Have any of the recently laid off employees retained legal counsel yet? I am not a lawyer, but my understanding is that wages, vacation and severance are granted priority status over unsecured creditors. However, that amount is capped at $15,150. I really hope I am wrong, but when HR told us all that we would be on payroll through September 22nd, they did it with management knowing that bankruptcy would be filed in 9 days and we would all be getting a fraction of what they told us. Nice integrity, and what a great way to deceive the people who were working hard for you.
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Is 160 hours of PTO ceiling still in effect for the laid off employees? (since they are still accruing until 9/22).
I'm not a lawyer but based on the filing, people notified in july are still considered Employees and are covered under regular payroll obligations. I am in no way supportive of the company because they fu---d me over too, but I think it's in everyone's best interest not to panic.
https://document.epiq11.com/document/getdocumentbycode?docId=4597294&projectCode=HSQ&source=DM
"For the avoidance of doubt, the relief sought by the Debtors includes authorization, but not direction, to continue to pay and honor Compensation and Benefits to the Notified Employees during the Transition Period (and
for any such longer period that the Notified Employees are employed by the Debtors)."
Also...
The $17k cap is only for unused PTO. The filing shows they were seeking approval to pay any unused PTO to "notified employees" even if it exceeded that cap, as a show of good faith.
"The Debtors therefore request authority,
but not direction, to pay any prepetition Paid Leave Benefits (if any), to the extent such benefits are reduced to a cash payment obligation, and to continue to make any such payments as they become due and payable postpetition in the ordinary course of business."
Long story short, the court appears to have approved the company be allowed to pay over that cap when necessary, to avoid current employees from sh-----g their pants and leaving.
"The Debtors may, in the ordinary course of business and consistent with historical practices, permit Employees to use Paid Leave Benefits earned prepetition and pay Employees on account of accrued but unused PTO in excess of the priority amounts set forth in sections 507(a)(4) and 507(a)(5) of the Bankruptcy Code."
More from the company's request for approval :
"Payment of Paid Leave Benefits could exceed the Priority Amount to the extent an eligible Employee resigns or is terminated postpetition and his or her PTO benefits are reduced to a cash payment obligation. The prepetition portion of such cash payment, when combined with other wages and benefits, would exceed the Priority Amount for certain Employees. The Debtors submit that making these limited and contingent payments from time to time postpetition in excess of the Priority Amount is consistent with the Debtors’ historical practices and are appropriate under the circumstances. The Debtors therefore request authority, but not direction, to pay any prepetition Paid Leave Benefits (if any), to the extent such benefits are reduced to a cash payment obligation, and to continue to make any such payments as they become due and payable postpetition in the ordinary course of business."
https://document.epiq11.com/document/getdocumentbycode?docId=4597294&projectCode=HSQ&source=DM
The cap is only for the amounts accrued and owed prior to filing. The 60 days of pay isn’t accrued yet
@by so if one has lots of unpaid PTO, it could hit the cap
Notice the references to sections 507(a)(4) and 507(a)(5) of the Bankruptcy Code which would cap you out at $17,150:
https://document.epiq11.com/document/getdocumentbycode?docId=4597517&projectCode=HSQ&source=DM
does that mean pay till 9/22 is at risk
@OP Charlie will pick off a dollar from sewage if he no one is watching.
@OP It depends on what court approves, generally they protect all these payments. you can follow that on https://dm.epiq11.com/case/hughessatellite/info
What did management say in their communication today in staff meetings ? Charlie and Ramesh?