CAN A EMPLOYER DECIVE TO GAIN?

Question

My husband worked for a company that recently sent them letters saying they were in financial trouble and unless they took a cut in pay and benefits, then the company would have to close. Well my husband had to find other work because we could not afford the cuts. Now the employees that stayed has gotten a raise and we are having trouble getting our retirement from the company. Is this legal to decive employees to get them to quit.

Answer 1

As I see it nobody was decieved into quitting. They were given the option. So the ones that did take a cut in pay and benifits are being paid back for their loyalty to the company, now that they are back on their feet. How long did it take the company to get out of financial trouble?

Answer 2

I don't see this as a tax question.

It's POSSIBLE that enough people quit, and the remaining people are still doing the same work (no offense intended to your husband, and no implication that he wasn't doing a good job), perhaps by working unpaid overtime, then the company may now be economically viable.

In California, there's a law that a business can't have a going-out-of-business sale _more than once a year_ unless they really are going out of business, the implication being that the sale made them enough money that they could remain in business.

I really don't think you have a case for deception.

As for retirement, though, if he's vested in the retirement plan, he should be able to collect from it.