The owner has complete control

[It's Me]

What is the name of your state (only U.S. law)? New York
I work for a very small company (seven employees, including the owner and myself), and the owner is a one-man show. He is the HR Dept. and the Treasurer and the Accounting Dept. He pays all of the bills and signs the paychecks. We don't have direct deposit. No one else in the company is an officer. I was wondering what would happen if the owner died suddently in a car accident or something. What would happen to the company? Would we, the employees, be responsible for paying the office rent, telephone bill, etc.? None of us are authorized to talk to his bank or our health insurance company.

What do people do in a case like that? I guess you can see why I couldn't ask the owner what would happen if he died, but really, do any of you know what would happen to us? And if the answer is that we would be SOL, then why would anyone want to work for a small company totally controllled by one person?

Thank you so much in advance for your attention.

 

[ecmst12]

If it isn't specifically provided for in his will, then it would be up to his next of kin.

 

[tranquility]

the employees would never be responsible for the bills, but what would happen next depends on many factors including the business formalities.

 

[It's Me]

Thank you very much for your responses. I had no idea that this might be covered in his will. I don't even know if he has a will, and there's no way I could ask him.

Would it be too much to hope for things to change? I mean, companies used to be able to ask you if you were single or married when they interviewed you, and now, they can't. Maybe someday it will be okay to ask an interviewer what would happen if the owner died suddenly. It's something no one wants to talk about, but it must happen sometimes.

 

[ecmst12]

Working for a small business has pros and cons. If the owner were to die before retiring, either the business would be taken over by someone else, sold to someone, or dissolved. In the first 2 cases, you might or might not keep your job, in the 3rd you would definitely lose it. If the owner lives to retirement age, the same 3 (very basic) possibilities apply. It shouldn't be a big deal either way, since 99% of the country's employees are at-will and can be fired at any time for any reason not specifically prohibited by law. Job security is never a sure thing. But having to find a new job is hardly the worst thing in the world. You'd likely qualify for unemployment, too.

 

[cbg]

I think you are way, way, way overthinking this. C'mon, seriously, how likely is it that the owner will suddenly die? Sure, it COULD happen. But why is this suddenly such a major concern? What makes you think that the owner has not made some kind of provision for the company's survival? If he cares enough to start the business in the first place, it's likely that he cares enough to see it through, if only for his family's sake.

There are thousands of companies that are owned and controlled by a single individual. (My husband owns and is sole controller of a company smaller than the one you describe.) How many of them do you think have owners that suddenly die? How many of them do you think are foolish enough NOT to make some provision for the company in the event of their death?

 

[It's Me]

Thank you very much for your responses. It's just that a lot of people who are married and have children die without having made a will, so it occurred to me that maybe the owner of the company didn't make provisions for the company. And I don't even know if he has a family (I can't exactly ask him, can I?), so I'm not sure that he made provisions for his family's sake if I don't even know if he has a family. If it is allowed to ask your company's owner if he's married or has a SO or has children, please let me know.

 

[cbg]

Quite frankly, what will happen to the company in the unlikely event of the owner's death is none of your business.

NO ONE, especially in this economy, has a guarantee of continued employment. Unless you have a bona fide contract that guarantees a particular term of employment, any of us could be out on the street tomorrow. You're no different from the rest of us, even in large corporations. And the same will be true no matter where you work. You're bending yourself out of shape wondering what will happen in a one in a thousand situation? Here's a better idea - be thankful you have a job at all. There are plenty of people who don't, in case you haven't noticed.

Is there a law preventing you from asking if the owner has a family? No, there isn't. Is it a good way to get fired? Yes, it is.

 

[eerelations]

Would we, the employees, be responsible for paying the office rent, telephone bill, etc.?

While you might be out of a job if the owner suddenly dies, you definitely won't be responsible for paying the company's bills.