A group of current and former employees from a bankrupt Colorado metal fabrication and construction company have taken legal action against their employer, alleging they have not received their wages. The workers, including Adrian Conejo, Chris Ashmore, Jason Mack, Jeffrey Martin, and Miguel Acosta, filed a proposed class action in federal court, claiming their paychecks began bouncing in 2023.
Allegations Against Steel Huggers LLC Owner
The employees have targeted Nicholas Malwitz, the owner of Steel Huggers LLC, accusing him of violating the Fair Labor Standards Act and Colorado wage laws. Despite the company’s bankruptcy filing in November, the workers have directed their lawsuit towards Malwitz, whom they identify as their joint employer due to his sole ownership of the business.
colorado Metal Workers Sue Boss For Unpaid Wages : Financial Turmoil and Unpaid Wages
According to the workers, financial troubles plagued the company in early 2023, leading to decisions by Malwitz regarding creditor payments, cash flow management, and payroll. While acknowledging its financial struggles, Steel Huggers LLC reportedly owes over $200,000 in unpaid wages, classified as priority claims in its bankruptcy proceedings.
Wage Discrepancies and Employee Hardships
The employees assert that in 2023, they began experiencing problems with their pay, initially encountering bounced checks before eventually ceasing to receive any compensation. Despite working full-time hours, often exceeding 40 hours per week, the plaintiffs, such as Conejo, detailed rigorous schedules without proper compensation.
colorado Metal Workers Sue Boss For Unpaid Wages : Allegations of Employer Misconduct
The lawsuit alleges that Malwitz was aware of the company’s inability to pay its workers but continued to utilize their labor to sustain business operations. Conejo further claims that upon leaving the company and requesting his owed wages, Malwitz disputed the amount owed and refused to compensate him accordingly.
Legal Action and Proposed Class Representation
Seeking to represent both a Fair Labor Standards Act collective and a state law class action, the workers aim to include current and former employees from the past three and six years, respectively. With proposed classes encompassing over 50 individuals, the lawsuit highlights the significant impact of wage non-payment on workers and the benefit gained by the employer.
Responses and Legal Representation
As of Friday, counsel for the workers, represented by Penn A. Dodson of AndersonDodson PC, had not issued a response to requests for comment. Nicholas Malwitz, the defendant, was unavailable for comment at the time of reporting, and information regarding his legal representation remained undisclosed.
colorado Metal Workers Sue Boss For Unpaid Wages : Conclusion
The lawsuit reflects the ongoing struggle between labor rights and employer responsibilities, underscoring the challenges faced by workers in securing fair compensation amidst financial adversity.
