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550 Employees laid off, two weeks pay denied & charged for medical coverage.

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posted on Oct, 2 2009 @ 11:27 PM

A retail store chain called Inkstop which has over 150 stores and over 500 employees closed its doors today (October 2) rather abruptly for an undetermined period of time, announcing in a letter: focus on a restructuring plan in an effort to improve the overall operations of the organization. All employees are laid off until further notice.

Here's the kicker. Rather, the kickers....

First, the employees are owed pay for the last two weeks. They won't be getting it at least for the time being...

Paychecks will not be issued on Friday due to our cash constraints. We are working on a plan to improve our cash flow situation and re-open under better circumstances.

Second medical coverage was only paid up to the end of August...

This is the initial notification that the September premium has not been paid. Therefore, your last day of coverage for the qualifying event is August 31, 2009.

from all appearances with no prior notice to any employees.

They added,

COBRA will not be available as there is no group sponsored plan.

Corporate letter to employees fro

I have one question. Do you think that the company executives have worked the last two weeks without pay or medical benefits?

This is beyond unbelievable. I don't know what to say. Over the last few months I've become pretty darned enured to most of the crap coming down the pipes from corporate America, but this just pisses me off. And I don't even work for the company.

[edit on 2-10-2009 by incoserv]

posted on Oct, 2 2009 @ 11:34 PM
Why not visit Inkstop's contact page at their web site and tell them what you think of a company that would do that to its employees?

Inkstop's Contact Us Page

I think some pretty vehement hate mail is in order!

[edit on 2-10-2009 by incoserv]

posted on Oct, 2 2009 @ 11:35 PM
This doesnt sound legal to me att all and I would encourage all affected employees to contact state and federal labor agency's immediately.

posted on Oct, 2 2009 @ 11:43 PM
It is illegal...thats what the board of labor is for. I is illegal for anyone to work for free,a nd with business, at least hourly paid employees, by law, MUST get payed for the times they were on the companys clock. Sounds like thier hoping some of those employees just leave and forget about that paycheck* usually, as far as i know. paychecks are to voided after 90 days* so they better call time to time at least to the corporte ehadquaters, and make sure their gunna get thier dues!

posted on Oct, 2 2009 @ 11:49 PM
This sounds like the deal with Braniff Airlines. The CEO was trying to raise cash to meet payroll and finally realized he couldn't. It's unlawful for a business to continue to operate knowing it can't pay its' employees so they shut down suddenly.

It really hurts the people but there's no cash left to pay anybody and they've got first claim on any if it turns up. My heart goes out for them.

posted on Oct, 2 2009 @ 11:50 PM
They can sue and get their two weeks or wait a month and see if the doors are going to reopen, get paid and resume work.

Or they can just say [snip] it, find another job, sue the company and get their 80 hours.

Either way is a good choice.

Mod Edit: Profanity/Circumvention Of Censors – Please Review This Link.

[edit on 3-10-2009 by 12m8keall2c]

posted on Oct, 2 2009 @ 11:55 PM
And just as a side note here I believe that its a felony to deny COBRA coverage.

posted on Oct, 3 2009 @ 12:20 AM
Unfortunately, none of this is illegal if the company files for bankruptcy.

As for the COBRA coverage, I believe, not positive though, that the company has no say in whether or not one is eligible for it.
I suspect the company was only informing the employees that they would not be eligible, not actually denying the coverage.

Still pretty poor way to handle it, but not illegal.

posted on Oct, 3 2009 @ 12:21 AM
"The chickens are coming home to roost!"
Oh, that ugly sounding black natiionalist said that.
Heh. He wasn't lying. People didn't want to hear it, though.
I have a problem with that guy who said that, because I believe he was speaking false hope and hate to his followers. Yeah, the chickens are coming home to roost, but the roosting chickens affect all of us, no matter what our color.

It's all of us.

If you want to take pleasure for somebody else of a different color or culture being brought down to your level, I understand that, but, it doesn't give you a higher elevation. If that is what it takes for you to all get together and improve things for all, then so be it. But all of you all get over "it" and work together for the betterment of all.

Dang man, a company just went tits up and all the people who worked there suffer epually.

Fight the power! Fight the power! Fight the power!"

posted on Oct, 3 2009 @ 12:24 AM

off-topic post removed to prevent thread-drift


posted on Oct, 3 2009 @ 12:49 AM
reply to post by incoserv

Well, now sounds like the perfect time to pass Cap & Trade.
It's a job killer!
Only 15 million people unemployed!
Lets bump that up to 25 million Obama!
Obama is a genius!
We are so fortunate to have such a brilliant man in white house.

posted on Oct, 3 2009 @ 05:26 AM
reply to post by incoserv

Unfortunately the company's actions were probably not illegal. Most state labor laws are written to benefit companies. That's why most states have "fire at will" statutes.

In Ashland, Ohio, near where I grew up, the local Archway cookie factory just closed it's doors one afternoon, right during the shift change. No notice. No warning. Nothing. Suffice it to say I haven't eaten an Archway cookie since.

posted on Oct, 3 2009 @ 06:24 AM
They might as well file for bankruptcy.
Because they just burned there bridges with there employees and the public.
who is going to do business with a company that first may not be there next week. and how many employees would come back.

The only thing that may be good about the not getting payed is many states have a one week period from layoff to when the unemployment starts.

And in many states there is a waver for employees that do not get payed till they do get there final check if ever.

In Calif state law is that employees must get payed all they are owed when they get laid off or fired.
Or the company must pay a penalty.
Also there are other legal recourses like placing a lien on the company property.

posted on Oct, 3 2009 @ 06:58 AM
My heart really goes out to the employees of this company.

Nobody has mentioned this yet, but the first thing that crossed my mind, is that the managment of this company out to be in jail for theft.

By not paying these people immediately when they shut the doors, to me at least, means that these people were robbed of time working for these people that they will never get back.

2 weeks they could have been out looking for other jobs, or doing whatever.

Money can be replaced, but time is something nobody ever gets back.

posted on Oct, 3 2009 @ 08:34 AM
The Long John Silver's shut down like that on the employees when I was living in Virginia. The managers didn't even know it was coming. They drove to work one morning and the place was shut down.

Then they bulldozed it and rebuilt it and hired new workers to replace those they shafted, and probably for a lower wage too.

posted on Oct, 3 2009 @ 08:49 AM

Originally posted by ANNED

In Calif state law is that employees must get payed all they are owed when they get laid off or fired.
Or the company must pay a penalty.
Also there are other legal recourses like placing a lien on the company property.

The penalty is probably cheaper than paying it's (former) employees.

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