Thread regarding Dream Center Education Holdings, LLC (DCEH) layoffs

Warn Act

Did anyone investigate the legality of not filing a warn notice without severance?

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| 1191 views | | 10 replies (last February 5, 2019) | Reply
Post ID: @OP+XoBOAQk

10 replies (most recent on top)

Why give this person a hard time? It does not hurt anyone if people are investigating whether they violated the Warn Act.

If you are able to do so, why not be helpful?

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Post ID: @5aua+XoBOAQk

They haven't yet but i'm sure they will soon.

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Post ID: @1sdv+XoBOAQk

The company did not file for bankruptcy

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Post ID: @1qtr+XoBOAQk

It does NOT matter if they are under receiver sh--. Keep fighting if you have not already. Here's part of an article I found that says they cannot use that

To avoid giving proper notice.

Thankfully, the WARN Act's protections and obligations are not extinguished when a company files for bankruptcy under Chapter 7 or 11 or 7.

Specifically, a company cannot use bankruptcy to avoid giving proper layoff notices under WARN. If the employer knows, or should have reasonably known, that a layoff was foreseeable, it must give 60 days' written notice. Similarly, if the business continues to operate while in bankruptcy - for example, during a restructuring the company must adhere to WARN and provide notice 60 days before laying off workers. Likewise, if the business decides to cease operations and liquidate its assets, terminating its employees in the process, written notice to its employees is required. Thus, laid off employees are usually entitled to written WARN notice or pay in lieu of that notice, even if their employer is in bankruptcy.

Workers laid off by a company in bankruptcy protection should not give up hope of receiving the pay and benefits they are owed under WARN. It may seem improbable, but even after a bankruptcy filing, employers often have sufficient money to pay employees their outstanding wage obligations, including WARN pay. In addition, under the U.S. Bankruptcy Code, these claims usually have priority over other unsecured claims.

The key is to act quickly, as the bankruptcy process involves tight deadlines for filing claims.

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Post ID: @1beg+XoBOAQk

They went into receivership for a reason. Severance is a part of it.

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Post ID: @1fot+XoBOAQk

severnZnce...HA, they cannot even pay the electric bill or rent.

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Post ID: @1zor+XoBOAQk

Severance is not mandatory and is solely at the discretion of the employer. The WARN Act also has nothing to do with severance pay. Where do people come up with these crazy ideas. Also, the WARN Act requires a company with more than 100 employees to give employees 60 days notice of planned layoffs or reductions in force if 100 or more employees will be affected at any one location or 1000 or more at any combined locations. The WARN Act is voided if the company files bankruptcy and closes.

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Post ID: @1zau+XoBOAQk

Federal receivers do not need to adhere to Warn act.

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Post ID: @fxe+XoBOAQk

The employer determines if you receive a severance, and DCEH has no money to even pay rent on their buildings let alone pay people that were laid off, through the entire week. The receivership also makes the Warn Act void. It’s not right, but sadly, entirely legal.

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Post ID: @yet+XoBOAQk

You know that scene in Willy Wonka where he explodes on Charlie about getting nothing?

Yep that’s receivership. Even if somehow by some loophole a case was found there is no money to pay you with. That’s why you don’t have a job.

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Post ID: @yxc+XoBOAQk

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