How to Obtain Wages/Vacation pay owed when Company Closes

[tvaughn]

Pennsylvania

My company (86 total employees) can no longer afford to pay employee wages and benefits and will be closing soon. There has been no official announcement, however, I am privy to info that confirms this. How can employees in this situation go about trying to receive wages and accrued vacation pay after closure? The company is also 3 months behind on paying medical insurance premiums and therefore, medical insurance will soon be cancelled and employees will recieve bills from the providers. Is the company liable for the payment for these medical/presciption bills?What is the name of your state (only U.S. law)?

 

[cbg]

IF the employer does not pay wages owed, a claim can be filed with the Department of Labor and Industry.

Vacation pay is not due on termination in PA unless a written agreement so states. If there is such an agreement, then that would also fall under the DLI.

As far as employment law is concerned, the company is not liable for any medical costs that are incurred due to the cancellation of the health insurance plan. However, it would do no harm to confirm with the state insurance commission whether there is any insurance law or contract law that might state otherwise.

 

[ecmst12]

Though, if the employer has been withholding pay for insurance premiums but not forwarding that money to the insurance company, causing there to be no coverage for the months the employee was paying premiums, those premiums are due back to the employee.