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Friday, August 23, 2019

Van Hollen settles with closed business

By Nick Rees | Oct 7, 2009

Van Hollen

MADISON, Wis. (Legal Newsline) - Wisconsin's attorney general has recovered compensation of more than $123,000 that employees lost when a Milwaukee business management consulting company closed earlier this year.

Twenty-seven former employees will receive a share of the first payment of $65,138.48 from Sagence, Inc., following an agreement reached by the company and its primary lender, Silicon Valley Bank, with the state's Department of Justice and Department of Workforce Development.

"It is clear in Wisconsin that laws protecting the rights of workers to compensation must be followed," state Attorney General J.B. Van Hollen said.

"The Wisconsin Department of Justice represents the Department of Workforce Development in enforcing the law when violations unfortunately occur."

A second payment of $58,218.49 will be distributed to 23 former employees who were not officers at Sagence. Wisconsin's Wage Payments, Claims and Collections laws entitle eligible workers to payment of as much as $3,000 in unpaid wages before most other creditors may be paid.

The 23 former workers will then be paid either the full amount of wages claimed or $3,000, whichever is lesser.

"In each of the last two years, DWD succeeded in collecting well over $2 million on behalf of thousands of workers and their families," Roberta Gassman, secretary of the Department of Workforce Development, said.

"This is another example of our strong, effective enforcement of state laws protecting workers, a collaborative effort with the Department of Justice."

Sagence closed on May 29 and had a sale of its assets. The company's primary lender, Silicon Valley Bank, and the purchaser of Sagence then wanted to address any potential wage claim liens as soon as possible.

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