4 ms·
Every time I see a company go belly up and the employees get screwed I wonder why there's not protection for this. IMHO regular employees should be treated as
by cletus 8y ago
Every time I see a company go belly up and the employees get screwed I wonder why there's not protection for this.
IMHO regular employees should be treated as creditors of first priority for unpaid wages/salary, PTO and any IRA/401k benefits. This should probably include COBRA health insurance for some period of time (this may already be covered?).
This means paying regular employees should come ahead of repaying investors, banks, bondholders, etc. And this should be mandated by law.
Likewise unused PTO should be paid out for all employees who leave a job.
- whatok 8y agoIn almost any case, employees who have unpaid wage claims are treated as secured creditors. I'm not sure what you mean by IRA/401k benefits as these are usually employer administered but held by the employee and should be shielded from any sort of bankruptcy. As mentioned earlier here, PTO is treated differently state by state. Most of what you have a gripe with is already covered by existing bankruptcy law. Sure, if there's no recovery value in a bankruptcy, employees aren't going to get paid back wages but no one else is getting paid either.
- patmcc 8y ago>>why there's not protection for this. Because the people who own companies have a lot more power and influence than the people that work for them, and the politicians write laws that reflect this.