Employee Benefit Questions when a Company is Sold

[Ultrarunner]

I'm in uncharted waters...

Starting paying into Social Security, etc... at age 12.

Never made a claim or taken a paid sick day in my life... always thought it would be there if I needed it...

Looks like the best scenario is starting over and the least is unemployment...

[Houston3]

Originally Posted by Ultrarunner

Does this sound typical for those that have been through it?

Employee's are encouraged to apply for their positions and it is rumored re-applying is only a formality

All employees will start out as new employees... drug testing, employment application, background check. (Non-Union)

Existing Employees with Paid Time Off (vacation time) will be paid for the hours on the books... no other options.

Many would actually prefer time off since no one has been able to use vacation the past 9 months... (Moratorium)

Consequences or negative tax consequences in getting a lump sum for accrued vacation hours?

Existing Employee's will loose all sick time in the extended illness bank... majority have the max of 480 hours... apparently, there is no way to preserve this benefit? Is this correct?

As a "New" employee, the rate of PTO accrual will also be reset... so someone with 15 years on the job at the same desk will have the same as someone with 1 year with the company.

Some employees may be offered independent contract positions instead of employee status... especially those that must be available on call 24/7

Some employees have 20 plus years on the job... the company is making money... no packages have been offered and none are expected except for CEO and CFO. Local companies typically offer one week pay for each year on the job in the industry.

Lastly... what happens to on going medical treatments or those on maternity leave when Insurance Coverage is switched... new deductibles... no coverage for per-existing?

There was a guy here in Houston that would buy up printing companies fire everyone tell them to reapply for a job and if hired they were like any other new employee.. They had to start over from the bottom..

He bought the largest and oldest printing company and closed it to never reopen and sold the land..

It got so bad the he had to have armed bodyguards where ever he went..

[Houston3]

Originally Posted by kodaka

I can't answer all of the questions, but a good friend of mine worked for a company that was bought out when she was six months pregnant and the new insurance policy wouldn't cover her pregnancy. Unfortunately her husband was laid off at the time. He managed to find a job and add her to his coverage only a few weeks before she delivered. The pregnancy was high-risk and if they hadn't gotten coverage they would have been ruined financially. So I would say yes, pre-existing conditions and maternity leave coverage could be dropped.

Unless the company is in a state like Maryland which prohibits pre-existing clauses for everyone.

They would have had to cover her in Texas... Unless it has changed in the past couple of years..

[michellem21]

i work for a storage company for almost 2 years now and now they sold it to a new storage company and they are still under negotiations but they have some manegers working here already from their company and telling us what to do and changing the rules and they even change the computer sofwear so now we have to lear a new system ! their system in their other companys, and they are romers that we are getting layid off and they are bringing their onw workers here! so do they have the right to do this changes even if their lowne hasent gone throw?

[kodaka]

Originally Posted by michellem21

i work for a storage company for almost 2 years now and now they sold it to a new storage company and they are still under negotiations but they have some manegers working here already from their company and telling us what to do and changing the rules and they even change the computer sofwear so now we have to lear a new system ! their system in their other companys, and they are romers that we are getting layid off and they are bringing their onw workers here! so do they have the right to do this changes even if their lowne hasent gone throw?

A company has the right to change anything at any time. They don't have to wait to be bought out to do so. Changing software programs is hardly a big deal, IMO. Companies also have the right to lay off employees. They do not need approval from a bank or anyone else to do so.

When buy-outs and mergers happen, rumors become rampant. Rumors of layoffs are ubiquitous. There's no use playing into that rumor game. Rely on facts and if you don't have the facts, don't make them up.