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In the USA can a company legally shut down without notice or pay?

  1. peeples profile image93
    peeplesposted 2 years ago

    In the USA can a company legally shut down without notice or pay?

    And no ability to collect unemployment? My husband's job is shutting them down for 3 weeks and gave them all of 2 weeks notice about it. They have never done this before. Because they are still considered employed they have no way of getting unemployment for that time. They are not actually laid off, just out of work. Are there any rules for employers or are they just allowed to do whatever they want with no thought towards the employees?

  2. Chantelle Porter profile image92
    Chantelle Porterposted 2 years ago

    Spoke with my husband who is an employment attorney. Unemployment has a waiting period. Here in IL its 1 week.  Have you checked with unemployment office?

    1. peeples profile image93
      peeplesposted 2 years agoin reply to this

      Haven't checked yet. Going to call. I don't know if they will approve it with him still considered an employee.

    2. fpherj48 profile image77
      fpherj48posted 2 years agoin reply to this

      People who are "laid-off" are still EMPLOYEES.  I don't know why this case would be different.  There's something really wrong w/ this picture. I don't know your State's laws, but laws re: employment are Federal anyway. You need to make some calls!

    3. peeples profile image93
      peeplesposted 2 years agoin reply to this

      I'm calling first thing in the AM!! Not going to miss any money he should have!

  3. Kylyssa profile image94
    Kylyssaposted 2 years ago

    Here in Michigan, you can file for underemployment. I actually did so in the past when an employer who hired me for full-time employment extended my medical leave longer than my doctor ordered and cut my hours to part-time after I returned.

    1. peeples profile image93
      peeplesposted 2 years agoin reply to this

      As far as I know my state doesn't offer "underemployment", but I will check. Thanks.

  4. Express10 profile image88
    Express10posted 2 years ago

    I once worked for a company that shut down every year at the same time and the company filed unemployment for each worker (thousands) because they are a massive multi-national and apparently had HR do this for us to streamline the process. We did not have to contact the unemployment office, we all literally got checks in the mail for those two weeks we were not actually working.
    It is because of this personal experience that I say yes, a company can legally shut down with or without pay. However, I would venture to say that once your husband is not actually working that is when he will have to take the time to file for unemployment. All companies will not streamline the process  or are simply not able or allowed to.

    1. peeples profile image93
      peeplesposted 2 years agoin reply to this

      They didn't even mention it in the meeting. Just made it sound like everyone should be ok with suddenly not being at work, but they kept saying "this is not a lay off". Thanks. Going to apply online as soon as the shut down starts!

    2. Chantelle Porter profile image92
      Chantelle Porterposted 2 years agoin reply to this

      Anytime there is a reduction in hours unvoluntarily you are entitled to unemployment. Don't rely on the company providing the info. Employers are charged when employees file.

    3. Express10 profile image88
      Express10posted 2 years agoin reply to this

      To Chantelle Porter, I did clearly say that the husband must file & all companies cannot or will not streamline the process. I think that it's best if her husband makes the visit or calls because he would have all the info needed to file.

    4. peeples profile image93
      peeplesposted 2 years agoin reply to this

      I have all the info needed to ask the questions. My husband works from 6am till 5pm. Local offices are not open by the time he gets off work. So I'm going to have to be the one to call for info. I want to be prepared for him when he has to apply.

  5. Ericdierker profile image54
    Ericdierkerposted 2 years ago

    Happens all the time in construction work. No new jobs no income to company and they shut down for a time. Each case scenario is different. Most states will carry over in a period of claims status - being an employee during that time is a silly notion. No work, no pay, no employment. You say no notice in your question but explain a notice, big difference.
    A labor lawyer should be contacted to view for violations and no matter unemployment should be filed/claimed within the first 24 hours of "out of work" - it effects unemployment pay schedules.
    On a side note it may be hard to grasp but, your husband and you should count your blessings that the company shuts down for a few weeks rather than screws up and has to shut down permanently.
    The very straight answer to you question without the explanation is NO.

    1. peeples profile image93
      peeplesposted 2 years agoin reply to this

      2 wks notice to me isn't sufficient for telling ppl they will be out of work for weeks when they never have. He plans on filing UnE, the first day out. I'm thankful he has a job, not thankful for their lack of communication. They knew 4 mths ago. Thx

    2. Ericdierker profile image54
      Ericdierkerposted 2 years agoin reply to this

      Well that lack of notice really stinks. Get to a lawyer with the names of all effected employees. Compensation will not be great and you do not want legal or illegal retaliation so the more folks involved with any action will work better for you.

 
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