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Company is folding - no apparent severance; can I withold company property?

  • Thread starter Thread starter zxspectrum
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Z

zxspectrum

Guest
The company I work for is failing to be funded and is planning to lay off about 2/3 of its staff. Due to their lack of thinking, we have already been told we will be layed off but it has not happened yet. However due to lack of funds they either plan to give us no severance pay (and no compensation for 1 extra week of work since the last paycheck or the paid vacation remaining) OR they are planning to file for chapter 11. I have physical control of a company laptop, can I withold it towards my unpaid wages without fear of prosecution?
 


cbg

I'm a Northern Girl
Absolutely not.

They must pay you for the time worked and if they fail to do so, contact the DOL.

Whether they must pay you unused vacation time is a matter of state law - you have not indicated your state so I cannot tell you if it is mandatory in your state. Your state DOL can tell you or if you post again with your state I can probably tell you. If it is mandatory in your state and they do not pay it, again your resource is the DOL.

Severance is not mandated by any state or Federal law; you have no guaranteed right to it unless you are under a contract or CBA that says otherwise. No recourse there.

However, you may not under any circumstances withhold their property and escape repercussions. It's called stealing. Their violating one law (withholding pay) does not give you the right to violate another.
 

cbg

I'm a Northern Girl
The state of Florida requires the payout of vacation time unless there is an express agreement to the contrary.
 
Z

zxspectrum

Guest
Thanks cbg for your help. Can you please point me to a document that describes exactly this (paying off the remaining vacation time). My employer finally laid us off today (I was not present and have not signed any papers yet) with no severance pay, just the past week's pay (the week we worked) and this week until Friday. Much appreciated.
 

cbg

I'm a Northern Girl
I couldn't find a specific statute but here is some case law: Community Design Corp. v. Antonell, 459 So. 2d 343 (1984).
 
Z

zxspectrum

Guest
Thanks. To add a specific twist to the case:

I was officially laid off today but I was not present. I was informed of the (expected) layoff this noon over the phone. I was told I have to return any remaining company property tomorrow and sign papers of confidientiality, in order to receive my termination papers (not for "cause") and thus be able to file for unemployment. Since I suspect I will be giving up my rights under the WARN act and give up potential compensation, can I refuse to sign any papers and STILL be given my rightful termination papers ?


cbg said:
I couldn't find a specific statute but here is some case law: Community Design Corp. v. Antonell, 459 So. 2d 343 (1984).
 

cbg

I'm a Northern Girl
Not all layoffs are subject to the WARN act.

It depends entirely upon what they are asking you to sign, and also what you are referring to when you say termination papers.
 
Z

zxspectrum

Guest
Out of a staff of 127, 84 were laid off. Severance pay: 3 days (till the end of week). No vacation time is being paid (e.g. I have 10 days left). Paperwork involves signing a non-disclosure agreement and the layoff is tagged as 'temporary' (with the intention to rehire when/if the funding of the company suceeds). Any ideas? I would like to keep my options open and not give up my rights, I hope it's feasible to get an 'horonary discharge' so to speak without surrender :D
 

cbg

I'm a Northern Girl
Even the numbers do not necessarily trigger the WARN Act, if the reason for the layoff was unforeseen.

If the only thing you are being asked to sign is an NDA, I frankly don't see the problem. An NDA isn't asking you to give up any rights.
 

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