How the media is failing Montgomery: An investigation
The Associated Press is reporting that the Montgomery Advertiser has filed for bankruptcy.
Montgomery’s parent company, the Associated Press Inc., has filed Chapter 11 bankruptcy protection, which would allow the company to exit Chapter 11 protection without the need for a court approval.
The bankruptcy filing comes amid concerns over how the Montgomery advertisers have managed to survive amid the mounting pressure on advertisers.
The Montgomery ad agency, which owns Montgomery’s Montgomery Newspapers, is under scrutiny for its handling of a lawsuit brought by former employees of the company’s parent, a publishing company.
The lawsuit was filed against the company by former staff who say they were forced to work on weekends and during periods when they weren’t allowed to work.
The lawsuit alleges that the company violated the federal Fair Labor Standards Act (FLSA) by failing to pay overtime, unpaid wages and other wages owed by its employees.
The complaint also says that the lack of pay raises, overtime pay and other forms of wage and hour protections is a violation of the National Labor Relations Act (NLRA).
The complaint is seeking class-action status and an injunction prohibiting the company from enforcing its contract with former employees.
In a news release on Wednesday, the company says that it is seeking to continue operating, but with the intent to seek Chapter 11 Protection.
The company says it has $1.2 billion in cash, including cash and equity.
Monterey is also seeking bankruptcy protection for a group of smaller companies, including the Monterey City Council, the Montgomery Newspaper Co., the Montgomery County Board of Supervisors and Montgomery County Auditor’s Office.
The group is asking for protection from creditors, as well as to receive up to $1 million in liquidation proceeds.
The AP says the lawsuit also alleges that former Montgomery employees of those companies and the county’s Board of Public Works “failed to adequately supervise the conduct of the Montgomery Advertising Agency.”
The AP also says the court filing says that former employees allege that the agency violated the Fair Labor Practices Act by requiring employees to work non-work weekends, which is prohibited under the federal FLSA.
The law states that workers must be paid for work they are paid for on the job.