My store closed 9/2. Was notified today all of our packages were not being paid as of 10/15. Another way for Sears to screw their employees.
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To the poster below: Thank you. Of course the affected associates should file. No reason not to. Certainly nothing to lose.
If you're filing a claim for pre-petition severance pay, you're ahead of "employees who may not be paid if they file chapter 7" and many vendors and landlords as well. There isn't necessarily a need to pay a lawyer to file a claim. It's a three page form. (You may need to use google once or twice.) A severance package is a contract. The one Sears provides happens to be governed under ERISA. Sears could decide to stop offering it in the future, but once it's been given on your last day it is a debt obligation on their part. It's terrible advice to tell people it's not worth their time to defend their claim, especially given that there will be a time limit to file (although the court has not yet set a deadline).
This is better information than you're going to find on this site:
https://www.citybarjusticecenter.org/wp-content/uploads/2016/11/Bankruptcy-Basics-A-Guide-for-Employees_2016.pdf
@sij- You can file but it could take years to even get a hearing and the lawyer fees would be far more than what you are owed. Even a class action suit would only get you pennies on the dollar due to lawyer fees. Not really worth the time or effort. I would move on and take it as a life lesson.
@fbd Severance is not a salary. It is considered a benefit or perk and can be taken at any time.
think of it as getting to use the company car, they can take it back anytime.
@1snh-- You are correct in the sense that once you sign the papers you do become an unsecured creditor. but all that legaleze goes away in BK. Also, as an unsecured creditor you are behind Eddie, Eddies hedge fund, vendors, landlords, empoyees who may not be paid if they file chapter 7, then you are next in line. How much money do you think they will have left after paying all those people and the lawyers?
The documents I've seen do not state any reserved right of the company to stop payment for "any reason." The closest they come is asserting the right of the plan administrator to make discretionary determination of eligibility and interpret the plan. The document also states "The rights of the associate and any beneficiary under this Plan will be solely those of an unsecured creditor of the Company." (p. 11 of the Summary Plan Description). By definition a creditor is someone who is legally owed money, goods, or services.
In other words, file a claim and expect some kind of payment, though it may be a pro-rata amount rather than what was agreed to by the company, depending on how much goes to secured creditors.
When you accepted severance, the fine print in the document stated that Sears reserves the right to stop at any time and for any reason. Therefore, it seems a very low probability you'll get anything. I will probably file but if I see anything out of it, would be a big surprise. Hopefully it's not a big ordeal to file.
1gis and 1ous, I just want to make it clear, we do not live in Canada. We have American laws, which are different than Canadian laws. Severance will be gone. Lump sum pension will be gone. Monthly pension payment is protected. 401k is protected.
Again, I recommend filing whatever form you need to file with the bankruptcy court. You have some free time, right? Even if you get $30 later, it's 30 more than you will get if you don't.
You need to be realistic here. Your severance pay is gone. You can complain all you like and go ahead and stake a claim in the bankruptcy court. But you will receive zero. And as I posted in a different thread recently, your lump sum pension is GONE. The monthly payment option is still available at a reduced rate; but it will also be gone soon. No miraclrs, no government bailout, no insured payment, nada. I guarantee it. You can come back here in three months and thank me for the information.
You can file in BK Court. You will be told .10 on the dollar. You will never se a penny of it. The large Corp vendors will get all the money avail from Chapter 11 accnts. DO NOT believe 1 word you read or hear. If you do not hear it from the BK Judge in a writen report, then is is propoganda to keep you working to help grease the cogs, or if from a store that already closed and letters have been spoken about here (ie), No longer will be receiving any further pay/ benifits....GREED AT ITS BEST!!!
Still amazes me that people get upset at getting no severance. And then when someone comes on here and calls them on it they spew profanity and insults. Have you not paid attention to the 14,000 Canadians who got zippo for severance and had pensions cut 30 percent. I will say it again, I will not stand for it. This childish ,baby anger at not getting what u think u deserve.
So Mr. No Pity "wont stand for it". What the frack is he going to do? Spank us? Guess what kranknut, you cant stop us from saying whatever we want. HA HA HA HA HA
Hey Mr. No Pity don’t want to hear about it. Go f--- yourself douchbag.
But DEFINITELY apply. And keep a copy. It may come as a tiny surprise later.
BK courts are supposed to make sure the salaries owed are paid before creditors as it’s an administrative debt. It will take a while as it is decided in a hearing.
No pity here folks on not getting severance. It does s--- but you stayed on till the end full well knowing this could happen and guess what? IT DID! You rolled the dice and they came up c-aps. No crying, wimpering, moaning, groaning, complaining or any more bitc@@@@! I won't stand for it!
Salaried. It was a nightmare getting paid from the beginning of this process. I was entitled to 6 weeks.
Yep fill out form on Prime and sit back and wait for the next several DECADES for the mere pittance you MIGHT receive - you got a better chance of being struck by lightning
I received a letter from Sears telling me that severance and benefits stopped, that I have to enroll in Cobra for insurance.
So... does anyone know what the procedure for filing in BK court is? Just fill out the form on Prime Clerk? Is there a timeframe for how long it'll take to get whatever portion of what's owed you're going to end up with?
Thank god I got my last payment on 10/5! I really lucked out
I too was from a store that closed on 9.2.18, the last check that was received was last Friday. They were supposed to pay 4 more weeks. Today, I received a letter stating I would have to file in BK court to receive the rest, I was supposed to get 8 weeks of severance.
6 weeks?
How many weeks were you suppose to get?
Are you hourly or salaried?