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COBRA coverage is required to be offer to terminated employees the same as offered to active employees. If all employees are terminated and there are no more active employees received health care , there in no requirement to offer COBRA coverage. Normally executives are under a different plan so doesn't count as an active employee.
Health insurance is provided under a company policy that normally has the ability to be cancelled immediately by the employer. So the idea that health insurance is only by the month is false. Most insurance is paid in arrears meaning employees pay as they go or are behind, not in advance. So if a company terminates the plan today, the employees are SOL going forward.
Once a grocery wholesaler encourages its employees to borrow from their credit cards to buy grocery and distribute them to retail stores,the wholesaler folded and employees are stuck with their cc loan
I worked for a ritzy country club in the 80's. We worked Saturday, everything was normal and I was one of the first people to work on Sunday am (golf course). When I got to the clubhouse door, my key didn't work. Developer pulled the plug, he changed the locks and never told anyone. It was a hard line tactic to get the residents to takeover the expenses of running the money pit of a golf club.
It worked, club was back open in a few days.
Sorry the furniture folks lost their jobs but they had to see the production was down, things weren't great so they shouldn't have been surprised.
When I was doing factory work, albeit forty plus years ago, you could always see the signs. More people would be sweeping floors or doing cleaning, a machine (this was a glass bottle plant) would be idled, packaging for common containers that had multiple buyers would be short and the product would be packed in unmarked boxes.
The only thing close to that that's happened to me is that I got hired for a brand new retail store that was opening in a big outlet mall. We helped set up things, hung the clothing & other merchandise on all the racks, etc.
All of a sudden, many or most of us were no longer on the schedule. They just hired a lot of us to help set the store up, then let us go. Of course they're not going to tell us their dirty-trick plan back when they're interviewing us.
The means of laying people off via text isn't new, and middle-of-the-night closures also isn't new. But the directions to truck drivers to return with cargo undelivered is a bit unusual (presumably the dispatchers were also laid off, leaving the drivers without guidance on how to get from their overnight stop to the designated return site?).
It appears that not only is the company violating WARN Act requirements, but also violating COBRA regulations. I'm also curious how they arranged for employees group health insurance to be terminated mid-month--perhaps they were already behind on premiums?
There's no arguing that this was a terrible thing to do, but it seems that this company was in severe financial difficulties.
They could have done it during the next business day. There’s no excuse for treating folks like this.
They could have done it during the next business day. There’s no excuse for treating folks like this.
That's right. There's no excuse for treating folks like this. But they did it anyway. They were/are either cunning or coward. They planned it that way. If they declared to all 2700 employees to be fired the next business day, there would be a big chaos/riot - I think/believe. They would not be able to handle that. They could not face the employees in person. So sad for the folks.
My Company closed a call center all in one day. It was mayhem. People crying, screaming everywhere. That was 1500 workers. They just laid off 750 again and did it all hush hush, a couple here a couple there. Word still gets out.
Given the speed and that it was everyone, I would imagine there's no more money...and possibly hadn't been for a bit. Rule of thumb as a Controller is you always have to make payroll. Easiest fraud is to say bills are paid when they really aren't. They didn't give a WARN notice, they're illegally not providing COBRA coverage...likely because coverage has been lost for lack of payment on past benefits. If top management was fleeing right before this hit, my guess is a fairly material surprise shook the company and they realized they were bankrupt. Ironically, it is possible to be too poor to go through bankruptcy.
Someone is likely going to jail.
I feel bad for the workers. OP keep updates if you see them.
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