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Van Hollen and Gassman Announce Workers to Receive Settlement Payments in Koenig & Vits, Inc.


MANITOWOC – Attorney General J.B. Van Hollen and Department of Workforce Development Secretary Roberta Gassman today announced the recovery of $144,665 in compensation that Koenig & Vits, Inc. employees lost when the Manitowoc County firm closed earlier this year.


“It is clear in Wisconsin that laws protecting the rights of workers to compensation must be followed,” Van Hollen said. “The Wisconsin Department of Justice represents the Department of Workforce Development in enforcing the law when violations unfortunately occur.”


Eighty-six former employees of Koenig & Vits, Inc., of Manitowoc, will recover back wages owed to them as a result of legal action taken by the Wisconsin Department of Justice (DOJ) and the Department of Workforce Development (DWD).


“Over the past five years, DWD succeeded in collecting well over $15 million in wages on behalf of thousands of workers and their families,” Secretary Gassman said. “This is another example of our strong, effective enforcement of state laws protecting workers, a collaborative effort with the Department of Justice.”


Michael S. Polsky, Esq. was appointed receiver on October 8, 2009. At the request of the Department of Workforce Development, the Department of Justice filed a wage lien and a claim in the receivership. The claims were made for unpaid wages and benefits. The 86 former workers will share the $144,66517 recovered from the receivership.


Under the state's Wage Payments, Claims and Collections laws, eligible workers are entitled to payment of up to $3,000 in unpaid wages before most other creditors may be paid. In this case, the 86 former workers will either receive the full amount claimed, or $3,000, whichever is the lesser amount.


The payments, agreed to between the state and Michael S. Polsky, Esq., the court appointed receiver, and have been submitted to the court. The resolution is subject to court approval.