Dayton, OH asked in Bankruptcy for Ohio

Q: My employer just filed for Chapter 11. I haven’t told them I’m pregnant yet but I plan to in a couple weeks .

I would like to know if my insurance could be affected by this chapter 11 and if I will still get my maternity leave the way that I would have prior. Also could me being pregnant put a target on my back for my job?

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2 Lawyer Answers
Cristina M. Lipan
Cristina M. Lipan
Answered
  • Bankruptcy Lawyer
  • Wantagh, NY

A: It depends on the specific facts of the chapter 11 case. Usually in a chapter 11, the business can continue operating. That means they may continue paying certain operating expenses, like employee benefits (with court approval). However, in the event the chapter 11 case doesn't go well, the business might cease operations, or may decide to only stop certain operations, which may affect your employment. Re: the insurance, it may be possible to extend by Cobra coverage. Your pregnancy should not affect your employment, but the bankruptcy case might.

If this is a bigger chapter 11 case, you may be able to find the docket online with the claims agent. Otherwise, you could sign up with pacer for court notifications, which you may need to pay for. You may want to look at the first day motions, to see if the company is requesting to pay employee benefits. Other than that, you'll have to see what happens in the case.

Timothy Denison agrees with this answer

W. J. Winterstein Jr.
W. J. Winterstein Jr.
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA

A: A business Chapter 11 bankruptcy is generally called a "reorganizaion", and in almost every case, the business intends to continue its operations, hoping to restructure/reduce its debts. Often, a new owner of the business is the result, which may result in a change in business management.

A business that has filed a Ch. 11 case is given broad flexibility to change its operations and ways of doing business. Changes in employee relationships and benefits may also be altered, although that prospect becomes more complicated if a labor union(s) is involved. At some point, if it has not already done so, the bankrupt company will file a proposed Plan of Reorganization in its bankruptcy case. You should procure a copy of that proposed Plan to determine whether it will affect your rights as an employee.

A quick way to find out management's intentions about employment policies is to speak to a manager or officer.

A business entity that files for Ch. 11 bankruptcy relief must comply with all applicable non-bankruptcy law. Your issues are "employment law" issues, far more than "bankruptcy issues". And in addition to federal law, a Ch. 11 business must also comply with applicable state (Ohio) laws.

You should confer with an Ohio attorney whose practice includes employment law, as well as bankruptcy issues.

Timothy Denison agrees with this answer

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