Getting 'fired', or maybe 'laid-off'

[DMGO]

I'm a retired fed, and worked in the private sector part-time for the last six years. It's a small company with 26 employees. No one gets any benefits, other than their hourly pay. Suddenly, the business owner decides that he's paying the employees too much $, and wants to do a "corporate restructure" and get rid of all the current employees, and replace all of us with new, lower-paid people. Can he actually pull this off, and would I be eligible for unemployment comp in an event such as this?

 

[DayDreaming]

I'm pretty sure he can, and yes, you would be eligible for unemployment comp.

 

[Amethyst]

If the owner can't afford to pay what he/she has been paying, why replace all the current employees, rather than offer them a pay cut to keep their jobs?

Amethyst

 

[Rustic23]

It might depend on the age of the current employees and the age of the replacement employees. He may face an age discrimination suite if he replaces older old employees with young new ones.

 

[cardude]

Wow. If the business owner is that stupid I wouldn't worry about staying-- he will probably go out of business soon anyway.

 

[Midpack]

Check your state, but where I live you're eligible for unemployment if you lose your job "through no fault of your own." Layoff qualifies and so would fired without cause. In fact, it's really hard to not be eligible in my state. Only if you're clearly fired for just cause or quit voluntarily would you not be eligible. Best of luck, a bad situation no matter what the details may be.

 

[Brat]

You should probably check with your state about the "part time" aspect but I agree with others that this employer is buying an age discrimination case.

There are some employers who are hyperventilating about the new health insurance law, he may be reflecting comments by some talk-radio commentators. I know my son is in a twit, a small businessman who provides health insurance. My recommendation is that he not panic, that he wait for specifics.

 

[Emeritus]

One cautionary note. In such a case you often find that the employer has been fiddling with the FICA FUTA and Federal withholding payments. Most states wages and hours divisions can make sure the payments re up to date.

 

[Brat]

That is a good reason to keep your pay stubs.