UPDATE: Former Midwest Logistics employees speak out about payroll problems

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A North Liberty business is accused of handing out bad checks to workers after months on the job.

Workers at Midwest Logistics are furious after not being paid after working full-time for weeks or months.

A former truck driver at the company agreed to speak to NewsCenter 16 on the condition we don't show her face and only use her first name.

Michelle says one of the first times she tried to cash a paycheck, two banks refused.

"They flat out told me we can't cash this there's no money in the account," she said. "There was a lot of drivers that were just livid over it."

Several current employees who didn't want to be identified say about a year ago Midwest Logistics in North Liberty switched from a direct deposit system to paper checks.

That's when problems started and the checks started to bounce or payroll was late.

"Some of the drivers waited three weeks just to get a check," said former Midwest Logistics employee Louis Krenn. "Either you're going to sink with a company or you're going to swim. I swam away."

Krenn says after working for the company for more than 4 years, he quit his job because of the payroll problems.

He had checks bounce at least three times.

And, he's not the only one who's had enough.

One employee says he quit Tuesday after working for Midwest full-time for three weeks only to receive $175.

It's been tough on many of the families who can't file for unemployment since they are still legally listed on the company's payroll account.

Meanwhile neighbors say there's been a noticeable decline in the fleet's operation.

At one time it operated 85 trucks and 200 trailers but now it's been cut in half.

“I live, well you know it’s in my backyard basically,” says neighbor Ryan Norberg. “I noticed a lot less trucks pass the front yard and go along the side of my house in the last little bit.”

The Indiana Department of Labor says Midwest Logistics has been on their radar since January when the first wage complaint was filed. The department encourages anyone with a wage problem to contact them.

The owner, Wendy Fredericks, maintains payroll has always been on time. She denied that any fraudulent checks had ever been distributed and demanded the names of the employees who claimed they were not being paid.

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