'A class action lawsuit is foreseeable': Raleigh lawyer says St. Augustine's employees could sue if more paychecks are missed

According to employment lawyer Katie Abernethy with the Noble Law Firm, it's possible employees could file a class-action lawsuit against the school, which is in the middle of a financial and accreditation crisis.

Posted 5:32 a.m. Mar 20 — Updated 7:39 p.m. Mar 20

Chris Lovingood

, WRAL anchor/reporter

While some Saint Augustine’s University employees have received their paychecks, some told WRAL News they are still waiting.

Employees told WRAL News in February that the university missed paychecks on several occasions since November, including twice since February.

“It’s always tragic when you see employees not getting paid timely,” said Katie Abernethy, a partner at the Noble Law Firm.

The Noble Law Firm specializes in employment law, and Abernethy said if the school continues missing paychecks, they could open themselves up to legal action from the employees.

“I think a class action lawsuit is pretty readily foreseeable here,” she said.

The school currently faces a $7.9 million tax lien from the IRS, as well as owing money to other unpaid debts.

'My bank account is at $59 right now' Saint Augustine's University employees struggle to make ends meet after not getting paid again

According to the North Carolina Wage and Hour Act, employers must pay their employees their earned wages on their scheduled payday. Abernethy says when an employer does not pay their employees on their payday,

Employees can sue their employer for the missed paychecks and “liquidated damages," which Abernathy said is similar to a penalty fee.

"Let's say you owe someone $15,000 in unpaid wages. Liquidated damages would say they get that initial $15,000, and they get another $15,000,” Abernathy explained.

Abernethy said another route employees can take is filing a complaint through the North Carolina Department of Labor's Wage and Hours Division, but Abernethy said people who chose that option could wait longer for a while.

"They do great work over there, but it is a taxpayer-funded agency with limited dollars to spend and limited resources and personnel to do things," Abernethy explained. "You can run into a large backlog if you go through DOL. So don't be surprised if you file a wage and hour claim with the DOL and you don't hear anything for a few months."

Employees are protected from retaliation when they file these lawsuits because of the Retaliatory Employment Discrimination Act (REDA).

According to the North Carolina Department of Labor, REDA protects employees against retaliation for filing workplace safety and health complaints and other protected activities.

Abernethy said if an employer fires an employee for filing a lawsuit, they must pay them “treble damages,” in addition to your initial and liquidated damages if they are found liable.

Abernethy told WRAL News what she would like to see employers do in similar situations to St. Augustine's: making sure employees are paid first.

"I know a lot of time when trying to save a business or an institution heading towards bankruptcy or financial difficulties...the employee wages are going to get you in more trouble than not paying than not paying your service provider or creditor on time," she explained. "Those have legal liabilities you can attach, but they're not as draconian as having to not only pay back your employees, but potentially having to pay them back twice."

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