That seems like a tacky, cowardly, very rude way to communicate big news to your workers. I hope there is a back story and the workers had been being prepared for the news.
Last edited by Maurice Mcmurry; 11-27-2022 at 6:34 AM.
Notice that ALL BENEFITS were terminated without COBRA benefits. This means all employees lost health coverage immediately, without recourse for coverage. Sick, pregnant, planning surgery, etc, forget it! Oh yeah, Happy Thanksgiving - signed United Furniture Tech. (AKA Lane Furniture.) I'm sure it was a difficult decision for management. The drivers out on the road had two choices, either complete their trip back to warehouses, or abandon equipment where it was and hitch a ride home. If you did the latter, what is Lane going to do? Can't fire you, as they had already done that.
I thought it was required by federal law that COBRA benefits are automatic. Sure there will be some legal investigation on that.
George
Making sawdust regularly, occasionally a project is completed.
When I clicked on the link to look, there was a big ad right in the middle for Hinckley yachts.
I saw this story a few days ago. I dont understand the immediate termination of benefits and no COBRA either. I also thought the WARN Act would apply. But WARN is a complex story from what I gather in a quick look. I'd have to bet the company lawyers studied it up and down before the Board pulled this stunt and think they qualify for an exception. Still a really crappy thing to pull (though we've seen it before).
If interested, I found a few bits on the Dept of Labor page on WARN Act:
* Certain mass layoffs and plant closings will meet the criteria of the Worker Adjustment and Retraining (WARN) Act; the criteria are complex, but some basic levels are layoffs of 50 or more workers at a single site, where 50 is at least one-third of the total full-time workforce at that site, or any layoffs of 500 or more workers at a single site. Other times employers may publicly announce layoffs through the media.
* If an employer believes their situation is the result an economic crisis, it may apply the unforeseen business circumstance exception; however, there could be a burden on the employer to prove why it could not plan 90 days in advance.
Last edited by Frederick Skelly; 11-27-2022 at 9:04 AM.
"All that is necessary for the triumph of evil is that good men do nothing."
“If you want to know what a man's like, take a good look at how he treats his inferiors, not his equals.”
I looked into this one time. From what I remember, COBRA only applies when the company is a going concern. What COBRA allows you to do is "tag along" on the company's existing health insurance policy. When that policy is terminated, perhaps when the company closes or declares bankruptcy, there's nothing to tag on to.
I agree that the company really did their employees wrong. I can imagine someone who is being treated for cancer, or has a life saving surgery scheduled (maybe a heart procedure) - they're going to be in a world of hurt.
Mike
Go into the world and do well. But more importantly, go into the world and do good.
I wonder how soon before the auctions of tools and lumber? I read they have their own metal stamping plant which may be sold as a separate business.
Bill D
My Father’s sister was married to a guy who was the “company treasurer “. The closing of the company was caused by acrylics and Nylon stuff. Not mean people.
Unless they ran their finances out to the end, the least they could have done was provide 6 months of health insurance - to give people time to find another job that has health insurance.
People who have existing conditions essentially can't purchase a health insurance policy - or it's so expensive they can't afford it.
Mike
Go into the world and do well. But more importantly, go into the world and do good.
Something certainly smells fishy to me.
Last few months I saw ads for Lane hiring, then to abruptly fires everyone.