Former Wisconsin dairy company ordered to pay wages, benefits

Local News

MADISON, Wis. (WFRV) – Golden Guernsey Dairy, LLC will pay at least $1.1 million to pay wages and other benefits owed to its former employees.

Attorney General Josh Kaul announced that a Delaware bankruptcy court has approved an agreement that will require Golden Guernsey Dairy, LLC, to pay at least $1.1 million to pay wages and other employment benefits owed to its former employees after abruptly closing down in 2013 and filing for Chapter 11 bankruptcy protection.

“DOJ and DWD worked together to obtain over $1 million in wages owed to former Golden Guernsey Dairy employees. Hard-working Wisconsinites shouldn’t have to go without pay for their work because their employer went bankrupt,” says AG Kaul.

Prior to its sudden closure in 2013, Golden Guernsey Dairy, LLC had employed over 100 people at its 170,000 square foot dairy processing, bottling and distribution facility in Waukesha, Wisconsin.

According to a release, Golden Guernsey shut down operations on Jan. 5, 2013, without providing the required notice under Wisconsin’s business closure law, Wis. Stat. § 109.07.

Under that law, employers of at least 50 or more persons in the state must provide at least 60 days advance notice to both its employees and state and local government officials prior to closing.

During that 60-day notice period, the employer must also continue to pay all wages and benefits due to its employees. An employer that violates this law is liable to each employee for all wages and benefits during the notice period.

After Golden Guernsey filed for Chapter 11 protection, DOJ filed a claim in the bankruptcy case in the number of unpaid wages and benefits owed to former employees and for failure to provide the required notice in violation of the business closure law.  

According to officials, DOJ and the bankruptcy trustee entered into an agreement that provides for a payment of up to $11,750 to each employee, for a total payment of $1,136,220.93.

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