Legal Question in Employment Law in Michigan

Severance pay

I was the US Federal Sales Director, living in Louisiana, for a Bay City Michigan Company. Sciax America, located in Bay City, MI is a subsidary of Sciax Technology headquartered in Toronto, Canada. I was terminated on 1/12/04 and upon termination by the company president,I was told that I would be paid through the end of January, paid for my 15 days of unused vacation and my outstanding travel expenses. The company president said that I would be paid on Friday January 16th. Payroll was met on Tuesday January 21st and I haven't been paid. I've sent the company an email requesting that I be paid. The total severance, unpaid vacation and expenses total over $8,400. If Sciax refuses to pay what are my legal options?


Asked on 1/21/04, 7:49 pm

2 Answers from Attorneys

Nick Pizzolatto, Jr. Pizzolatto Law Office

Re: Severance pay

Your case will depend on a number of factors. Therefore, you should sit down with an attorney to discuss all of the details of your employment and subsequent termination. Basically, under Louisiana law, you must be paid within 3 days of termination or on the next regular pay day. You must also be paid for "all other benefits earned" (vacation earned is one such benefit) at the time of termination. However, you MUST demand payment and thereafter, if not paid timely, you could be entitled to penalty wages of 1 days wage for every day they are late paying you if the payment was without just cause, up to a maximum of 90 days, AND you are entitled to attorneys fees if you bring suit for the unpaid wages. If the wages are owed, the attorney fees are accessed to the employer even if the late payment was for an acceptable reason. Again, make an appointment and get with an attorney.

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Answered on 1/22/04, 6:16 am
Larry Demmons The Demmons Law Firm

Severance pay, Vacation Pay and expenses

Your question has 3 parts - First, your entitlement to severance pay will depend on whether the company has a severance pay policy or whether you are entitled to severance pursuant to any employment agreement. Otherwise, severance pay is not legally required to be paid upon termination, regardless of the reason for termination. Second, payment of your unused vacation pay will depend on whether that vacation pay is earned or has accrued. If it is earned or accrued, then it is considered a wage within the meaning of the Louisiana Wage Payment statute and must be paid. If it is not paid after demand, the employer is subject to up to 90 days penalty wages at your average daily rate of pay, plus attorney's fees. Finally, reimbursement of your expenses will depend on company policy and custom of reimbursement. If the expenses you submitted are valid and of the type that have been reimbursed in the past, you shouldn't have a problem gettiing them. The employer may argue, however, that the expenses were not authorized and therefore not reimburseable. You should talk to an attorney about the facts of your case to determine your best options. Good luck.

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Answered on 1/22/04, 9:44 am


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