Legal Question in Business Law in New York

Termination of Employment

Is there a law that requires an employer to pay severance to a terminated employee if they we cut due to downsizing, and also is there a specific timeframe in which a terminated employee should be compensated for hours already completed?


Asked on 2/08/02, 12:33 pm

1 Answer from Attorneys
John Friedman Law Office of John K. Friedman

Re: Termination of Employment

There is no federal or NY state law that requires a company to pay severance due to downsizing or any other reason. An employment contract, however, may require severance. If you have (had) such an agreement, check it to see if it contains such a provision. As to unpaid wages, companies are essentially required to pay for these on their next payroll cycle (weekly, bi-weekly, bi-monthly, monthly--whatever is that company's policy). Of course, if a company declares bankruptcy, that is another issue entirely.

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Answered on 2/08/02, 2:09 pm


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