Schimmel & Parks, APLC - Litigation
Tell Us About Your Case 818-922-8544

Some companies try to change names to avoid employee lawsuits

Since the beginning of the #MeToo movement, more businesses have been exploring their legal options to avoid getting sued by their own employees for sexual harassment. Though many companies in California have put more effort into making their workplaces safer, others have tried more underhanded methods to keep their money and their reputation.

One of these ways is giving their company a fresh new start around the time of the lawsuit. These employers figure that if the business has a new name and someone else in charge, then they can't be held liable for harassment accusations. Workers should be aware of this devious strategy and how they can overcome it.

New name, same problems

A recent sexual harassment case in Iowa serves as an example of how bad this technique can get. Back in 2010, a female worker and four other employees sued the toy company they worked at and won. However, they did not receive the $2.4 million they were owed because the company changed names and even countries. The business they originally worked for apparently was no longer present in the U.S.

KCCI's investigations reveal that the businesses had operated at the addresses they provided, but the companies denied ever working there. An attorney they interviewed claims that there are many businesses in Hong Kong, California and Iowa that have these contingency plans to avoid paying for these lawsuits.

It isn't over yet

If you find yourself in this scenario, you shouldn't give up hope. The women in the previously mentioned case are now filing a lawsuit against the employers that own the various backup companies. If they can prove the employers purposefully made these new companies and shut down old ones to avoid paying for hefty lawsuits, then the court will charge them for the money they originally owed and for committing fraud.

Make sure you take action as soon as you can. Even if it is supposedly the same company you sued before, California's statutes of limitations still apply to you. Contact an employment law attorney as soon as you can to avoid losing your case to these dishonorable tactics.

No Comments

Leave a comment
Comment Information
  • Insurance
    Bad Faith Result

    $250 Million

    Recovery for policyholders victimized by insurance bad faith practices following Northridge Earthquake.

  • Recent Class
    Action Result

    $23 Million

    Judgment on behalf of a class of employees for personal injury and loss of property related to illegal working conditions.

  • Recent Insurance
    Bad Faith Result

    $4 Million

    Recovery in defense costs for insureds denied their right to independent counsel by their insurance companies.

More Case Results

"I just wanted to say thank you again for taking our case through trial. We just think you are the best." - John S.

Read More Testimonials
super lawyers | Alan I Schimmel super lawyers | Michael Parks AV preeminent Martindale-Hubbell Lawyer Ratings LACBA los angeles county bar association The state bar of california Consumer Attorneys Association of los angeles CAALA

Legal Support When You Most Need It

To learn more, or to speak with a lawyer, reach out to our firm today. You can call us at 818-922-8544 or reach us online. We're here to answer your questions and address your concerns.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

email us for a response
Based in Sherman Oaks, we serve throughout the region.

Schimmel & Parks, APLC
15303 Ventura Blvd
Suite 650
Comerica Building
Sherman Oaks, CA 91403

Phone: 818-922-8544
Fax: 818-464-5091
Sherman Oaks Law Office Map

Contact This Office