Jean Tobin Zawlocki
(734) 340-5078
47728 Scenic Court
Canton, MI 48188
jmzawlocki@yahoo.com
HELP! My Company’s Going Out of Business, What Do I Do Now?
A Guide for Employers, Current Employees, and Unemployed
By Jean Tobin
ACKNOWLEDGMENT
I really appreciate all the assistance received in a very late notice, less than 8 hours. These individuals rose to the occasion to edit a chapter so that this book would be more clear and understandable for all who read this book, for that I salute them.
I especially acknowledge Jan Strube for taking time out to edit two chapters while working on her own project for her late husband’s endowment fund.
I also acknowledge Karen Miskowski for sitting with me till 1:00 a.m. editing a chapter.
I also acknowledge Dave Bunch for editing and went along with the program of doing three chapters, for that I very much appreciate.
I am very appreciative of Marilyn Bak who let me do sweat equity so that she could edit while in the midst of a move.
I acknowledge Judy Stephens who had visitors out of town and a doctor’s visit and helped anyway.
FOREWORD
Realizing the large number of companies going out of business and having experienced the process on several occasions, I was dismayed at the economic impact on people’s lives. I never seriously entertained the thought of writing a book until I lost my job a second time. It was then I decided to share reactions of what other people have done when they’ve been in a worst case employment scenario.
This is a collection of stories from nonprofit, manufacturing, service, social services, and other industries. Examples have been taken from employees. Written as a cautionary tale or maybe I should say “precautionary” tale; I hope this book will provide a better understanding of the possible devastating impact on your finances when working for an insolvent employer.
As part of the book, federal and state (Michigan) laws were included. All the information and laws were current and the author is not responsible for any unintentional misinformation or changes in law. Also, more than 30 websites have been added. Keep in mind, all stories within are worst case scenarios.
Additional information on the latest laws has been added. Also, to aid you in your research beyond the book, more than 30 websites are listed, so that you have the latest information. With that being said, I hope you enjoy the stories and learning about bankruptcy from a former employee’s perspective. Good Luck in your future endeavors!
TABLE OF CONTENTS
CHAPTER I
INTRODUCTION
Signs of Going out of Business
WARN Act
Beginnings of WARN Act
Company Bankruptcy – Worst Case Scenarios Beta Corporation
Outside Vendor asking for their Money
Corporation Bankruptcy - Safety Products
Organization Bankruptcy
CHAPTER II
CORPORATE BANKRUPTCY
www.turnaround.org
Chapter 7, Chapter 11,
Chapter 11
Discount Retailer Bankruptcy
Chapter 11 Bankruptcy Statute
Liens
Restructuring Debt
Quick Thinking & Restructuring Bankruptcy
Chapter 7 – Hostile Takeover Scenario
Chapter 11 Bankruptcy - Severance Package
Company Reorganization Definitions
Bankruptcy Reorganizing
Quick Thinking Restructure
Going Concern
Filing for Bankruptcy
Bankruptcy - Intellectual Property Scenario
IRS, Taxes, Intellectual Property
Bankruptcy Meeting Scenario
CHAPTER III
PERSONAL BANKRUPTCY SUGGESTIONS
Personal Bankruptcy - Mortgage Problems
Proactive Foreclosure Steps
In Lieu of Foreclosure - Loan Modification Process
In Lieu of Foreclosure - Types of Mortgage Renegotiation
Foreclosure
Foreclosure Options
Last Resort -Home Equity Loan
Mortgage Servicer
Short Sale
CHAPTER IV
PERSONNEL FILE
Bullard-Plawecki - Employee Right to Know Act
Obtaining Personnel File
Medical Information
Job Descriptions
Accomplishments
Employee Handbook
Letterhead
References
Letters of Recommendation
Letterhead
List of Employee’s Names/Additional Benefits
Free Education - Trade Adjustment Assistance Act
Education – Pell Grant
Employment Connections
Networking
Business Cards
www.vistaprint.com
Job Title
CHAPTER V
MEDICAL ISSUES
C.O.B.R.A.
Medical Insurance
Alternative Medical Insurance
Conversion Policy
Children’s Health Insurance Program
Medical Insurance – Worst Case Scenario
Behind on Medical Insurance Premiums
Partially Funded health Insurance – Corporate Insolvency
Flexible Spending Account
Eligibility
Flexible Spending Account Expenses
Reimbursement Claims Timeframe
Flexible Spending Account - Payroll Deduction
Flexible Spending Account – Prorated Deductions
Health Savings Account
Low Cost Medications
The American Recovery and Reinvestment Act of 2009
HIPAA (Health Insurance Portability Accountability Act
HIPAA – Three Rules regarding Privacy
HIPAA Security Standards
Chapter VI
RETIREMENT
401(k)
Annual Contribution Limits
Employer Contribution
401(k) Deposit Submission
Delay of 401(k) Account Submission
401(k) Administrative/Maintenance Fees
Other 401(k) Fees
401(k) Compliance
Slow to arrive 401(k) Funds
Employer Financial Planning Seminar
Worse Case Company Scenario
Best Financial Planner
Choosing a Financial Advisor
Pension Shortfall
Pension Benefit Guaranty Corporation
Company Scenario
Financial Planner
Roth 401(k)
Chapter VII
SAFETY
Material Safety Data Sheets (MSDS SHEETS)
Protective Personal Equipment
Material Safety Data Sheets Product Information
Hazardous Material Labeling
Hazardous Materials Information System
Environmental Medicine Doctors
Injury Report Form
Injuries on the Job
OSHA 300 Log Information
CHAPTER VIII
COMPENSATION
Payroll Checks
Unemployment Checks
Non Payment of Unemployment Compensation
Severance Package – Worst Case Scenario
Lump Sum Payment
Money Market Account
CHAPTER IX
COMPANY CREDIT CARD
Company Credit Card - Worst Case Scenario
Credit Card History - Remedy
Personal Credit Card Issues
Personal Credit Card
Collections
Fair Credit Reporting Act
Nonprofit Credit Counseling
Leasing
Cell Phones
Accessing IRA Funds
Choosing a Financial Advisor
CHAPTER X
SOCIAL SERVICES
Home Heating Credit
The Heat and Warmth Fund - T.H.A.W.
Michigan Property Tax Credit
Money Market Account
Severance Package
Severance Package – Worst Case Scenario
Lump sum Payment
Next Step
CHAPTER XI
STRESS / FEELINGS / SPIRITUALITY
Emotions/Stress
Gut Feelings
Introspective Exercises while looking for Employment
SUMMARY
Websites
Bibliography
INTRODUCTION
I truly have had the wonderful experience of working in Human Resources. I love law and acting as an advocate for employees and for the organization. In my role, I realized that some organizations may not know how to best serve their employee and be solvent. This can have a less than positive effect on the employee as well as the organization. The organization is only as good as the senior management team in guiding their employees and to be fair, leaders may not being given accurate information from their employees. It can be just like the story of the emperor who wasn’t wearing any clothes. Employees are afraid to tell their leader the reality of the organization’s shortcomings. Senior management sheltered from criticism never have an accurate picture of the business.
This book is a proactive approach of what to do when your employer is going under financially. The information in this book has been gathered by talking to people who have had first-hand experience and research. Personal stories in this book show worst case scenarios and their problems. It also, illustrates how employees can receive stealth expenses up to a year after company closure. This book gives a proactive approach on how to deal with the issues. State and federal laws have been added so that you get an understanding of the law. Having an understanding provides the opportunity of making better decisions. Knowing what to do may not be enough to prevent the worst case scenario but it will provide a practical foundation to avert trouble.