Oct 24, 2008 11:38 pm US/Pacific
Mervyn's May Not Pay Employee's Accrued Vacation
Kiet Do, Reporting.
HAYWARD (CBS 5) ―
One week after Hayward-based Mervyn's filed for bankruptcy, a letter has surfaced saying they won't be paying the accrued vacation time of their employees.
On Thursday, the CEO issued a memo to all managers saying: "A court has ordered Mervyn's to stop paying employees for accrued vacation time." The letter also said he was "Vigorously opposed to the decision," and that he was "disappointed."
Last week, corporate employees at the Hayward headquarters packed up their belongings and on Friday most were officially laid off. The company is filing for Chapter 7 bankruptcy and is liquidating all assets.
Legal experts say whatever is left of Mervyn's cash will be controlled by a bankruptcy judge. By law, so called "secured creditors' are first in line to get paid, followed by rank-and-file employees. If there is money, employees can get up to $12,000 each. Executives of the company will get what is left over.
The employees said last week they were told they would have a job through Christmas. Now, they have been told they could be out of a job next week. After decades of loyal service, employees who talked to CBS 5 say the move is hurtful, confusing and they feel lied to.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Click to enlarge
Stumble It!
Comments