Law Office of Marc J. Smith, LLC
Employment Law and Litigation Counsel

Employment Law Blog

Court Enters $1.3 Million Dollar Judgment In Favor Of Two Employees For Unpaid Wages

On February 18, 2011, Judge John McDowell, a Washington County Circuit Court Judge, entered judgment in favor of two clients who were former employees of Defendant IOT Systems. As described in our Complaint (a copy of which can be found here), during the course of our clients’ employment, IOT missed its weekly payroll on a number of occasions. Indeed, by the time our clients resigned last year, one client was owed over $250,000 in unpaid wages and the other was owed over $180,000.

At a hearing conducted this morning, Judge McDowell awarded both clients all of their back pay and awarded nearly treble (triple) damages under Maryland’s Wage Payment and Collection law. One client was awarded over $700,000 in back pay and additional damages under the Wage Payment and Collection law, and the other client was awarded over $500,000.

The Court also imposed personal liability on the president and owner of the company for violating the provisions of the Fair Labor Standards Act. In this regard, the Court accepted our argument that for the weeks our clients were not paid, IOT Systems violated the provisions of the Fair Labor Standards Act (“FLSA”) by not providing our clients with at least minimum wage. Accordingly, Judge McDowell imposed personal liability and entered judgment against the president and owner of IOT Systems (as authorized by the FLSA) for nearly $90,000 of the unpaid wages sought in the lawsuit.

Marc Smith