Legal Question in Employment Law in New Jersey
My company put me in a new position in May 2010, then 2 weeks after switching me to the new job, told me that the job was now being relocated to Michigan. I could not relocate. They gave me a retention and severance package along with assurance that they were "confidant" that they would find me a new position before the termination.
That did not happen....I was laid off on April 1,2011. I signed the release agreement and am now unemployed. The release stipulated that I will receive 13 biweekly installment payments along with unused vacation and 3 months of money to cover Cobra.
Yesterday, the company offered to rehire me for a field sales position. Job has a base pay that is $19,000 less than I used to make, but has a commision plan (very vague in the offer letter), and a .46 allowance for vehicle. They have given me 24 hrs to accept
The Questions:
1. Retention and severance- am I still entitled to receive it if I take job (no stipulations in either the release nor the offer about it being terminated if I rehire)
2. The job pays less, If I refuse, can/will the company try to stop paying unemployment and severance?
1 Answer from Attorneys
Thank you for your LawGuru question. As to your first question, it depends on the terms and conditions of the severance agreement. Based on your comment, it seems that you'd still be entitled to the severance. However, many severance agreements routinely provide for the termination of benefits on rehire. I would need to review the agreement to advise you on that point. As to the first part of your second question, companies do not pay "unemployment" benefits---the state does. A refusal to take another position may reduce or eliminate benefits. Again, more analysis is needed before I can answer the question. As to the second part, the answer is the same as the answer to No. 1---it depends on what the agreement says. Please contact me ASAP so that we may explore your options and protect your legal rights. 973-921-0600.
Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.
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With best wishes,
Barry F. Gartenberg, Esq.
Please visit my website! www.bgartenberg.com or call me if you�d like to learn more about me or my practice. Thank you.
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