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Employment attorneys weigh-in on options for employees of Fair Oaks tiny home company

Attorneys say Anchored Tiny Homes could face expensive fines and penalties for failing to pay employees in a timely manner.

SACRAMENTO, Calif. — Employees from Fair Oaks-based company Anchored Tiny Homes told ABC10 they were told to go home without pay last week after their company president said payroll couldn't be met.

Now, employment attorneys say these employees have a lot of options.

Last week, John Weinheimer told ABC10 he got notice Anchored Tiny Homes would not be able to pay him.

"I'm one of dozens and dozens of employees who are owed for the work they've already done, not to mention losing their jobs," he said Tuesday.

While the current state of the company is unclear, employees like Weinheimer are left wondering if they'll ever get that pay check if the company is financially unstable.

"They're definitely going to have to deal with back wages because it has such a very high priority. Other creditors of the company will have to take a backseat too before they can recover the employees' wages. It's called a super priority," said employment attorney, Eric Lambdin.

Lambdin says if the company files for bankruptcy, it can be beneficial to the employee. He also encourages people to file a complaint with the state's Labor Commissioner's Office, but warns that route could take a long time.

"The labor commissioner's office is buried with this type of thing and it takes a long time. It's a very slow process," said Lambdin.

Failing to pay employees in a timely manner can also result in fines on the company.

"If the work is not paid for on time, those employees would be entitled to $100 penalty for the first violation and then a $200 penalty for each subsequent violation, as well as an additional 25% of the amount that they were shorted," said David Mastagni, Attorney and Partner at Mastagni Holstedt.

ABC10 tried to reach out to Anchored Tiny Homes CEO, Colton Paulhus, asking about his plans to pay back his employees. We did not hear back.

A spokesperson for the Sacramento District Attorney's Office confirmed they received a complaint letter about Anchored Tiny Homes, but would not add any further comment. 

ABC10 performed a wage claim search with the Department of Industrial Relations and it shows Anchored Tiny Homes is under investigation from a complaint filed in May 2023, but there doesn't appear to be any claims filed in 2024.

WATCH MORE ON ABC10: More people allege Fair Oaks tiny home company refused to pay for work or finish promised projects

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