Hi, I live in NYS and due to a company merger, I was laid off. A severance agreement was signed offering me a month of salary and 3 months health benefits, I would pay the COBRA premium and then the Company would reimburse me. It has been two months now,

Hi, I live in NYS and due to a company merger, I was laid off. A severance agreement was signed offering me a month of salary and 3 months health benefits, I would pay the COBRA premium and then the Company would reimburse me. It has been two months now, and there is no reimbursement despite emails to HR and the CEO. Complicating the matter more is that the company i once worked for was bought by Company # 2 and now the remaining parts of the Company were also sold to a new CEO. So from talking to another ex-employee it looks like Company 1 is saying Company 2 needs to reimburse us. Company 2 is saying no, we never hired them, they were on your payroll through the transitional period, so we cannot reimburse them directly, we can reimburse Company 1 for the costs of reimbursing the ex-employees but Company 1 needs to reimburse them. Also the CEO of Company 2 signed the severance agreement, but not the CEO of Company 1, which I think was deliberate since he knew he was selling the rest of the company and could just not pay us then. What can I do- or what letter can I send to demand the reimbursements?

1 answer  |  asked Jun 30, 2017 06:09 AM [EST]  |  applies to New York

Answers (1)

V Jonas Urba
Call New York DOL.

Ask them whether they will help you recover wages. Although not technically earnings you are entitled to be reimbursed and the state will likely collect taxes so they should help you.

Last option sue in small claims or other court for breach of contract.

We would help you had we negotiated the deal since we would likely have insisted on a prevailing party attorney fee provision to avoid this. Now you may have to pay a lawyer a few grand if above does not work and that's probably not what you wish to do. Best.

posted by V Jonas Urba  |  Jun 30, 2017 06:26 AM [EST]

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