Bankruptcy

More Protection for Bankruptcy Filers: Labor Department Updates Enforcement

By Meaghan Olson

The New York Times reported this week that the U.S. Department of Labor has announced plans to better enforce corporate compliance with worker safety, wage and employment equality laws. There is some hope that this move will provide extra protection to workers filing bankruptcy.

The measure will reportedly target two major problems in the workplace: Improving safety and security on the job; and the improper classification of employees as contract workers. If implemented, here?s how the new measures are likely to work:

• To prevent safety violations: If and when the new rules become effective, employers would reportedly be required to develop plans for maintaining workplace security and eliminating safety hazards in the workplace, implementing those plans and evaluating their effectiveness.
• To prevent improper employee classification: Companies that have contract workers on their payroll, according to sources, would be required to compose written explanations of the reasons behind that classification and share those explanations with the government and the employees. The article indicates that some companies improperly classify workers in order to avoid Social Security taxes and benefit payments.

Likely Changes to Workplaces

The Labor Department?s proposed changes are still in the development stage, and once they?ve been finalized businesses will have an opportunity to respond, meaning that it?s likely to be at least a year before any changes are actually implemented.

And, as the article notes, many business groups are less than thrilled at the prospect of stricter regulations. One detractor apparently asserted that stricter requirements will mean more work for employers, but might not lead to any tangible improvements in safety or rule compliance.

Bankruptcy and Your Job

It?s important to remember, too, that you are protected from more than just hazardous conditions at work. While credit checks are sometimes used in the hiring process of employee, your decision to file bankruptcy shouldn't affect your employment status with an employer.

If you?re concerned about a personal bankruptcy filing affecting your job, consider consulting with a local lawyer about what your rights are. And, if you?re otherwise in good standing with your employer, it may be wise to set up a private meeting with your supervisor to disclose your plans and your reasons, and reinforce your commitment to your work.

Full post as published by The Bankruptcy Blog on May 08, 2010 (boomark / email).