With a criminal trial approaching, Dot1Web President Bob DeMaio has signed an agreement to pay wages owed to 96 former employees.
The agreement is with the Nevada State Labor Commission and Tom Creal, receiver for DeMaio's other company, LowestBids.com. The wages will be paid to employees who were laid off in December 2002.
"We've been working on this agreement for the past couple of weeks," DeMaio said. "Now, I've got my companies back and the back moneys owed the employees will be paid."
DeMaio said that the pay amount, with penalties and interest, comes to nearly $400,000 and will settle every labor claim the employees brought against him.
"The agreement also dissolves the receivership of LowestBids.com and there will be up-front money, as well as a payment plan," DeMaio said.
According to the agreement, DeMaio will pay the actual wage claim brought against him by the employees in the amount of $281,000, plus 10 percent interest, as well as $70,416, which represents 25 percent of assessed penalties.
DeMaio must pay the Labor Commissioner one-third interest in any recovery of claims held his companies against Nevada Security Bank.
DeMaio claims the bank was at fault for the present situation and that the matter will be resolved during his criminal trial that is scheduled to take place on Oct. 19.
"If the criminal trial goes forward, we are planning to call bank personnel to the stand to show that the bank was at fault in this matter," DeMaio said.
Acting Labor Commissioner Michael Tanchek said that, while it looks like an agreement has been worked out, "All of this flows back to performance on Mr. DeMaio's part."
Tanchek said that the arrangement allows DeMaio a chance to pay back his debt over time.
"Of course, we've had agreements with Mr. DeMaio in the past and, as of right now, we haven't received any payments," Tanchek said. "Like I say, it all depends on performance on Mr. DeMaio's part and I hope this all gets resolved with this agreement, but it looks like we have an agreement in place."
