You might be wondering if you qualify for any kind of compensation under California law if you were fired or laid off from your job. In general, your employer is required to compensate you for all hours worked as well as for any vacation time that was not taken. Beyond that, California law does not oblige your employer to give you any sort of severance compensation.
Many companies do pay severance
However, some firms could provide a severance payout to workers who have been let go. When an employee has been with the firm for a long period, this frequently occurs. Employers generally ask you to sign a severance agreement in return for this severance payment. You should always get legal advice from an experienced California employment attorney before signing any of these agreements since you can be giving up significant rights.
Back to basics – what is severance pay?
Severance pay is a type of compensation that a company gives to an employee in addition to their normal salary. It often comes in the form of a lump amount and is meant to provide employees with a financial buffer. Employers are not required to give employees severance compensation under California or federal law.
However, the specifics of severance compensation may be outlined in employee handbooks or an employment contract. A severance package is what it is called when severance money and other benefits, such as health insurance or job training, are included.
Why you should not sign a severance package without careful consideration
Employers frequently need employees to sign a contract before they may get their severance compensation or package. These contracts could ask a worker to waive their ability to sue their employer for harassment, discrimination, or wrongful termination. The employee may also be prohibited from discussing the circumstances behind their termination or the agreement itself.
Employees are not permitted to forego certain rights under federal or state law, such as the right to file a wage and hour claim or act as a whistleblower. Other waivers, however, may be legally enforceable if you join into the agreement freely. For this reason, you ought to have a California employment lawyer look it out. A lawyer can evaluate the contract, recommend revisions, and inform you of your legal rights and choices.
At the same time, a California employment lawyer can discuss the specifics of your dismissal with you to see whether there is any legal justification. While a layoff is typically simply that: a layoff, there are times when an employee is fired unlawfully and the company gives severance as a means of avoiding a legal lawsuit. You may make sure that your rights are upheld by engaging with an attorney.
PLBH offers clients advice on a variety of employment-related matters, such as those including discrimination, harassment, and wrongful termination. Call our legal office at (800) 435-7542 or send an email to info@plblaw.com if you have been dismissed and your employer has requested you to sign a severance agreement to arrange a consultation with a member of our staff.