Severance Policey - Descrimination or not?

I work in IT that will probably be outsourced. I would like to know if this is descrimination.
I had been employed there for 21 years and due to my pay scale I will receive 1 weeks pay X 16 weeks. Another employee that has 21 years of service in a higher pay scale will receive 1 weeks pay X 20 weeks.

1 answer  |  asked May 9, 2005 7:08 PM [EST]  |  applies to Pennsylvania

Answers (1)

Christopher Ezold
Treating different pay grade employees differently is not illegal discrimination.

Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.

That being said, you appear to be concerned about being treated differently than a person at a higher pay grade level, with equal seniority. Generally, treating different pay grade employees differently is not illegal discrimination. Discrimination is only illegal when it is based on age, race, gender, religion, nationality, disability and, in some locations, sexual orientation. Discrimination based on a bona fide seniority system, pay or employee grade levels, type of work, work location or other, similar, factor, is generally not illegal discrimination.

Furthermore, it is unlikely that bringing a claim over the 4 weeks of severance pay would be worth the time and money you would likely have to put in on the claim. You are likely to spend more to resolve the claim than you would receive.

ERISA, the Employee Retirement Income Security Act, does prohibit denying benefits in certain circumstances, or giving different employees within the same 'class' of employees differing benefits. However, you would likely not be in the same 'class' as the higher pay grade employee, and would likely have no ERISA claim. That determination woudl have to be made, however, after a review of the employer's policies was undertaken.

If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.

/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
401 City Line Avenue,
Suite 904
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com

posted by Christopher Ezold  |  May 10, 2005 09:04 AM [EST]

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