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Subcontractor sued for non-payment of wages

When you run a small business, sometimes you run into financial trouble. This is the case with a company based doing work in Baltimore, Maryland. A class-action suit has been filed against a construction company involved in a large apartment building project. A class-action suit is when one or two people bring a suit against a company, large or small, that represents a larger group of people who believe they have been wronged.

The construction company is building on Light Street, and the complex will house 445 apartments. This is the largest apartment conversion project in downtown Baltimore in history.

The company ran into financial trouble and allegedly paid its employees sporadically, partially or not at all. Many of the employees claim they are due thousands of dollars. The employees allege that their pay was short week after week. They are suing for underpaid and unpaid wages, and damages for a three-year period.

The suit is being brought on behalf of 50 to 100 people. The employees were all hired to work for between $9 and $12 per hour, but the company could not meet these obligations. There are additional allegations through a mechanics lien against an affiliate of the company being sued.

business litigation, such as this one, can seriously affect a company's reputation. It's important to know your legal rights as an employer, and an experienced business law attorney is a good place to start.Working proactively to disprove such a lawsuit is important, but negotiating a settlement can be just as crucial when it is needed to move forward.

Source: Baltimore Sun, "Workers sue 10 Light Street contractor, developer for unpaid wages" Natalie Sherman, Dec. 23, 2013

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