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mass termination without last paycheck

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m12345

Junior Member
New Jersey:

Our company A has been a part of a bigger corporation B (I do not know what kind of partnership/ownership was in place). Suddenly we have been told by A's president that B has terminated all of us (employees of A) including himself. We were let go without termination letter, without paycheck for the last two weeks we worked, without expense reimbursing, without COBRA offering, without non-used vacation days compensation (even not talking about advance notice and severance since they are more of a courtesy things than an obligation by the law).

Who shall we be suing, A or B, or both? What is the best way to proceed - everyone for himself or have some kind of a class action (there are about a dosen of us).

Thank you
 


Beth3

Senior Member
N.J. reg's require final pay be provided within 10 days of termination. NJ reg's do not require the payout of vacation upon separation however.

Whether they've violated COBRA reg's depends on what date you were terminated AND when your insurance ends. (The last day of work? The end of the month in which you last worked?) Your employer has 14 days from the date your insurance ends to provide the COBRA notice to you if they are using an outside administrator; 44 days if they're self-adminstering.

You don't have to sue anyone. You may contact NJ's Department of Labor to file a claim for unpaid wages and the federal Department of Labor if they are out of compliance on COBRA. Everyone who is similarly affected needs to do the same thing.
 

m12345

Junior Member
Thank you Beth. But what about non-paid expenses? Shall it go via NJ Department of Labor too?

Thanks again
 

Beth3

Senior Member
Reimbursement of business expenses is a matter of company policy. No laws compel an employer to pay for business travel, meals, etc. If your employer refuses to do so, then your option is to file suit in small claims court and hope a judge decides in your favor.
 

m12345

Junior Member
H-mm... In my case I traveled abroad by my company's request, and spent there 3 weeks. The expenses were paid by corporate AMEX so the records are there (though I am liable for them per cardholder's agreement). The amout is twice of what Small Claims Court handles (they deal with $3,500 or less, don't they). Looks like I have to find a lawyer and go with a standard court...
 

Beth3

Senior Member
I expect the dollar limit on small claims court varies by State but I believe it's usually at least $5,000. You should at least call your local Clerk of Courts and inquire before deciding whether you need to go to the expense of hiring an attorney.

Another option would be to have an attorney write a letter threatening to sue if the expenses are not paid. That might resolve the problem without actually having to take legal action.
 

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