Legal Question in Employment Law in California

Mass layoff and application of Severance pay

The company I work (call it company A) for does distribution as a 3rd party contractor for company B. Company B will be taking over their own distribution and thus I will be laid off by company A. Company A has a written severance policy that provides a benefit of 1 weeks pay for every year worked, with no stipulation regrading having another job lined up. Company B has offered me a job which I plan on taking, but that job does not begin until after I will be laid off. Because of this company A says they do not have to provide me with the promised severance pay. Is this correct. If severance is a part of my employment package shouldnt I be entitled to it regardless of my acceptance of a future job offer. I thought that was the whole reason for advance notification of mass layoff, so that I could try to find another job.


Asked on 5/24/01, 6:18 pm

1 Answer from Attorneys
Keith E. Cooper Keith E. Cooper, Esq.

Re: Mass layoff and application of Severance pay

A written severance plan is an employee benefit covered by federal ERISA law (the California Labor Commission has no authority here). And, if what you say is correct, it would seem that you are entitled to the promised severance. But without seeing the plan, it is hard to say what your rights are. If you do not receive what has been promised to you, you should get in touch with the U.S. Dept of Labor or consult an employment attorney in your area.

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Answered on 5/30/01, 7:55 pm


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