Legal Question in Employment Law in Washington

termination for cause

My employment agreement provided severance in the event of termination. I was terminated in a March restructuring but received no severance.

I later contacted the company to collect my severance. They then said I was terminated for cause, which precludes severance. Their definition of cause is ''customary measures such as poor performance.''

I never received a poor performance appraisal or any other indication of poor performance. I did however, witness multiple incidents of misconduct by senior officers. They offered severance if I would sign an onerous release of claims and noncompete. I declined.

When I joined the company I asked about reasons for termination, I relied on their answers that ''customary measures'' for cause would be a fair standard. Can the company invent its own interpretation of ''customary measures such as poor performance'' or do they need to meet some reasonable guidelines? Since the failure to pay severance is willful, I am considering a lawsuit for damages (approaching 6 figures) plus attorneys' fees.


Asked on 1/03/09, 8:05 pm

1 Answer from Attorneys
Susan Beecher Susan L. Beecher, Atty at Law

Re: termination for cause

When you say, "employment agreement", are you referring to a written contract or a verbal understanding? If a written contract, then your rights to severance would be determined by the terms of the contract. Otherwise, your argument is a lot weaker. Under Washington law, you are not entitled to severance pay unless it is provided for in a contract. If your contract is oral, it is still a contract, but proving your case may become difficult.

You may want to talk with an attorney in circumstances where you and the attorney can take a close look at the details to determine whether you have a case or not. Many attorneys will do an initial consult at no charge, but either way, the details will determine your rights and options in this case.

Good luck.

Read more
Answered on 1/04/09, 12:08 am


Related Questions & Answers

More Labor and Employment Law questions and answers in Washington