What rights does my husband have to severance pay if he worked for a company that closed their doors in the middle of a shift?

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What rights does my husband have to severance pay if he worked for a company that closed their doors in the middle of a shift?

The company employed 200 people and did not give any notice as to their closing. They all received Warnletters and were told they would not receive any severance pay and may not get their vacation time paid. It had not been decided yet. We are curious as to what rights he has since they were not given the normal 60 days notice?

Asked on July 1, 2011 under Employment Labor Law, Arkansas

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Unfortunately, your husband may not get severance pay if the business has folded. Further, he may not get the vacation pay or any other pay to which he is entitled if the business decided to simply up and move. What needs to happen here is how quickly this company either files bankruptcy and whether monies owed to employees would be considered dischargeable debt. You need to do some research and find out if the company has any insurance to cover such a situation. Contact the Department of Labor in your state, file for unemployment and see if you can get any insight into the issue of vacation pay and so forth. You may have to wait a while until full payment but if you act fast and properly you might be able to get payment.


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