Protecting a Business Sale Against the Labor Commissioner: How U2U Law Defeated a Wage Claim Before Closing?
- Case intro
Protecting a Business Sale: How U2U Law Defeated a Wage Claim Before Closing?
The Crisis
A California business owner was in the final stages of selling his company when a former employee filed a wage claim with the California Labor Commissioner, demanding:
$100,000+ in alleged unpaid wages, penalties, and benefits
Threat to the sale: The buyer refused to proceed until the claim was resolved
Why This Was Critical
Deal at risk: The entire business sale could collapse if the claim wasn’t defeated
Reputation damage: Lingering liability could scare off future buyers
Financial threat: Even a partial settlement could derail the transaction
- our process
Our Legal Strategy
Immediate Action
Reviewed all payroll records, contracts, and employment policies
Identified fatal flaws in the employee’s claims
Aggressive Defense Before the Labor Commissioner
Filed a detailed rebuttal disproving the allegations
Presented documentary evidence (timesheets, payment records, policies)
Leveraged case law to weaken the employee’s position
Protecting the Business Sale
Coordinated with the buyer’s legal team to assure them of the claim’s weakness
Negotiated no-payment dismissal of the complaint
- Result Driven
The Victory
Business Sale Saved – Transaction closed without delay
No Future Liability – No lingering legal threats
- No payment to employee nor any governmental agency
Why This Matters
✅ Business Sales Are Fragile – Employment claims can kill deals without warning
✅ Evidence Wins Cases – Proper documentation defeated baseless allegations
✅ Speed Matters – We resolved this before it jeopardized the sale
Facing a Wage Claim During a Business Transition?
U2U Law helps employers:
✔ Defeat frivolous Labor Commissioner claims
✔ Protect business sales from last-minute legal threats
✔ Resolve disputes without costly payouts
Don’t let an employee claim destroy your exit strategy.
Results depend on case specifics. Not a guarantee of future outcomes.
- Business sale saved – closed without delays
- No settlement, no admission of fault: The Great Victory for the Employer
- Legal defense tailored for critical transactions
- Protected business sales from last-minute legal threats
