Team America closure hurting Nevadans

Brendan Riley

Wednesday, Oct. 1, 2003 | 11:09 a.m.

CARSON CITY -- The sudden closure of Team America, a national business services firm, has left about 180 Nevada employers and about 1,000 of their workers without payroll and possibly insurance, a state official said Tuesday.

Nevada Labor Commissioner Terry Johnson also said he's concerned that Team America may have issued bogus checks to employees who were left with no income at the end of the month when rent and other payments are due.

"The employers had no prior knowledge that Team America was planning to close its doors. Then, they suddenly had employees coming to them for pay which, in some instances, the employers had already deposited into Team America's account," Johnson said.

"This is a serious issue, because the employers are legally responsible for the payroll no matter what. It puts them and their employees in a serious financial bind."

Recorded phone messages at Team America offices in Nevada and California stated the company filed Friday for protection under Chapter 11 bankruptcy laws, and curtailed business operations on Monday.

The message asks employers to be patient "while we prepare some alternative solutions to meet your payroll needs." It adds that employers should issue payroll checks and those checks can be verified by Team America once normal business operations resume.

Registered as an "employee-leasing" company in Nevada, Team America provided payroll and insurance administration as well as tax withholding records to small business owners throughout Nevada and across the country.

Johnson said that regardless of any contracts that employers have with payroll companies such as Team America, Nevada law makes the employers ultimately responsible for wages earned by workers.

If a payroll company fails to make health or life insurance premium payments, Johnson said the employer is liable to an employee for any money deducted from the employee's wages for the premiums.

He also said employees who demand unpaid wages but don't get them can file a claim with his office.

Nevada law also requires employers to maintain their workers' compensation insurance without a lapse in coverage.