In short, not only did 2,500 employees find out they were losing their jobs, with no notice whatsoever, just before Thanksgiving, but the truck drivers have even been ordered to turn around and return to home base! I have a feeling this is going to be a bigger story.
I didn’t even know that Musk had bought them.
(ba-dump)
I’m really not finding much more, deeper information, but I suspect that will be coming out soon.
“Your layoff from the Company is expected to be permanent and all benefits will be terminated immediately without provision of COBRA.”
How can they do that? I thought the law required COBRA in instances like this.
Maybe when you terminate all employees, there is no medical plan for COBRA to tie in with since it’s like the company dropping its insurance for all employees and staying in business. Or maybe it’s a provision of Chaper 13. Don’t really know, looking forward to a definitive answer.
Moderating:
I’m tagging this as a breaking news thread. From here on, please treat it as such.
I don’t think so.
There are already legal questions popping up over this:
“Hearn said not offering employees COBRA is also a violation of employment law.”
And they may have violated the WARN act. Plus nobody can seem to find any bankruptcy filings. Something is really weird about this.
The law only requires that they get access to the same insurance that current employees get. That’s looking a lot like nothing.
I wonder what occurred to make this happen. From the cited articles, the company did some shuffling and restructuring recently, but I guess it did not work. Sounds like poor management and leadership, or a severe miscalculation on something. It will be interesting to see what led up to this. Very sucky for the former employees.
I have a Lane table from the 1960s or 1970s from inheritance, otherwise I would not have known the brand all that well.
I know them mostly from the cedar chests. My mom had one that my sister has now.
Other than that I think of them mostly as old fogy furniture.
Hey, I resemble that remark.
COBRA coverage can be cost prohibitive.
North Carolinians can access healthcare subsidies at Healthcare dot gov. Open enrollment until 12/15 iirc.
You have to estimate your future earnings and if you’re unemployed it should be easy to find a very affordable albeit high deductible plan with the required and mandated coverages. NC has a robust hospital system and coverage should be easy enough to find.
Can be, but it could offer better coverage at a cheaper rate depending on what they had. I was on a Cobra plan for 18 months and was glad to have the option.
The question is how can a company not offer it as an option in this situation? We may not know until after the holiday and its possible that this could be walked back.
Sorry!
The only place I can recall seeing Lane furniture was as a prize on 1970s game shows. IIRC Monty Hall gave away a lot of their product.
A sudden total shutdown sounds like massive accounting fraud and the finale was the conspirators flushing the last few mil into a numbered Swiss account as they were already enroute to a no-extradition haven country.
Leaving no assets, millions in debts, and a pile of questions. And 2500 befuddled former employees and umpteen thousand customers out their deposit on furniture that will never be built, much less arrive. And a lot of screwed vendors with a sudden cashflow problem.
I’m guessing that the company was self-insured, which is not uncommon.
The people I saw interviewed were all in Mississippi.
Do they participate in Medicaid expansion? I know in a few states being unemployed or working poor w/ low income means no subsidies and no coverage since having low income is covered by Medicaid (unless the state opted out, like Texas). Also, it doesn’t really matter when open enrollment is if you have a life event like losing coverage.
I’m an old fogey, and I’ve never heard of them.
(I also have no idea what COBRA and WARN are.)
Mississippi does is one of 12 states which DO NOT participate in Medicaid expansion.
To me it sounds like they had major bank loans and the banks decided to quit lending (because the company had large continuing losses).