Are Employees Guaranteed Jobs if a Bankrupt Business Reopens?

Morris County Bankruptcy Lawyer Discusses Filing Claims for Unpaid Wages

In January, our attorneys discussed the Chapter 11 bankruptcy and the Revel Casino in Atlantic City. Recently, new developments bring Revel back into the spotlight for us, as the casino has been closed and sold to a Toronto-based company. This caused over 3,100 workers to wonder if they will have their jobs back under the new company or not. Unfortunately, it was later announced that the new owner, who may change the name of the casino, is not required to rehire former employees. Why is this the case?

There was a sale agreement reached during the settlement. In the agreement, the new casino owner, Brookfield US Holdings LLC, has the liberty to decide if it wants to rehire any of the employees.

While this is generally the case in bankruptcies, a benevolent company has the option of protecting its workers as part of the sale agreement if it wants. However, this is rare since a bankrupt business is habitually trying to gain or save as much money as it can in a sale agreement.

There is still a chance that they could rehire workers with casino work experience, as they plan to continue operating the business as a casino. Naturally, some of the workers may find work elsewhere in a city with other gambling establishments.

My Company Went Bankrupt and I Lost My Job – What Can I Do?

If you lose your job to bankruptcy, you will want to find out what rights you have. You should make sure to claim all of your unpaid wages and compensation by filling out a proof of claim form. Additionally, you have the right to obtain information about the financial status of the bankrupt company.

For the claim form, you will need to submit the form by the deadline if you hope to get at least some of your lost wages or other compensation.

In the event that you are offered a severance package, you should try to see how long you could expand the time of your severance period. Also, be aware that your health plans and other benefits are likely to go away when you lose your job. If you had a pension plan, you will want to make sure you get the money that has accrued.

Denied Pay During Bankruptcy?

If you think you are being denied wages from a company in bankruptcy, reach out to an experienced bankruptcy lawyer to see what your options are. If you filed a proof of claim form before the appropriate deadline, then you are likely eligible for some of your lost wages and compensation, if not all the money owed you. It is important to have a bankruptcy lawyer that can represent you and settle the issue quickly. Reach us at (973) 984-1300, and schedule a free consultation with one of our Morris County bankruptcy lawyers today.