Workers say defunct firm reneged on wage promise

Alana Roberts

Tuesday, Dec. 7, 2004 | 10:54 a.m.

About 20 former security guards are wondering how they're going to pay bills this month now that their former employer, Freedom Security LP, broke its promise to pay them the wages they earned.

"It was very unfortunate for us because Christmastime is coming, our commitments will not be taken care of," said Avelino Santos, 63, one of the company's former security guards. Santos said he worked for the company and its predecessor, Universal Security Services, for almost two years.

Santos said he and the other workers received checks for $175 from the Las Vegas company on Friday. He said that pales to the $896 he is owed, which equals three weeks of wages at $7 an hour along with a deposit he paid the company for his uniform.

"I'm on hard times," added Paulino Derige, 66, another former Freedom Security employee. "I have to pay my house (mortgage). I might lose my house."

Santos said he and other workers were informed at an all-staff meeting on Nov. 23 that the company would be closing on Nov. 30. A letter to confirm what was discussed at the meeting was given to the workers.

In that letter, written by Georgia Rahas, the company's treasurer, Rahas said the company would pay the workers in full on Friday for all hours worked between Nov. 9 and Nov. 30. She also said that the deposits the workers paid on their uniforms would be returned at that time. She told the workers to turn in all uniforms and other equipment when they came to pick up their paychecks.

In the letter, Rahas also apologized for the company's closing.

"Chief (Linda) Lambert (the company's owner) and myself want to extend our deepest apologies for the untimely nature of this closure," Rahas said. "However, it is beyond our control. Thank you all for your loyalty and hard work, it has been appreciated."

However, on Friday when workers arrived, the doors to the business were locked and a man he had never seen before who was waiting in a nearby car passed out the $175 checks, Santos said.

"When we got there the door was locked and nobody was in the office," Santos said. Another letter, this time signed by Freedom Security, stated that workers would only be receiving the $175 checks and they could turn in their uniforms if they wanted to. The company also invited the workers to contact the Nevada Labor Commissioner's office.

"As Freedom Security is no longer in business, any complaints regarding the balance of monies owed you may be taken to the state labor commission," the letter stated. "As the company is out of business the owner Linda Lambert will be responsible for answering any complaints filed. We deeply regret the above situation."

Neither Rahas or Lambert could be reached for comment. Santos said although his $175 check cleared, some of the other workers' checks were returned for insufficient funds.

Freedom Security opened in May, after replacing its predecessor Universal Security Services. Universal Security Services incorporated in 1979, according to the Nevada Secretary of State's Web site.

Santos said he attempted to contact the Nevada Labor Commissioner's office on Friday, but that he was put on hold and didn't get through.

However, Michael Tanchek, acting Nevada labor commissioner, said his office is currently investigating the matter.

"We'll look into it and see if there are any wages that are due these employees and take any action that we need to take in order to help them get paid," Tanchek said.

He said workers in such situations have some recourse through the Nevada Labor Commissioner's office to obtain their money. However, he said there are limits to what his office can do against bankrupt companies or companies with no resources. He said there is no state trust fund for employees who lose their jobs and aren't paid their wages.

"Instant gratification isn't going to happen," Tanchek said. "We do what we can within restraints."

Penalties can accrue for workers who are owed money and can equal up to 30 days of the workers' pay. Tanchek said not paying workers' wages is a misdemeanor and violates Nevada's labor laws.

However, the state labor commissioner has only once pursued criminal charges against an employer for not paying wages to its workers.

Terry Johnson, the state's former labor commissioner, pursued criminal charges against Robert DeMaio, president of Dot1web.com, an Incline Village Internet-based company.

DeMaio owes $429,480 in penalties and back wages for more than 60 employees. Tanchek said the case has been turned over to the Nevada controller's office, which is seeking to get payment for the debt through collection agencies.

However, Tanchek said most wage claim cases are handled administratively.

"The objective isn't to punish the company; the objective is to help find a way to get everybody paid what they're owed," Tanchek said.

He said the process the labor commissioner's office goes through in trying to obtain workers' wages includes contacting employers to inform them that former employees claim they're owed money.

Tanchek said such disputes are often settled at that point, and the employer will just pay the amount owed to the employee.

If the employer objects and claims it doesn't owe the money, the labor commissioner's office will investigate and make a determination about what is owed to the employee.

The losing side has an opportunity to object, and then the case will go to a hearing overseen by the labor commissioner, Tanchek said. If either side objects to the labor commissioner's decision, then the opposing party can file a lawsuit in a state court, such as Clark County District Court.

Tanchek said employers should be "intimately" familiar with the state's labor laws and he urged employers who have questions about their responsibilities should either refer to the labor commissioner's Web site www.laborcommissioner.com or contact his office.

Santos said he is currently working part time at another security firm and he is also looking for another full-time job.

Derige said he has a job with another security guard company and is working as much as he can to make up for his $980 loss.

Santos said if the state labor commissioner's office is unable to get the wages he is owed from the company, he hopes to at least get the word out about what the company has done to the workers.

"If we can't get anything, at least some people will be warned about this practice," Santos said.