Employment

Are Fired Employees Eligible for a Severance Package?

are-fired-employees-eligible-for-a-severance-packageSeverance usually takes the form of pay and/or benefits that an employee receives once s/he leaves a company. Often severance takes the form of pay for unused vacation time, compensation for a late notice period, and some form of retirement benefit.

Severance Pay in California.  Are employers in California, though, required to make severance payments? Well, California calls severance pay “separation pay” or “termination pay” and typically doesn’t require it from employers.

By whichever name it takes, severance pay is not completely guaranteed in California, but you could receive some compensation if you were, for instance, involved in a mass layoff or signed a contract guaranteeing you severance pay.

Who’s Entitled to Severance?  Severance compensation is sometimes given to employees in California who have been terminated or who have decided to leave a company after years of gainful employment.

In many cases severance pay acts as a life raft to keep California’s recently unemployed afloat financially. The additional months of income can help someone recently unemployed make utility, mortgage and other kinds of basic payments.

As a general rule of thumb, though, an employer in California is not legally obligated to give his or her employees severance packages. The exception to this rule would be an employer-employee contract that stipulated a severance package.

Likelihood of Receiving Severance.  More often than not, severance packages are given to employees based on the employer’s capacity to make future severance payments.

Many employers, especially those running small businesses, simply cannot make severance payments and, therefore, omit severance packages from employment contracts.

Two other factors that may determine your likelihood of receiving a severance package in California are employment history and the way in which you left the company.

If you’ve been with the company for fifteen years, as opposed to two years, you’re more likely to receive a severance package.

Additionally, if you left the company and your employer on good terms – as opposed to a termination because of some workplace negligence – then you’re also more likely to get a severance package from your employer.

That said, employers in California are usually not legally obligated to make severance payments.

When Will You Receive Severance?  If your employer worked in a severance package into the employment contract that you signed with your employer, perhaps as an incentive to take the job in the first place, then you are legally entitled to receive severance.

In California, as in other states, severance payments could be much more than simply the employer thanking the employee for years of hard work.

Severance can, in some instances, preclude an employee from working with a company’s economic competitor or prevent a terminated employee from receiving unemployment compensation.

WARN and Compensation in California.  The Worker Adjustment and Retraining Notification Act (WARN) is a labor law in the United States that helps to protect terminated employees and their families from mass layoffs.

Specifically, an employer must provide 60 calendar days or more of advance notice to employees before mass terminations or disruption of plant operations, provided the employer employs more than 100 individuals.

In the state of California, if certain employers fail to give 60 calendar days of advanced notice, then California ex-employees may actually be legally entitled to receive severance payments for months after employment.

Summing Up California Severance.  In most cases severance is determined by how long the employer has been with the company and the employers financial ability to make severance payments.

An employer in California is usually not required to provide severance. Exceptions are mass layoffs protected under WARN and employment contracts that stipulate severance payments upfront.

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Employment

Why Would a Business Need an Employee Handbook?

why-would-a-business-need-an-employee-handbookDoes Your Business Need An Employee Handbook?

In today’s society, it is important to understand that any dispute can lead to potential litigation. Employers and employees are ending up in litigation procedures at an ever increasing rate, meaning it should be in the utmost of interest to employers that they protect themselves by using every resource and tool possible to their advantage.

A well-defined employee handbook is one of these resources that can aid an employer against any claims brought against them. An employee handbook is not just a company policy overview; it can be used as a tool to prevent litigation issues that may arise. This manual is your handwritten policy of procedures and it serves to give employees a better understanding of your company policies by:

• Giving employees a better understanding of their rights and responsibilities
• Providing consistent employment relationships
• Setting forth a philosophy on the employers part by maintaining a union free environment
• Giving your employees the comfort and peace of mind knowing that they are working in a professional environment

What Exactly Is An Employee Handbook?

An employee handbook is your written documentation which provides an overview and explanation of your company policies and procedures. This document is for both existing employees and new ones hired over time. They do not need to be long and over-explained, but they should contain certain information, such as:

• Equal employer opportunity statement
• At-will employment disclaimer
• Benefits information
• Anti-harassment policies

Your company’s employee handbook is a human resources tool that essentially sets all the standards that your employees must follow. Management can also refer to this guide when situations arise with employees who violate workplace policies and guidelines set forth in the manual. Management must be trained properly in the manuals contents so that they are able to deal with any situations that may come from workplace related issues.

Is Your Business Too Small To Have An Employee Handbook?

Some employers think that just because they only have a handful of employees, that they don’t need to institute an employee handbook. They think that simply telling everyone the rules will be enough. This could not be further from the truth. Without written documentation of expectations, you could put yourself in a situation where you have nothing to back up your enforcement rules. Many states require that an employer have a handbook in place if they even have only one employee. This is to protect the rights of an employer in the event a litigation battle comes about.

You can protect yourself legally when it comes to intellectual property, copyright issues and trademarks associated with your company. An employee handbook is not just a pamphlet on company rules, it is an invaluable tool used to protect everyone involved within the organization.

What Should You Put In Your Employee Handbook?

As mentioned above, there are a few key elements that you will want to make sure are included when you write your own handbook. A very well written and thought out manual will make sure you have all bases covered to protect yourself, while giving your employees a better understanding of what is expected of them. A poorly written and quickly thrown together manual, however, could have devastating consequences to you and your company should any case ever be brought to litigation. If you do not choose your words carefully, your handbook could be misconstrued, which could leave you vulnerable when trying to defend yourself against accusations. Arm yourself with the best resource of all and implement a well-crafted employee handbook.

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Employment, Uncategorized

Should I be Paid by My Employer While on Jury Duty?

should-i-be-paid-by-my-employer-while-on-jury-dutyOne of the most important parts of our judicial system in the United States is the right to be tried by a jury of your peers. Those peers are selected from a pool of eligible jurors, usually from the area that the case is being heard. At one time they were selected from the list of registered voters. However, today the list is compiled from people who file taxes, have driver’s licenses, bought a house, and many other ways. If you are a citizen in the US, you can be called to serve jury duty. Juries are usually made up of six to twelve jurors.

The jurors who are called upon to serve jury duty are required by law to serve for however long the trial takes. While this is one of most important civic duties a person can participate in, it can be difficult for a juror to put their life on hold while participating. Their families and their jobs can suffer. There are many people who try to avoid serving on jury due to this disruption. One of the biggest concerns is loss of pay. While the Federal government does not have any specific law handling pay during jury duty, jury duty is somewhat covered by the Fair Labor Standards Act (FLSA) ensuring that an employee cannot be fired for serving jury duty. The matter of pay during that service is covered by State law and each state has different laws for handling this issue.

There are currently seven states that require employers to pay employees – Alabama, Colorado, Connecticut, Massachusetts, Nebraska, New York and Tennessee. There are also eleven states who do not allow employers to require employees to take any kind of paid leave, such as sick leave or paid vacation time, while serving jury duty. But each state has different specifics for jury duty. Some of these laws include:

  • Payment of up to a specific amount for a set number of days
  • Payment of full time wages during absence
  • Requires unpaid leave for the duration of jury duty
  • Prohibits penalizing an employee for time spent in jury duty
  • Employee must retain the same position as when they left for jury duty

While the laws vary from state to state, most protect the employee from being penalized for participating. However, the majority of states do not require the employer to provide any type of financial compensation for time spent on jury duty. The states that do require employer payment to the juror, put limitations on it. Most only pay for three to five days of jury duty participation. Also, the amount is limited, such as no more than $50.00 per day. These requirements are also usually limited only to full time employees. So, a part time employee who gets called to jury duty would not be eligible for this benefit.

Serving jury duty is an important civic service, the small amount that the courts pay to those who participate on the jury does not usually make up the loss in pay. With so few states requiring employers to pay wages to employees on jury duty, it is no wonder so many are hesitant to take part in jury duty. It is not unheard of for cases to drag on for much longer than the jury members can afford to lose. While they are assured of having their jobs when they return, the financial burden may be tougher to overcome.

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Employment

Wrongful Termination

wrongful-termination Everything you need to know about wrongful termination will take a few minutes to learn, and could be immensely helpful. If you are wrongfully terminated, you have certain rights, and a judgment in your favor will have one or more benefits depending on the laws of your state and the nature of the wrongful termination.

What is Wrongful Termination?

First, you need to establish that you were wrongfully terminated. You may believe that you have an inherent right to work for the company, but the truth is that most states adhere to what is referred to as an At-Will Clause. What this means is that employers and employees have the right to terminate employment at will, without providing for a due cause or allowing for severance or other post-termination factors. There are 9 states which do not have an At-will Clause:

  • Alabama
  • Florida (allows for only three exceptions)
  • Georgia
  • Illinois
  • Louisiana
  • Maine
  • Nebraska
  • New York
  • Rhode Island

If you are terminated for an illegal reason, you need to identify that cause. There are not many causes available, and it will be up to you to provide evidence that such an infraction occurred. With few exceptions, the causes are:

Breach of contract – If you have an employment contract, either verbal or written, or if the company has an employee handbook which states or infers that a contract exists, you can only be terminated under the provisions of the contract.

Discrimination – Under the regulations of the Equal Employment Opportunity Commission, EEOC, you cannot be discharged for race, creed, age, or gender bias.

Sexual harassment – Any form of sexual harassment in the workplace is prohibited. Performing such harassment is grounds for termination, reporting it or being victimized by it is not.

Violation of state or federal labor laws – This provision can take many forms, including firing an employee who is on leave for reasons allowed under the law, such as a medical emergency. Other labor laws are designed to protect those who work overtime.

Retaliatory firing – You cannot be fired for refusing to perform an illegal act, even when ordered to do so. Likewise, you cannot be terminated for reporting an employer who permits, requests, or encourages illegal activity, including violating OSHA regulations.

How to Respond to Wrongful Termination

If you are wrongfully terminated for any of these reasons, you need to document the infraction to the best of your ability. This includes acquiring copies of pay records, collecting witness accounts, or providing other proof. You may have as little as 90 days to get the complaint filed, so proceed accordingly.

Do not lose your temper with the employer, make threats, or perform unprofessional actions. If you have been terminated, get witness testimony outside of the workplace. Do not re-enter the workplace once you have been asked to leave.

Once you have collected the proof, file a complaint with the EEOC. The commission will examine the evidence provided and decide whether a wrongful termination case exists. If the EEOC rules in your favor, you may be eligible for lost wages, job reinstatement, and any job benefits that were denied.

If the EEOC rules in favor of the employer, you have the right to file a civil suit against the employer. In some cases, this suit can be filed in tandem with the EEOC investigation, but it should usually be reserved as a final attempt to secure justice. Filing a civil suit while an EEOC investigation is in progress could potentially damage both cases.

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