What rights do employees have if their company files Chapter 11.
I have worked for a company for 24 years. They have filed Chapter 11. they do not want to pay the employees any severance or their acrued vacation monies. What rights do we have?
1 answer | asked Jan 24, 2010 09:45 AM [EST] | applies to California
Answers (1)
It is totally up to the bankruptcy trustee. You are an unsecured creditor - so have to wait to see what assets are available to pay secured creditors, then unsecured creditors. in order as dictated by bankruptcy law. You may get paid something or nothing, many years later.
However, the Company may be subject to the State of Federal Warn Act that requires 60 day notice (or pay) in the case of a general lay off. If you were laid off without that notice - seek the advice of an attorney who deals with the warn act. A separate lawsuit will need to be filed - usually along the lines of a class action.
posted by Elisa Ungerman | Jan 24, 2010 6:00 PM [EST]
However, the Company may be subject to the State of Federal Warn Act that requires 60 day notice (or pay) in the case of a general lay off. If you were laid off without that notice - seek the advice of an attorney who deals with the warn act. A separate lawsuit will need to be filed - usually along the lines of a class action.
posted by Elisa Ungerman | Jan 24, 2010 6:00 PM [EST]
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