WAUKESHA, Wis. — Nine months after TJ Hale abruptly shut down its Menomonee Falls operation, the state says 77 former workers are owed more than $1.1 million, but none of that money has been recovered.
The Wisconsin Department of Workforce Development determined TJ Hale violated the state’s Business Closing and Mass Layoff Law by failing to provide workers with the required notice before closing.
DWD says the $1,112,089.09 represents the total amount the agency determined is owed to former workers.
Former TJ Hale workers owed $1.1 million after abrupt closure, state says
The agency has referred the case to the Wisconsin Department of Justice, which has the authority to pursue legal action in circuit court to recover money on behalf of the affected workers. DWD says if TJ Hale cannot or will not satisfy the lien, the agency will ask DOJ to pursue legal options to enforce it.
Former TJ Hale employee Tom Knight has stayed in contact with TMJ4 throughout the investigation.
“I hope that they can actually take care of it and get the people who worked there the money that they deserve, because the way they closed the doors wasn’t right,” Knight said.
Workers first reached out to TMJ4 after TJ Hale closed in February with little warning.
Previous Coverage: https://www.tmj4.com/news/waukesha-county/state-investigation-launched-as-former-tj-hale-workers-seek-answers
Previous Coverage: https://www.tmj4.com/news/waukesha-county/200k-in-supplier-suits-after-tj-hale-closure-workers-left-out-in-the-cold
Previous Coverage: https://www.tmj4.com/news/waukesha-county/menomonee-falls-manufacturer-abruptly-closes-leaving-dozens-of-workers-without-jobs
DWD later investigated the closure and determined 77 employees were affected. The agency found TJ Hale should have provided workers 60 days’ notice before closing. Instead, employees were notified the day the company shut down.
TJ Hale argued its closure resulted from financial problems the company could not have reasonably foreseen, including worsening cash flow and its inability to secure additional financing.
DWD rejected that argument.
TJ Hale challenged the agency’s initial determination, but DWD upheld its finding that the company violated Wisconsin’s business-closing law and declined to change the amounts it determined were owed.
The agency subsequently filed a wage lien for more than $1.1 million in Waukesha County.
Court records reviewed by TMJ4 show TJ Hale has other creditors seeking money from the former company.
Three unsatisfied money judgments identified by TMJ4 total nearly $117,000, while additional money-judgment cases against TJ Hale remain open.
DWD confirmed that none of the $1,112,089.09 it determined is owed to former workers has been recovered.
Knight said that leaves him doubtful he will ever receive the money.
“No, I do not believe I will be,” Knight said. “I’d like to think I will, but I don’t think we’re going to see it.”
DWD said in a statement that the agency moved quickly to investigate allegations that the state’s business-closing law had been violated.
“Any employer that chooses to overlook Wisconsin’s labor laws and violate their workers’ rights will be held to account,” DWD said.
TMJ4 reached out by phone and email to a registered agent listed for TJ Hale seeking the company’s response. So far, we have not heard back.
For Knight, the latest development represents another step in a fight that began when TJ Hale closed its doors nine months ago.
“I’d like to see the small guy win for a change,” Knight said.
It’s about time to watch on your time. Stream local news and weather 24/7 by searching for “TMJ4” on your device.
Available for download on Roku, Apple TV, Amazon Fire TV, and more.
