http://www.phillyburbs.com/news/news_details/article/175/2009/october/14/inkstop-closes-faces-lawsuit-over-back-pay-1.html
The company InkStop closed all of the chains of stores suddenly on the first week of October. They closed their stores owing a number of employees three weeks worth of pay. InkStop’s board sent out an email to their former employees saying that the chains had closed so that they could begin to think of ways to better the company. In the email the board also stated that the individuals would not be getting the three week pay that they were owed to them and that their health insurance premiums were not paid for the month of September. Inkstop now faces a lawsuit from their employees in which they owe money to.
This is such a horrible situation, but sadly it happens a lot now with the economy the way it is today. People are losing their job left and right and then scrambling to find a replacement job so they can continue to pay their bills on time. It is truly just an awful situation.
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I'd think the owner(s) of the company would have to pay their employees missed pay-checks due to some sort of working contract. Unless the company was incorporated, then it might be the company its self that is liable for the missed paycheck. I suppose if a company is no longer around and that company is considered the "person" that's liable for the employee's missed paychecks, the employees have nowhere to turn.
ReplyDeleteThe employees performed a service and should be compensated for such. They have every right to sue the company and/or owner for both the salary due and medical insurance coverage, especially the employees paid a portion of the medical insurance. Any person who used the medical coverage in this time period may receive extensive bills from the provider. InkStop should be liable for this as well as the salaries due.
ReplyDeleteLeaving the individuals without medical coverage could be more significant than the missed 3-weeks of pay. I know from personal experience that it is very difficult to obtain medical coverage as an individual (that is affordable) without continuing a previous policy. It took me 4 months subsequent to getting laid off to obtain medical coverage for my husband and I. Luckily, the insurance company ccnsidered it continuing coverage and not new. My heart goest out to all the employees of InkStop especially in this economy.
Isn't the employer to be held responsible for COBRA- the extended employee health insurance after termination? In the short run the employees may have a hardship, but it seems that if there are any assests at all in the company,the employees would be in line to receive their contracted portion - including compensation for COBRA.
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