Legal Question in Employment Law in California
Termination Agreement
My husband is currently a V.P. with a small firm here in California. He is being terminated due to company financial difficulties. The owner has promised my husband he will have insurance coverage thru the end of the year, possibly longer. My husband has asked to have that in writing. So far, no response to that issue. Next, he was given a check for vacation pay for this year, (accrued from anniversary date in April up to present). When he asked where the rest of his accrued vacation, was, he was told by the V.P. Finance (also handles HR) that they didn't keep any records of the accrual. According to our records, he has at least 17 weeks of vacation accrued. The company policy states vacation is accrued at 2 weeks per year up to 6 years. After 6 it is 3 weeks per year. He has been there 12 years as of this past April. V.P. Finance has also, in the past, failed to make the contributions to his 401k because she needed the money to pay company bills. I'm real sure she has no idea that this it is against the law to play with fiduciary funds. She also has done personal shopping with a comp. credit card and paid the bill with a company check. What is our recourse at this time for all that has occurred?
2 Answers from Attorneys
Re: Termination Agreement
The terms of health insurance continuation as well as other financial and non-financial terms can be set forth in an negotiated separation agreement.
If the Employer has no records as to vacation, your records will most likely hold up. A demand, including penalties and interest, followed up with appropriate legal action would be the proper approach.
The 401K issues will expose the employer to personal and company liability under ERISA, a Federal law designed to protect your rights under employee benefit plans. Clear thinking management will want to avoid such headaches and resolve the matter promptly.
If you would like further information, feel free to call.
Re: Termination Agreement
Recourse on the 401k problem is suit against the company and individuals involved for violation of the federal laws under ERISA, and conversion/theft.
Recourse on accred benefits is also federal suit under ERISA.
It may be possible for an attorney to get all issues resolved by threatening such suit, along with demanding severance / seperation pay agreement terms. Contact me if interested in doing so.
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