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Company closed with no notice

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mustang.2006

Junior Member
My company in SE Wisconsin closed in December 2008 with no notice to the employees. We were told by the finance director just a few weeks before that they had acquired a new contract and our company would be safe for at least another year with the possibility of two more consecutive yearly contracts to follow with the same customer. And we were told that if anything changed, we'd be given 90 days' notice. Then we were all called into a meeting to hear that the company was closing immediately and we were to go home right then. End of story. They've already held an auction to sell off the equipment and all 3 dozen or so of us are on unemployment, and many on foodstamps because we were already underpaid. Was this a legal closing and shouldn't we at least be entitled to 90 days' of pay in lieu of notice as a severance package? We had to fight just to receive our remaining vacation pay, but no one has received anything else. Ironically, the former employees who actually mismanaged our company into this spot were all let go months ago and each received a nice severance package and the offer of retraining. Those of us who remained with the company out of loyalty and did our best in a bad situation have done so with no pay raises or cost of living allowances for at least 6-7 years, our insurance was lowered to the point of being almost no good to us, and now we've been thrown out in the cold literally with nothing to show for our loyalty. Do we have any rights here, or are we just out of luck? Thanks for your time.
 


ecmst12

Senior Member
With what money do you think this company is going to be able to pay a 90 day severance to all employees? Do you understand what BANKRUPT means? No law requires you be given severance at all.
 

cbg

I'm a Northern Girl
Was this a legal closing Yes.


and shouldn't we at least be entitled to 90 days' of pay in lieu of notice as a severance package?
Not under the law, no. Severance is not required by law in your state and by your description, WARN would not apply here so there is no pay in lieu of notice requirement.

We had to fight just to receive our remaining vacation pay, but no one has received anything else.
Congratulations on receiving vacation pay. That is not required by law in your state either.

Ironically, the former employees who actually mismanaged our company into this spot were all let go months ago and each received a nice severance package and the offer of retraining. Months ago, the economic situation was very different.

Those of us who remained with the company out of loyalty and did our best in a bad situation have done so with no pay raises or cost of living allowances for at least 6-7 years, our insurance was lowered to the point of being almost no good to us, and now we've been thrown out in the cold literally with nothing to show for our loyalty. That's a shame, but no laws have been violated by your description.

Do we have any rights here, or are we just out of luck? You're just out of luck.
 

mustang.2006

Junior Member
With what money do you think this company is going to be able to pay a 90 day severance to all employees? Do you understand what BANKRUPT means? No law requires you be given severance at all.

I've thought about your response for two days before replying in order to be more polite than I would have been after first reading your post. I'm not an idiot and well understand the word BANKRUPT means. But I also understand that the finance representative guaranteed 90 days' notice if anything changed just days before the company closed down. And I also understand that the company is privately owned by a family who lives well above the level of those of us who worked so hard to keep their company afloat for all these years. We're drawing unemployment and food stamps and they are still living high on the hog, so to speak. The owner himself has a fleet of vintage cars that he's spent an average of $30k each to restore, and his son drives a $100k car along with a top-of-the-line SUV and a sporty little Cobra. So even if the LAW doesn't protect the ones these people have screwed over, shouldn't there be some form of loyalty to the little people who helped pay for these fancy cars and homes? We were loyal to them in the tight years, gave up our claim to pay raises and COLAs, and they've kicked us all in the teeth. Whatever happened to LOYALTY and fair play???
 

Zigner

Senior Member, Non-Attorney
I've thought about your response for two days before replying in order to be more polite than I would have been after first reading your post. I'm not an idiot and well understand the word BANKRUPT means. But I also understand that the finance representative guaranteed 90 days' notice if anything changed just days before the company closed down. And I also understand that the company is privately owned by a family who lives well above the level of those of us who worked so hard to keep their company afloat for all these years. We're drawing unemployment and food stamps and they are still living high on the hog, so to speak. The owner himself has a fleet of vintage cars that he's spent an average of $30k each to restore, and his son drives a $100k car along with a top-of-the-line SUV and a sporty little Cobra. So even if the LAW doesn't protect the ones these people have screwed over, shouldn't there be some form of loyalty to the little people who helped pay for these fancy cars and homes? We were loyal to them in the tight years, gave up our claim to pay raises and COLAs, and they've kicked us all in the teeth. Whatever happened to LOYALTY and fair play???

You have the wrong board - this is a LEGAL advice site...try hopping over to Dr. Phil's site - or maybe Oprah.
 

gbarney1904

Junior Member
Why is just about every legal advisor on this site so rude?

I come here just about every day and without fail I see rude and just unnecessarily insulting responses from the legal advisors here. What is wrong with you people? Are you so unhappy with your lives that you feel a need to bring people down even further? The people who write to you are in true trouble and need not only legal advice but also a bit of human kindness. I just don't get it and would suggest anyone who needs any form of advice to look elsewhere. Also, some of your advice seems a bit suspect and I'm not at all sure you know what you're talking about.
 

Silverplum

Senior Member
I come here just about every day and without fail I see rude and just unnecessarily insulting responses from the legal advisors here. What is wrong with you people? Are you so unhappy with your lives that you feel a need to bring people down even further? The people who write to you are in true trouble and need not only legal advice but also a bit of human kindness. I just don't get it and would suggest anyone who needs any form of advice to look elsewhere. Also, some of your advice seems a bit suspect and I'm not at all sure you know what you're talking about.
I'm sure YOU will do SO much better than all of us have!!!

Get to work, right now. You have a LOT to do!!
 

ecmst12

Senior Member
Did you get your guarantee of notice in writing? If not, it's meaningless. Yes, it sucks that they lied to you....but that's not illegal.
 

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