forfeit severance pay if refuse transfer?
Our company based in MI is laying off the entire department in Burbank, CA. We haved an agreement guaranteeing us severance pay upon termination. They have recently offered other job "opporttunities" that require relocation and the are not equivalent positions. Our manager has said that if we refuse to take these new jobs, we will forfeit our severance package. Is this legal? If so, can you direct me to any legal documentation that supports this? thanks.
1 answer | asked Jul 29, 2003 5:33 PM [EST] | applies to California
Answers (1)
complicated question
your question is not as easily answered as you may think. a written agreement promising severance pay may very likely be covered by federal law (erisa) as a "benefit plan". if so, this would trump state law which would require that you be paid all "wages" upon "termination". if not, you may be entitled to the pay. also, the layoff may be covered by another federal law, "warn", and may therefore have special federal benefits applicable.
you need to speak to an attorney well experienced in employment law. your question indicates you do not wish to pay a consultation fee; this is a situation where the investment would be well worth it. you can find an attorney in your area by going to the cal employment lawyers assn website (www.celaweb.com).
good luck
janet m. koehn
posted by Janet M. Koehn | Jul 29, 2003 6:29 PM [EST]
your question is not as easily answered as you may think. a written agreement promising severance pay may very likely be covered by federal law (erisa) as a "benefit plan". if so, this would trump state law which would require that you be paid all "wages" upon "termination". if not, you may be entitled to the pay. also, the layoff may be covered by another federal law, "warn", and may therefore have special federal benefits applicable.
you need to speak to an attorney well experienced in employment law. your question indicates you do not wish to pay a consultation fee; this is a situation where the investment would be well worth it. you can find an attorney in your area by going to the cal employment lawyers assn website (www.celaweb.com).
good luck
janet m. koehn
posted by Janet M. Koehn | Jul 29, 2003 6:29 PM [EST]
Answer This Question
Sign In to Answer this Question
Related Questions with Answers