Thread regarding Corinthian Colleges Inc. layoffs

There is no legal requirement to pay more than minimum wage. lol

When it comes to cci handing out money you'd have a better chance getting a hand job from Jack himself..

No, enrollment counselor, that is not true and you know that.

Here you go:

http://articles.latimes.com/1996-04-21/business/fi-61156_1_severance-pay

"...there is no statutory requirement that an employer provide an employee who is being laid off with either two weeks' notice or severance pay."

http://humanresources.about.com/od/glossarys/a/severance_pay.htm

"No law requires an employer to pay severance pay. The Fair Labor Standards Act (FLSA) requires that an employer pay an employee whose employment has been terminated their regular wages through their completion date and for any time that the employee has accrued. This normally includes accrued vacation time, but not normally sick days."

Severance IS included in your limited definition provided....IF it is part of your employment contract. These generally are only available to unionized workforces with collective bargaining agreements, which are enforceable in court. CCI doesn't have that, and therefore, as previously stated and proven with 2 sources, severance is not guaranteed.

Just for good measure:

http://www.shrm.org/LegalIssues/StateandLocalResources/StateandLocalStatutesandRegulations/Documents/SeverancePayLaws.pdf

"In some states the laws for mandatory severance are only applicable to certain types of employees (educational, state or public employees, etc.) or in certain situations such as plant closings" i.e-UNION.

Time to grow up

Maybe I need to point out the word "severance" is included?

Right from the section: "(A) wages, salaries, or commissions, including vacation, severance, and sick leave pay earned by an individual; or "

I did, show me severance is mandatory in the event of bankruptcy? It isn't, and it won't be offered at that time.

"Yes, employees are after secured creditors"

CCI has $33 million in cash and cash equivalents while having long term debt of $76 million.

Something where no money is there to pay for and is not required to pay isn't going to be paid...hoping for that 2 week severance...LOL.

You will get your hourly wages you worked for in that pay period, but no severance. Please stop creating false hope. Think I am wrong? Sue for severance and let me know how that goes.

Time to grow up.

You'd better read 507 before you post such garbage. Yes, employees are after secured creditors, but first priority is domestic support. Employees are basically first, after the attorneys.

Except SEVERANCE is not a mandatory requirement of a firm to provide in the case of a lay off. According to the balance sheet period ending Dec 2013, CCI has $33 million in cash and cash equivalents while having long term debt of $76 million.

How Are Assets Divided in Bankruptcy?

1. Secured Creditors - often a bank, is paid first.

2. Unsecured Creditors - such as banks, suppliers, and bondholders, have the next claim.

3. Stockholders - owners of the company, have the last claim on assets and may not receive anything if the Secured and Unsecured Creditors' claims are not fully repaid.

How's the fourth priority looking now?

Seriously, time to grow up.

"Section 507(a)(4) provides that an employee claim for unpaid wages, salary, or commissions, including vacation, severance, and sick leave pay, is entitled to fourth priority treatment. Section 507(a)(4) also grants fourth priority treatment to sales commissions earned either by an individual or by a corporation with only one employee acting as an independent contractor in the sale of goods and services for the debtor. Sales commissions are only granted priority treatment if at least 75 percent of the commissions earned during the 12 months preceding the petition date (or, if earlier, the date of cessation of the debtor's business) were earned from the debtor."

And fourth is very high on the list, since the first three are very limited. Take a look at other bankruptcy cases, usually there is enough cash to pay the employees wages.