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  • Subject: Re: Midrange Computing Closed
  • From: MacWheel99@xxxxxxx
  • Date: Sat, 28 Jul 2001 01:26:27 EDT

>  Al Barsa said:
>  > All of
>  > the employees were terminated yesterday, and they're all 
>  > looking for jobs now.  They got no severance, or anything.

MccalliM@Midas-Kapiti.com  asks
>  Is that legal in the States?  It wouldn't be here (UK) -- at least for
>  employees who had  two years+ service.

It is possible that they are in violation of state law & will be fined 
humongous bucks, especially if someone makes sure to inform the State's 
Attorney General what they did.  (hint hint)

In most states of the USA, when a company plans to shut down their 
operations, they are required by law to inform all their employees 60-90 days 
in advance (how many days varies with the state) and also to notify the state 
that they will be doing this, because the state is going to suffer a big ding 
on their unemployment compensation, and a reduction in their payroll taxes, 
and states like to budget in advance so there will be no surprises.

If the company's total work force is sufficiently small, the state government 
may be oblivious to the fact that the company is in violation of what laws.  
After all, US laws are so complicated that it takes a lawyer specialist to 
figure them out, which are too expensive to be populated in many government 
beaurocracies.

It is possible that the fines that will be imposed on the company will 
obliterate the profits that they made for the last few years.  However, this 
does not help the employees who got the shaft.

This is why the process of closing an enterprise requires legal advice from 
lawyers who are expert in the rules for the particular state & other levels 
of government where the company is located.

MacWheel99@aol.com (Alister Wm Macintyre) (Al Mac)


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