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


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

Posted by Marc Smith | Feb 18, 2011 | 0 Comments

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.

About the Author

Marc Smith

Marc J. Smith is a Rockville, Maryland employment attorney and a founding member of the law firm formerly known as Smith, Lease & Goldstein, LLC. In 2018, after 18 years managing Smith, Lease & Goldstein, LLC's employment counseling and litigation practice, Marc launched his own boutique practice...


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Representation Of Employers And Employees

The Law Office of Marc J. Smith, LLC is a boutique employment law practice based in downtown Rockville, Maryland near the Montgomery County Circuit and District Courts. The Firm’s practice focuses exclusively in the employment law arena and provides counseling, litigation and a wide range of other employment-related services to employers and employees throughout the State of Maryland, Washington D.C. and other jurisdictions. The Firm also represents individuals who have failed to register with the Selective Service System and who are trying to apply for or maintain federal employment.