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Comment by RutgerHauer | Hacker News Reader

They (chicken soup) bought the company a friend works at. They failed to pay their employee’s health insurance premiums, then failed to tell the employees for months. Now the employees are having all their claims revoked during that period and are having to pay them on their own.

And this is the second time they’ve done this.

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WTF living in the US is such a nightmare sometimes. A company can outright defraud you like that and there will be zero consequences.

Here in Germany, if a company fails to pay social security and health insurance (but claims it did on payslip) someone is going to jail. And the law even goes beyond and stipulates that the employee will remain covered, and these kinds of payments are first priority during insolvency.

In Poland you get a notification from social security bureau that your employer did not pay your insurance on time.

> Now the employees are having all their claims revoked during that period and are having to pay them on their own.

Was it a contractual arrangement? They just have to front the money until they sue the company; they're suing as they're looking for new jobs right?

w2 employee. They'd have to get in line in small claims court because they weren't out of pocket enough to really sue.

Read between the lines; it's going bankrupt. Like the first incarnation of WeWork.

“Overnight we filed for Chapter 11 bankruptcy protection,” the message said. “In connection with the filing, we have applied for approval of a debtor in possession [DIP] loan. Upon court approval, we expect payroll to be funded early in the week and funding for this upcoming week’s payroll to also be secured. We also expect to have the funds to reinstate medical benefits back to May 14, 2024 and going forward. We will provide regular updates.”

And now they’ve missed the last round of payroll.

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