Legal Question in Business Law in California
Laid off
I was told by a co worker that if a company lay's you off they have to pay you some type of payment for your rent and other bills you have. Does this have any truth to it?
3 Answers from Attorneys
Re: Laid off
Most California employees are "at will" employees, meaning your employer can be terminated at almost any time for almost any reason that isn't prohibited by law. Unless you are protected by a collective bargain agreement or some statute specific to your job that requires a severance package, the general rule is that the employer does not owe you any severance pay. Your co-worker gave you faulty information.
Re: Laid off
What you've been told is not true in general. It might be true in a few instances where:
(1) The individual employee has a contract with the employer that calls for severance benefits of this kind; or
(2) The employee belongs to a labor union or works under a union contract where the labor union and the employer have a collective bargaining agreement in place that provides for this kind of severance benefit.
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