For More Information Contact:
Kelly Kennedy
608/266-7876
MADISON – Attorney General Peg Lautenschlager announced today the Wisconsin Department of Justice has reached a settlement with Michael E. Polsky, the state court receiver appointed to take over the failed operations of Admanco, Inc. Admanco did business at a plant located in Ripon, Wisconsin. On December 30, 2004, it filed for receivership. Approximately 180 employees lost their jobs, although some were re-hired by the company that purchased a portion of Admanco’s assets.
The Wisconsin Department of Workforce Development (DWD), which represents most of the former employees in their efforts to collect unpaid wages, estimates $590,000 is owed for vacation, sick and personal pay. Under the settlement, that amount will be paid in full. The settlement is subject to court approval.
“Wisconsin workers are entitled to wages owed to them in the unfortunate event of a plant closing,†Lautenschlager said. “I’m pleased this substantial settlement enforces this basic protection, and will provide much needed funds for these workers and their families.â€
DWD is also investigating possible plant closing and other wage claims. Wisconsin employers with more than 25 full-time employees are generally required to provide employees with 60 days written notice before a business closing. If they do not, affected employees are entitled to the pay they would have earned had they worked during the 60-day period. There are, however, certain statutory defenses to having to give the 60-day notice, and the receiver has asserted those defenses. Admanco is also entitled to a credit against any notice liability for at least some of the employees hired by the purchaser. That investigation and settlement negotiations on the plant closing issue are ongoing. If unsuccessful, the matter will have to be decided in court. If there is a resolution favorable to the employees, there will be a second distribution made by DWD.
If the court approves the current settlement, DWD will send notices to the former employees it represents. The notices will show the amount each worker will be paid. Each employee who wishes to participate in the settlement must opt-in by signing and returning a claim form to DWD by a deadline that will be established and included in the notice. Employees do not have to agree to the settlement. If they choose not to opt-in, they may pursue their own claims for any wages owed.
