Employer not following through with agreed severance package
I recently received a severance package from my company due to a downsize. In the agreement I was awarded a cash payment as well as 5 months of free health coverage. The payment came, great! BUT the health coverage has yet to be initiated. It was to run from Jan 1 to May 23. Todays date is Feb 28. Since I agreed to the severance document and my former employer is not providing me with what was agreed upon, do I have any rights? or what are my options?
1 answer | asked Feb 28, 2007 08:59 AM [EST] | applies to Pennsylvania
Answers (1)
You may have a wage claim.
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, you may have a wage claim. In Pennsylvania, severance pay and benefits are considered wages. Failure to pay wages can result in a 25% penalty and the payment of your attorney fees in collecting your wages due.
If you have an agreement for you to receive health insurance, the company's failure to provide it may also create liability for health care payments you have had to make which were not covered.
If the company has refused to provide health insurance after you notified them of their failure, or if they ignore you, the only course you have is to sue. Health care providers will not care that the employer breached its agreement; they'll demand payment from you directly, or might not treat you at all.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Feb 28, 2007 2:03 PM [EST]
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, you may have a wage claim. In Pennsylvania, severance pay and benefits are considered wages. Failure to pay wages can result in a 25% penalty and the payment of your attorney fees in collecting your wages due.
If you have an agreement for you to receive health insurance, the company's failure to provide it may also create liability for health care payments you have had to make which were not covered.
If the company has refused to provide health insurance after you notified them of their failure, or if they ignore you, the only course you have is to sue. Health care providers will not care that the employer breached its agreement; they'll demand payment from you directly, or might not treat you at all.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Feb 28, 2007 2:03 PM [EST]
Answer This Question
Sign In to Answer this Question
Related Questions with Answers