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Wage theft: Judge closes Streamwood factory

A plastics factory in Streamwood was closed by a bankruptcy court judge last week after he learned the company had been showing him false payroll records in order to cover up wage theft.

Thirty workers will issue a demand that Duraco Products pay two years of back wages at an event Monday, February 22 at 12 noon at the front gate of the company’s factory, 1109 E. Lake Street in Streamwood.

They’ll be joined by their attorneys and representatives of the Chicago Workers Collaborative, which has a center for contingent and temporary workers in the northwest suburbs.

Last Wednesday, Bankruptcy Court Judge Eugene R. Wedoff ordered Duraco into Chapter 7 bankruptcy, taking operational control away from owners Michael W. Lynch and Kevin Lynch.  Wedoff had been overseeing the company’s Chapter 11 bankruptcy.

Over two years of delayed and partial payments, Duraco “systematically stole wages from its employees,” according to CWC.  The owners issued payroll checks to show to the court, but the checks weren’t distributed or weren’t covered by sufficient funds.

Workers charge they are owed thousands of dollars; some Duraco employees have suffered home foreclosures, vehicle reposessions, and family breakups due to lack of income while they were working as much as 60 hours a week, said CWC’s Tim Bell.

Wage claims filed with the state labor department were routinely dismissed due to the company’s bankruptcy.

Attorneys representing Duraco workers will try to get their back wages paid as an administrative debt, giving it priority over banks and other creditors, Bell said.

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Category: labor, wage theft


One Response

  1. […] week Newstips reported that a bankruptcy judge had ordered Duraco into Chapter 7 bankruptcy, closing the factory, […]

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