Legal Question in Employment Law in California

SF Bay Area: ERISA/Severance Pay

I was employed by company A for 11 yrs. After 6 yrs, my position was

outsourced to company B, considered a partner company, for 2 yrs. After

that, B dissolved the position and A took us back in the same positions. All

the while I was working in A's office doing the same job. When going back

under A's payroll, I was told by A's HR that as a returning employee, all

benefits would remain except only vacation would reset. I worked 4 more

years with A before my position was eliminated. A has published severance

policy of 1 wk pay per year of service. A paid me 4 weeks severance. I believe

I am owed for the first 6 yrs. They disagreed and offered a compromise of 2.5

wks added severance. I was OK w/this until I rec'd an email from HR w/a legal

doc requiring me to sign and waiving all future rights to bring legal action

(inc. workers comp or wrongful termination). I am apprehensive of doing this.

I don't believe I should waive any rights. Curious to see if I should fight for 6

wks severance or fight for not waiving rights or just sign my rights away and

accept the compromise.


Asked on 9/28/05, 1:40 am

3 Answers from Attorneys

Tom Walker Law Offices of Thomas C. Walker

Re: SF Bay Area: ERISA/Severance Pay

That's your decision, someone else can't answer for you.

ERISA's had a "same desk rule" that generally says if you are doing the same job for essentially the same org. you never left your original employer. I have no idea if your severance and/or vacation pay plans are ERISA plans. I guess what the sev/vacation "plans" docs say or don't say might give you something firm to consider.

You have to decide whether there's enough in play to warrant paying an attorney getting involved or putting the present offer at some risk. Good luck.

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Answered on 10/03/05, 4:29 pm
Michael Kirschbaum Law Offices of Michael R. Kirschbaum

Re: SF Bay Area: ERISA/Severance Pay

Let me see if I understand correctly. You were okay with compromising for the additional 2.5 weeks of severance until they asked you to sign a release of all claims. Do you believe you have other legal claims you are giving up if you sign? If so, and those claims are more valuable to you than the balance of the severance, then don't sign.

But if you have been fully paid your wages, don't have any work related injuries, were not discriminated against or wrongfully fired, what is the problem?

Releases are rountinely required by employers when they pay severance. It doesn't necessarily mean they beleieve they have done something wrong, it is simply a way to tie up loose ends and not have to worry about employees bringing lawsuits against them a year or two down the road.

Of course, it would help to have the agreement and the severance plan reviewed by an attorney to determine if it is a fixed plan governed by a federal law known as ERISA, or simply a standard general release in return for payment of some severance. But litigation is expensive, so the amount of money better be worth it to justify your "fight" for the full 6 weeks.

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Answered on 10/03/05, 4:40 pm
Patrick Turner Patrick E. Turner Inc. APLC

Re: SF Bay Area: ERISA/Severance Pay

The only additional information I can provide beyond that given to you in prior answers is that the release language applying to "worker's comp" may not be enforceable. Any compromise of workers compensation injury claims must be approved by a Worker's Compensation Appeals Board judge. However, it would be worth the consultation fee to discuss your situation in depth with an employee rights attorney before making the final decision. If you're over 40 years of age, you probably have 21 days from the time they gave you the agreement to see consultation.

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Answered on 10/03/05, 6:02 pm


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