Wisconsin Ag Connection - Bankruptcy Court Orders Golden Guernsey to Pay Past Wages

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Bankruptcy Court Orders Golden Guernsey to Pay Past Wages
Wisconsin Ag Connection - 12/17/2020

A Delaware bankruptcy court has approved an agreement that will require Golden Guernsey Dairy, LLC to pay at least $1.1 million in past wages and other employment benefits owed to its former employees after abruptly closing down its Waukesha facility nearly eight years ago. That's when the dairy processor filed for bankruptcy without compensating its employees or providing the advanced closure notice required by state law.

"DOJ and DWD worked together to obtain over $1 million in wages owed to former Golden Guernsey Dairy employees," said Wisconsin Attorney General Josh Kaul. "Hard-working Wisconsinites shouldn't have to go without pay for their work because their employer went bankrupt."

The company had employed over 100 people at its 170,000 square foot dairy plant at the time of its closing. Kaul claims that when Golden Guernsey shut down operations on January 5, 2013, they failed to provide the required notice under Wisconsin's business closure law, which states employers must provide at least 60 days advance notice to both its workers and state and local government officials prior to closing. During that 60-day notice period, the employer must also continue to pay all wages and benefits due to its employees.

After receiving complaints from those affected by the closure, the Department of Workforce Development's Equal Rights Division investigated the incident and determined that Golden Guernsey owed its employees over $1.56 million in unpaid wages and benefits.

Kaul says DOJ and the bankruptcy trustee entered into an agreement that provides for a payment of up to $11,750 to each employee.

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