Does federal/state law require employers to deduct employee's new job salary from their severance?
I am being laid off in February and have been promised 21 weeks of severance. However, the HR representative has told me that if I were to find another job before the 21 weeks is up, my full severance pay will stop. I will only get the amount up to my previous salary (aka, new job pays 20, I used to make 30, severance pay will then be 10). She says that this is a legal issue, not a company mandate. I cannot find anything in the employment law that says such a thing. I think it is instead company policy. Is this correct?
2 answers | asked Nov 2, 2015 2:39 PM [EST] | applies to Ohio
Answers (2)
You are correct. No law requires an employer to offer severance pay. The terms and conditions of any severance pay plan are controlled by the employer offering it. Therefore, the company is within its rights to offer a reduced severance amount upon you finding new employment, but that is something that the company decides, not the law.
I suggest that you ask the employer for a copy of the severance pay plan or terms.
posted by Neil Klingshirn | Nov 2, 2015 2:48 PM [EST]
I suggest that you ask the employer for a copy of the severance pay plan or terms.
posted by Neil Klingshirn | Nov 2, 2015 2:48 PM [EST]
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