The entire online office in Chandler, AZ was let go with 5 minutes notice on Tuesday and that "Dear Colleagues" letter was the only official documentation they gave us... No severance. Those asshat leaders that drove this organization in the dirt with no concern for its employees are going to hell. While I might not be able to get my pound of flesh, I am going to look into the legality of what they did. There are federal laws regarding massive layoffs in regards to providing appropriate notice and how long they need to provide pay after giving notice. It is in place to lessen the impact on the local economy and that many families. There may be a class action lawsuit in the news in the near future. Stay tuned.
17 replies (most recent on top)
You will not get severance unless a severance payment provision was stipulated in your employment contract, or, by your employer’s good grace voluntarily gives it to you prior to the company filing bankruptcy.
If you did have a severance payment provision in your employment contract and you are laid off after a company declares bankruptcy you are not entitled to severance pay. Sorry.
The way a Chapter 7 Bankruptcy works is to detailed to explain here. But quickly stated: once all secured creditors’ claims are paid, and to the extent funds are available, the trustee will make distribution payments to unsecured creditors such as employees.
If you want to try and recover wages, including severance, you must file a claim before the court. The chances of you receiving any funds from the bankruptcy are slim. because secured creditors are paid first and there is rarely enough funds to distribute to unsecured creditors.
@2xug - This was an interesting read and does set a clear precedent, but that doesn't mean we throw up our arms and quit. A lot of it comes down to who ordered the closing. Do you know who ordered the closing? I wasn't in the room when that decision was made so I do not know. What I do know is DCEH's logo was on my official termination documents and there was no mention of it being anyone other than DCEH. I also know I am not a lawyer and my guess, neither are you.
A lawyer already has all of the info and is looking into the details to see if there is a case. It could go the way of the precedent set in a case regarding a bank OR the situation could be slightly different. If there was a mess up on DCEH's part, we all could benefit (at least us in Arizona). You can't win if you don't play. At least I can say I didn't sit around on my lazy a-- feeling sorry for myself.
I start my new job with a great company this week! I hope all of you in this mess are seeing success as well!
Um. do some research. The is court precedent that receivers are not "employers" under the WARN act definition and so they are not required to provide such notice.
https://www.kalawgr.com/blog/138-state-court-appointed-receivers-and-the-warn-act
B!tch better have my money or I b slapping yo @ss into yesterday to get it . Did I stttttttttutter......$hit
You guys are crazy if you think for one moment the US Court System is going to side with any of you former employees in a lawsuit over payroll. This company has made a name for itself for aggressively marketing and recruiting underprivileged, unbeknown students who are left in crippling debt that they cannot repay. Whether you like it or not, and no matter what your personal intentions were, you were part of the establishment that did this. Any money to be awarded after bankruptcy proceedings will be distributed to the actual debtors of the establishment., not the former employees. For example, the businesses that are owed rent are going to come before you. they have better lawyers and they were not part of the problem of raising student debt and default in this country.
Here ya go:
Craigslist.com
Report back to us so we apply it to our stats.
Dear Anonymous,
It was a job. If another job of equal pay had been available I would have left immediately. Since one was not available, the best idea is to stay until you are fired, then there is at least unemployment benefits while the job search continues.
Thanks for your concern.
Respectfully,
Anonymous
My sympathies go out to those who are not unemployed. It is very unfortunate. However, EDMC has been struggling for a while and my question is this: Why hang around when it became evident that their plans to turn the company were heading for a not-so-happy ending?
"This is employment at will" - Yes it is an at-will state, but state laws cannot trump federal laws and the WARN act comes into play when a layoff is over a certain size.
"don’t waste another minute on this God forsaken place and move forward." - This is what happens too many times when companies try to skirt the law. They pray on the laziness of Americans who just complain, but not act. How many times do you think companies got away with breaking the law because of this laziness?
I do get where you are coming from though... Is the juice worth the squeeze? For some, it might be just to possibly see some accountability for actions like this.
nvo - they had time because it's documented - all their money troubles started last year.
https://www.educationdive.com/news/how-buying-the-art-institutes-brought-dream-center-to-the-brink-of-collapse/546627/
According to Barton, the troubles began shortly after DCEH took over the colleges it bought from EDMC. Within two months, the organization discovered that "actual revenues" fell short of EDMC's projections prior to the acquisition, he explained in court filings. He put the colleges' revenue shortfalls in the context of broader declines in student enrollment and tuition revenue at career education schools.
By the spring, DCEH was looking at a $38 million operating loss for the year, compared to the $30 million surplus "represented by EDMC" prior to the acquisition, Barton said. Even worse were DCEH's projected operating losses for 2019 ($64 million) and 2020 ($69 million).
@XiUtJzg-ypi So how do you think the other people at the closed schools felt?! You should have known this was coming since the announced closing 18 schools! The writing been on the wall and you chose to keep scamming right along with them. You think we were treated better! This is not just about you decade working a!!, you chose to stay just like all of us and now you crying cause you not getting severance. When they took over they updated the employee handbook stating they are not obligated to pay severance. I didn’t either and worked while laid off! So stop whining and move on they don’t give a c-ap about you or the students!
Some of us are spending or wasting this time because we worked for the organization a decade or longer. DCEH spent months with us. We should be eligible for severance and not cheated out of what we are due to move forward. Yes, you can say we were dumb for staying. That is fair and may be true but a decent human, especially from a Christian based organization should put aside cheap ways out and great a person as they should be.
Why did y’all think you were out of the woods after they closed the first wave of people and closed all those schools. They literally had people working but laid off. This is employment at will so don’t waste another minute on this God forsaken place and move forward. There is a spec oak place for these SOBs but this should be a relief because it’s over no more drama in your lives!
I'm not going to take for face value what a piece of paper some low-level loser handed me. I'd rather get a 30-minute consultation with a lawyer and see what they think. If a lawyer is willing to take the case on contingency, there is probably a case there. I'm not saying I'm right or wrong, but at least I'm willing to get off my unemployed a-- and do something. I do have an interview tomorrow btw... Wish me luck...?
Are you a lawyer? You never know unless someone tries. Employees could be awarded up to 60 days worth of pay if the court swings the right way. We were DCEH employees per the letterhead on our "Dear John" letters. They would have the burden of proof to show they meet one of the conditions that would keep them from being penalized. The only one I know if they could try is "We didn't see this coming. We woke up one morning and all of the money was gone." If they had enough time to give a more advanced warning, employees could get awarded and DCEH could get a hefty slap on the wrist with fines.
DCEH sent out a mass email Friday 1/18 saying only certain portions of the organization were subject to the receivership filings. On Tuesday Jan 22, all employees regardless of school, we're given the generic letter saying they could not pay severance under this receivership status. Ok. Well I worked for South University Online. This was the FIRST school listed on the list who was NOT in receivership. We need a class action suit brought up against these crooks.
It is called the WARN Act and since they didn't release us until after they were in receivership, all they will get is a slap on the wrist so, don't hold your breath for any actual compensation.