GRAND RAPIDS, Mich. — Workers say a Grand Rapids trucking company owes them thousands of dollars after it abruptly shut down last month, but never issued final paychecks or reimbursements for money held in escrow.
According to employees, Sunset Logistics closed on September 25, resulting in the layoffs.
Erich Lenhart, a former driver, says he found out after he made a delivery in California.
“I had to borrow money to rent a car and to get gas money to drive 2,000 miles across the country to get home,” said Lenhart, who lives in North Carolina. “As it stands, I've got just a little over $100 in my checking account, and just a little over $100 in my savings account.”
Lenhart says it happened without any notice, and adds that he and other workers have not gotten their final paychecks or the $1,000 that the company required them to put in escrow in case of an emergency on the road.
According to Lenhart, Sunset owes him at least $2,000.
“The whole way home, I'm thinking, ‘Alright, I've got to get a job as soon as I can,’” said Lenhart. “I've got a mortgage, I've got a family to take care of, I've got to put food on the table, I’ve got credit card bills.”
David Whetstone, another former driver based in Texas, told the same story.
“I’m blessed, I'll make it through, but a lot of people, what if somebody's a month behind on their house payment? Or they're paying it 15 days late?” asked Whetstone. “Now they're gonna go a month without making money - a week to find a job, another week to get on board, a couple of weeks to get paid - people could lose homes or cars.”
The company’s president, Harvey “Buddy” Gainey III, did not respond to FOX 17’s request for an interview.
No one answered when the Problem Solvers stoped by Wednesday afternoon either. Records we obtained show that the car parked out front at the time belongs to him.
In an October 5 email employees shared with FOX 17, Gainey reportedly said he wanted to issue out the funds, but could not because the bank seized their account.
“I very much want to pay everyone their final paycheck and escrow,” wrote Gainey. “The bank has seized our account and I have no control over paying anyone, including myself. That being said, I am working with my lawyer to try to get the bank to release the funds necessary to pay the last check and escrow.”
Court records show his father filed for bankruptcy in 2008. Gainey or Sunset has not.
“We run into this frequently,” said Rob Howard, an attorney at Bos & Glazier. “Even if they didn't go out of business, they fire the employee, there's often issues with the withholding of their last check.”
According to Howard, the Michigan Payment of Wages and Fringe Benefits Act requires businesses pay workers any amount earned on the regularly scheduled day for that period.
“If you don't have the money to continue operating, it makes complete sense that you have to close the doors,” said Howard. “There's some different laws that apply for larger scale employers such as the Warn Act, but I don't believe that's going to apply here for this small trucking company in West Michigan but they still have an obligation to pay their bills, including employee wages as part of that.”
He suggests employees file a wage and hour complaint with the state’s Department of Labor and Economic Opportunity.
Whetstone and Lenhart wish Sunset handled the shut down differently.
“You did us wrong, you should have given us,” said Lenhart. “At the very least, you should have given us the opportunity to work things out.”
