Former Reagor-Dykes employees claim they were not paid
Following a Bankruptcy Court hearing last Friday, employees of the Reagor-Dykes Auto Group were assured they would get paid. Now, some claim that has not happened.
These now-former employees claim hundreds of workers have not received their checks for the last pay period.
We are protecting the identity of a former employee. We call him Ethan. He claimed on Monday employees at the dealership went to work and were told managers were only keeping on a skeleton crew.
"I just feel everything that we were taught to believe in this company was totally false," Ethan said.
Another former employee also wanted to remain anonymous. We will call him Mark. He said the company has not covered all of its payroll obligations, paying some salaried workers and some hourly laborers, but not everyone.
To make up for the lost money, it was suggested that employees take a hardship withdrawal from their 401(k).
"A number of us had to go in and resign to get access to our 401(k) which they actually had to okay it and they sent that off too," Mark said.
Ethan claimed he has not gotten any confirmation his resignation has gone through. He was told HR would handle it, but so far he has no access to his savings.
"We were given her number, we were told to call and so far no one has answered," Ethan said.
Ethan said it is a month's worthy of pay he doubts he will ever see.
"I've got children in school, and schools coming up this month, and I have no means of buying their school clothes or anything this month," Ethan said.
It is not just pay they are losing, their health insurance has now been cut off.
"We have some sick individuals as far as ladies with cancer and different things," Mark said. "Some gentlemen that don't have very good health and our insurance has been terminated, as well as our dental."
There is legal action these employees can take and Lubbock Attorney Fernando Bustos suggests they do so immediately.
"They need to check and see if the company they work for is one of the bankrupt companies," Bustos said. "Then they need to go ahead and file a proof of claim in the Bankruptcy Court saying hey I'm owed wages, and those are priority claims in the bankruptcy process."
Bustos suggests hiring a bankruptcy lawyer who can handle the proof of claim. However, if you cannot afford to do so, you can file it yourself. You will then receive notices on hearings and how the case is progressing.
"You've gotta be proactive," Bustos said. "You don't want to sit around and just wait for something to happen, while somebody may just swoop in and buy the dealership, well they aren't going to be responsible for past wages that are already due."
For now, Ethan said he is hoping the company will step up and take care of the hundreds who feel they have been left in the dark.
"At this point all we can do is pray," Ethan said.
By August 17, Ford Motor Credit must file an amended version of its lawsuit, just naming Bart Reagor and Rick Dykes as defendants.
The first meeting of the creditors will take place on September 6. At this meeting, Reagor-Dykes representatives will be questioned by the State of Trustees in reference to the bankruptcy and owed wages.
To file a proof of claim, click here.
THURSDAY 8/2: Sources: Reagor-Dykes cannot make payroll
WEDNESDAY 8/1: Ford Motor Credit sues Reagor-Dykes; R-D files for chapter 11 bankruptcy