Question my store Kmart close on September 2, 2018 all full timer got severance pay package. Now they telling us that due to chapter 11 we will no longer get our severance pay. Can they do this? October 15th was our last paycheck. We still got 6 or 7 paycheck left.
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Yes the severance package is much less when a company is in chapter 11. So sorry for you & your other associates. Kmart s---s big time!
If you are already drawing severance I believe they need to pay you. If you have not signed the papers to never sue, part of your severance agreement then no they do not have to pay you severance
Read the papers that you signed. Severance can be cut off anytime BK or not. Severance is not guaranteed or owed to you. Quote from the U.S. Department Of Labor: Severance pay is often granted to employees upon termination of employment. It is usually based on length of employment for which an employee is eligible upon termination. There is no requirement in the Fair Labor Standards Act (FLSA) for severance pay. Severance pay is a matter of agreement between an employer and an employee (or the employee's representative). The Employee Benefits Security Administration (EBSA) may be able to assist an employee who did not receive severance benefits under their employer-sponsored plan. Please contact EBSA if you have any questions.
Sorry, but you just got screwed by the bankruptcy process. They've cancelled all severance packages. You just because an unsecured creditor of Sears Holdings.