Eatontown-Based Birdsall Services Group Furloughs 300 Employees

Birdsall Services Group, an Eatontown-based engineering firm, furloughed its 300 employees Wednesday, after a federal judge blocked the payment of the indicted firm’s payroll and other expenses, according to an article on the Asbury Park Press.

Birdsall's former CEO and six of its executives and shareholders were indicted last month on charges they allegedly violated state pay-to-pay laws.

U.S. District Court Judge Michael A. Shipp blocked the release of any cash from the the firm’s accounts until a hearing can be held Monday on the state Attorney General’s appeal of the company’s bankruptcy filing, according to the report.

As a result, Birdsall canceled processing of its payroll for Friday’s payday, according to court documents.

“With no immediate certainty that we will be capable of paying our employees because of the frozen assets, we were forced to furlough all 300 existing employees to allow them to collect unemployment and not suffer any further financial hardship brought by the state’s actions,” Ralph Orlando, Birdsall president and chief executive officer, said in a prepared statement.

“I am deeply disappointed that these actions had to occur and hope that the state will recognize the hardships it is causing 300 families and our 1,000 clients and will work with us to resolve the matter immediately,” Orlando said.

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