BEATRICE, Neb. (AP) — An October trial has been scheduled in a lawsuit against Dempster Industries that was filed by former employees who believe they are owed thousands of dollars in back pay.
A dozen former employees sued Dempster and its president and CEO, Wallace Davis, in September 2011 for lost wages and other earnings that total more than $160,000. The trial is scheduled to begin Oct. 21 in Beatrice.
The suit alleges that Davis and Dempster also didn't pay parts suppliers, defaulted on loans from banks and economic development firms and didn't deliver products to customers who paid up front. The Beatrice manufacturing plant closed last year.
But when the company ran into financial difficulty, the lawsuit alleges, Davis imposed mandatory cuts in wages and hours. The workers said they lost their health insurance because the company had bounced checks to the insurance company.
The lawsuit also alleges that Davis promised to compensate them for the wage and hours cuts but didn't deliver.
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