Thread regarding ITT Educational Services Inc. layoffs

If what's being said about the WARN act is right...then Carmel and Co violated it back in July when they laid off the Rep staff nationwide. But at this stage...who cares? We've all been seeing the warning signs since 2014 that our jobs were on shaky ground.

debt forgiveness, and you've got a heck of a bill taxpayers like you and me will be paying.

--why not sell the assets of ITT to pay it. Have the SR VP's wash dishes or cars for a week or two to raise money

As sad as this situation is for employees, you will be entering an job market that is much better than it was a few years ago, with the skills and completed education that will put you in a position that will generally result in your finding employment in relative short order. But what about that student who is 75% of the way through degree completion, facing a no-win decision relating to having to make a decision to abandon their education goal, and receive the benefit of student loan debt forgiveness, or struggle to find a technical school or college to complete their field of study and continue to be saddled with the expense of servicing student loan debt?

For most students, if recent history that dates back to April 2015 and the Corinthian Colleges demise is a good predictor, seeking debt relief will be their response. Who could blame them with debt that likely is in the high five (5) figure or low six (6) figure range. My understanding based upon news reports is IIT Tech has something like around 40,000 students. Multiply the number of students by the average amount of debt forgiveness, and you've got a heck of a bill taxpayers like you and me will be paying.

The school engaged in many unethical practices. They always put their numbers before education. Recruiters were aggressively and unethically bringing in anybody that was breathing and had a-- number in for enrollment.

This outcome was inevitable. I hope the bureaucrats that defrauded to get more because their 7 digit salaries weren't enough are happy.

This is a hard time for all employees and students. Wishing everyone the best and hoping students choose a better option. Remember to steer clear of any for-profit schools and make sure a regional accreditation is available.

But if Modany is trying to circumvent the rules in this way, isn't he going to be held liable anyway? Okay, so he didn't notify employees today, explicitly in writing, that they are being terminated on Wednesday. But, if employees do end up being terminated on Wednesday, isn't the act of depositing this "extra" check, several days in advance, essentially notifying employees of termination? I mean come on, instructing middle management to call it a computer glitch can't really be enough!

Isn't paying us a good thing? What would of happened if they waited till after they filed bk?

The WARN Act requires that companies provide 60 days notice to employees before ordering a plant closing or mass layoff if they have 100 or more employees, exclusive of part-time employees, or 100 or more employees who in the aggregate work at least 4,000 hours, excluding overtime.. Employers must also notify the state and the unit of local government in which the layoff or closing is to occur.

Unexcused failure to comply with the WARN Act notice requirements may render the employer liable for any affected employee’s wages and benefits for each day of the violation, up to 60 days. Even though part-time employees are not counted in determining whether a mass layoff or plant closing occurred under the Act, part-time employees are still eligible for damages under the Act. The employer may also be liable to the unit of local government for an amount not more than $500 for each day of the violation, up to 60 days. Violations of the Act can be costly for companies with a large number of employees.

There are several defenses provided by the Act for financially distressed companies. Section 2102(b)(1) of the Act, commonly referred to as the “faltering company” exception, provides that an employer acting in good faith to obtain capital that would have prevented the plant closure or mass layoff and reasonably believes giving notice pursuant to the Act would have precluded the employer from obtaining the capital is not liable for ordering a closing before the 60-day period concludes.

Similarly, the notice requirement is excused if, at the time notice should have been given under the Act, the cause of the closing or layoff was not reasonably foreseeable or was the result of a natural disaster

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Directors And Officers May Be Liable For WARN Act Claims

Having read up on the WARN Act it appears ITT HQ wants to use this "payroll glitch" to get passed regulations that require mass layoffs to occur before a bankruptcy filing. Not only are we getting no answers or even a basic acknowledgment from HQ (Thanks for nothing, Modany), they are going to bypass WARN regulations by laying us off on Wednesday, the day after they file bankruptcy. They knew what they were doing; we're all paid up through Tuesday.

We all deserve better than this. I work with amazing people who try their best to assist and instruct dedicated students; kind, caring, loving people who have tried their hardest. I really wish everyone the best.