Employer is closing down the business. What as an employee do I need to know or do?

Question

I work for a small local company in NYS and the owner has notified me he is closing the doors. The company has been in trouble over the past year. I am the Office Mgr. and he is not informing anyone else until the day he shuts the door. I have 3 weeks of vacation which according to our handbook should be paid upon termination for any reason. He told me he will not honor paying vacation time. As well, I am very worried he may just shut the door and not pay the last payroll checks. I had already given him a month's notice before he told me this. I begin a new position the first week of Sept. (which I cannot move up). I was counting on the 3 weeks vacation upon my leaving. I have never worked for a company that has closed. What do I need to know? What should I make sure I have done? Can he legally hold back my unpaid vac. time? If we don't get a final check, what can I tell the employees to do? Any help would be appreciated!

Answer 1

If you have your vacation time documented I would take your vacation time right now.  Use the time to look for another job.

It sounds like this guy is a real piece of trash and will probably try to s***w you  and everyone else in the end.  If he is purposefully running the company into the ground their may be some criminal charges involved.

I am a little confrontational so I would probably say something to the guy.  Not notifying his workers is immoral at best.

You should document as much as you can.  Grab a copy of the handbook print out any helpful emails.  Keep a journal when you speak to the owner and write down what he says.

I would think that when he closes he doors he is going to file bankruptcy.  In that case the employees become a creditor in the bankruptcy hearing.  That is why you need to have everything documented.

Good luck.

Answer 2

Take that handbook and call the local Labor Board and inform them of your situation. Then I would call the local unemployment office. The workers need to know ahead of time so that they can get their resumes ready and start looking for new jobs. The Labor Board can help you better and refer you to any other places. But I would definitely start there. What your employer is doing is illegal. If you do not get your final check you could always post a lien against him and his property and you can do that at the courthouse. You could also sue him. He is not very ethical and you need to cover your butt and the other employees'. Please call the Labor Board.