FAQ

COVID-19 Job Loss

Employers during the pandemic used fuzzy words to describe layoffs, calling them “temporary” or “furloughs.” But these words have no clear, legal meaning. They give no firm indication of when, or if, you’ll ever go back to work. Employers may prefer saying: “You are furloughed” instead of “You are permanently terminated.” But this leaves the employee hanging, stressed and confused as to what to do next. Employees may be afraid to do anything to jeopardize their being recalled – even filing for unemployment insurance. They may hesitate to file a WARN Act claim. That is unfortunate, because that law’s purpose is to provide notice that avoids confusion. Employees are supposed to be told in advance what is going to happen to them under that law and be given up to 60 days’ backpay and benefits if 60 days’ notice is not given.

Under the WARN Act, if an employer realistically has a plan to restart, then great. It usually will inform employees the layoff will end at a certain time. But, if no dates are mentioned, that suggests the employer has no realistic expectation of when a recall may happen. The employer may be dangling terms such as “temporary” or “furlough” around, just to keep employees frozen in limbo. That may suit the employer. It preserves the workforce intact, ready for later rehire. It does not help the employee, however, who needs clear, truthful information, to plan and seize every opportunity to make a living. Employees should be entitled to take advantage of unemployment insurance without guess work. They should be able to take advantage of the laws that protect abruptly terminated employees, including the WARN Act.

· If you work in California.

The test is easy. If you are let go from work for more than two weeks without pay, and you did not receive advanced written WARN notice, you may be entitled to 60 days’ pay and benefits, assuming your site is covered by California WARN. Raisner Roupinian is here to guide you.

For those outside of California, let’s take a closer look at your “temporary” layoff or “furlough” to see whether you have, indeed, suffered a job loss and have a WARN claim.

If the notice says something similar to “furloughed until the end the month” or “for 90 days” or that you are expected to be recalled on or by a date within the next six months, you are likely in a temporary layoff with no WARN Act rights – but you should verify that with an attorney. If you are not reinstated by that date, then it would be advisable to speak with an attorney because you may have a WARN claim.

If your wages cease, and the notice expressly states that you may seek unemployment insurance, then you will likely be eligible to receive it. If it does not state anything about unemployment insurance, then you should seek guidance from your state agency. If wages do not cease, you are probably still employed – even though you are not being called in to do work.

Many notices are vague. They say you are “furloughed until further notice” or “temporarily.” Words such as “we hope to recall you soon” or in the “near future,” sound hopeful but create maximum flexibility for your employer, and maximum uncertainly for you. Here, we must read on and carefully look at all the circumstances. Context will be important. To determine whether you have lost your job and can take steps to receive WARN back pay for lack of notice will depend on whether or not you have a “reasonable expectation of recall.”

In most courts around the country the “furlough’ or “temporary layoff” will be deemed to be a “permanent” or “temporary” based on whether the employees are given a reasonable expectation of recall. Courts will consider the employer’s communications (as well as whether wages and benefits ceased). It may also depend on the employer’s policies and practices, industry standards and other factors. For example, if it is a seasonal or recurring break that lasts a few weeks, that would probably be temporary – because there is a reasonable expectation of recall. If there is no pattern, and there is no sense as to when the break will end, then it probably will be considered a permanent termination of your employment.

In other words, the court will determine your status based on what your reasonable understanding of the message was – you and your reasonable co-workers. If you have no reasonable expectations of being recalled, then the kid-glove words of “furlough” or “temporary layoff,” that suggest a possible rehire that may hopefully, wishfully occur in the future – will not control. For all practical purposes, you probably were terminated the day your layoff started. You may then be entitled to WARN Act pay of up to 60 days and benefits. You may also be eligible for payment of your unpaid vacation or PTO. You may be entitled to other penalties as well. You – or someone in your group – should speak to an attorney. Raisner Roupinian LLP can represent you and will speak to you at no charge. Simply complete the confidential message form below.

Job Loss in Bankruptcy Q & A

Not necessarily. It may depend on the type of bankruptcy it files. Bankruptcy usually takes one of two forms: reorganization under Chapter 11 of the Bankruptcy Code, or liquidation under Chapter 7, which means the dismantling of the company. In reorganization, the company continues to do business under court protection, repays its debts, and attempts to return to normal operations. Your job, pension or health plan may continue throughout the reorganization process. A company liquidated under Chapter 7, however, sells its assets to pay creditors and ceases to exist. A Chapter 7 filing will usually cause the prompt termination of both jobs and pension and health plans. For unprepared employees, that can be a catastrophic event (see question 5, below).

Until the petition is filed in bankruptcy court, that may be hard to predict. Many airlines and retail chain stores have been operating in Chapter 11 bankruptcy for years. Unfortunately, in today’s economic climate, bankruptcy often means going out of business. In the best case scenario, employees are “spun off” in a sale of the company’s assets to a buyer. Otherwise, employees typically lose jobs immediately, or are retained temporarily during the winding-up period. Given these heightened prospects of job loss, you might wisely begin searching for a new job once bankruptcy enters the picture. You might also consider taking financial precautions against the loss of your job and benefits.

In the best of times, employees have few means to challenge the loss of their jobs in downsizings, layoffs, or shutdowns. Beyond recouping unpaid wages and benefits (see below), employees terminated in a bankruptcy generally have even fewer options. At best, employees may hold some legal leverage if they: 1) have a contract claim; or 2) can show they were terminated in violation of specific job protection laws. While bankruptcy makes it harder to prevail and collect on these claims, one should seek legal advice before losing hope. Claims that have succeeded in bankruptcy include those brought under the WARN Act. The WARN Act provides awards for up to 60 days of pay and benefits to employees terminated in mass layoffs or shutdowns without written prior notice. Employers in bankruptcy have been ordered to pay WARN awards to their terminated employees. It is essential that you consult with an employment lawyer with expertise in this area to determine what rights you may possess.

ou may be able to collect up to $12,850 of unpaid wages and benefit contributions up to 180 days prior to the filing. The Bankruptcy Code gives priority status to this amount, enabling it to be paid ahead of other creditors. If the amount of your claim for unpaid wages and benefit contributions exceeds $12,850, however, the balance falls into the pool of general unsecured debt (non-priority) which may be paid at a discount or not at all depending on the assets available. When you receive your “proof of claim” form from the Court, you should indicate the amount of your priority claim up to $12,850 and unsecured claim. Unless you complete and return this form, you will likely forfeit these amounts. If you have any questions, you should seek legal advice.

Unfortunately, an employer that files for bankruptcy generally has the right to discontinue its health and benefits plans for current employees. The U.S. Department of Labor recommends that: “when your employer files for bankruptcy you should contact the administrator of each plan or your union representative (if you are represented by a union) to request an explanation of the status of your plan or benefits. The summary plan description will tell you how to get in touch with the plan administrator. Questions that you may want to ask include:

  • Will the plan continue or will it be terminated?
  • Who will be acting as plan administrator of the plan during and after the bankruptcy, and who will be the trustee in charge of the pension plan?
  • If the pension plan is to be terminated, how will accrued benefits be paid?
  • Will COBRA continuation coverage be offered to terminated employees?
  • If the health plan is to be terminated, how will outstanding health claims be paid, and when will certificates of creditable coverage (showing, among other things, the dates of enrollment in your employer’s health plan) be issued?

It is worth noting that under the WARN Act you may be entitled to 60-days of health insurance benefits, including reimbursement for any medical expenses, if your plan was terminated.

The WARN practice at Raisner Roupinian LLP would be pleased to answer questions specific to the facts of your situation. Ask for René Roupinian at (866) 544-9945.

1This does not constitute legal advice. Our firm provides legal advice only upon engagement with respect to specific factual situations.

Know Your Rights

Attorneys Jack A. Raisner and René S. Roupinian of the New York-based national employment law firm of Raisner Roupinian LLP provide aggressive advocacy for their clients laid off in violation of the Worker Adjustment and Retraining Notification (WARN) Act. Their job is to hold employers accountable when they callously disregard the rights of their terminated work force.

If your rights under the WARN Act were violated, Contact Us at 1-866-544-9945.

The WARN Act protects your rights. Companies who ignore the laws in mass layoffs and company shutdowns violate your rights. The job of seasoned WARN Act attorneys Jack A. Raisner and René S. Roupinian is to seek compensation when those rights are violated.

For a layoff to qualify under the federal WARN Act, the following must occur:

  • Employers must have 100 or more full-time employees who work more than six of the past 12 months and average over 20 hours a week (note that most government employers are not covered).
  • 50 or more laid-off employees at a site representing over a third of the workforce at a site are terminated (500 or more do not need to meet the 1/3 ratio).
  • 50 or more employees let go in a worksite shutdown.
  • Workforce reductions within a 30-day window are combined into one.
  • The 90-day rule combines two layoffs that may not meet the threshold individually.

If you are confused by the statutes associated with federal and state WARN Acts, you are not alone. Your best strategy is to consult with a seasoned attorney at Raisner Roupinian LLP. We are one of the only employment law firms in the nation, solely focused on WARN Act cases all over the country, and our practice of WARN Act litigation has taken us from New York to New Jersey and areas around the country, including Ohio and California.

What You Win – All States

According to the Federal WARN statute, you are entitled to 60 days of wages and benefits, including eligible bonuses if your layoff did not comply with the regulations. WARN applies in all states. States that have their own WARN Acts may provide additional money, particularly New Jersey. Many employers either ignore the federal or state statute or employ creative ways to try and get around it.

At Raisner Roupinian LLP, our attorneys’ experience and knowledge of the law provides us the insight you need to get the compensation you deserve.

To put it simply, keep your pay stubs and Contact Us.

In addition to salary, your now-former employer must compensate you for any terminated health insurance coverage, including reimbursement for medical expenses. That includes everything from prescription drugs to medical procedures. Sudden illness or injury following a layoff can put you in an unnecessary financial squeeze.

Our advice to you is to save your medical receipts and seek legal advice.

A severance package

A severance package may have never been part of your employment agreement. However, if your employer violates the Worker Adjustment and Retraining Notification (WARN) Act, you may receive similar compensation following the loss of your job. WARN Act attorneys Jack A. Raisner and René S. Roupinian of Raisner Roupinian LLP help clients throughout the nation, including New YorkNew JerseyOhio and California.

Get the compensation and benefits you deserve. Contact Us at 1-866-544-9945.

WARN Act lawyers Jack A. Raisner and René S. Roupinian can help. They will conduct an in-depth analysis of your claim, the strength of the case, and assess if there were any other employees involved. A seasoned attorney’s help is vital. There is no charge for a telephone consultation and, if your case goes forward, legal fees will not be assessed unless you prevail.

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