Legal Question in Employment Law in California
I worked for an employee who hired "Canvassers" to promote their program and assured them that they would work consistently, they were w'4 employees. They essentially used them, and then didn't have the decency to fire or lay them off. They also did this to several corporate employees in which I remain in contact. In terms of the Canvassers, I was told not to be honest with them so they would perform better. They did this to a dozen employees. I was responsible for building up their Arizona based company in Supplemental Educational Services in California. Then, they terminated me as the Regional Manager with no cause on 02/08/10. My final paycheck came to me via Fed Ex ( I work out of my home in California and their corporate office is in Arizona). I think they used me to build up the company and then run it out of their corporate office to spare the cost of my salary.
They recently presented me with a "severance agreement" that implies that we agreed to separate on neutral terms (even though they obviously fired me, they sent out a mass email stating that I no longer work for the company, "effective immediately"). My former boss's language changed since he terminated me on 09/02/10 to imply that the release from my position was a mutual agreement.
I was completely blindsighted by my termination. However, I shouldn't have been suprised since I was aware of how they neither fired nor layed off emplyees in their main office.
Please give me some advice, I am worried about unemployment, whether or not I should sign the severance agreement (they are offering me $3,800 which is tempting because I really need the money). More importantly, however, I have a feeling what they have done to countless employees is not only illegal but immoral.
Thank you so much,
1 Answer from Attorneys
While it is understandable you feel you have been used by the employer, you have not stated any reason not to sign the severance agreement. Unless you signed a contract that expressly stated your employment was for a fixed period of time, your employment is presumed to be terminable at the will of the company, which means they could terminate the employment relationship at any time, with or without cause. There is no guarantee of continued employment.
If you believe you were fired for a reason the law prohibits, you will need to run this by an employment lawyer to explore the evidence.
The EDD does not care, so much about what the severance agreement says, as much as it will look at who caused the separation. According to your statement, it was caused by the employer. This is what you will tell unemployment. If the company lies and says you voluntarily resigned and the EDD denies your application, appeal and ask for a hearing. You could also check with the company first, to make sure they are not going to lie. Put them on the spot and ask them directly, what are they going to say?
The severance agreement will also look better on your resume than having to tell prospective employers that your were fired.
Good luck.
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