company defaulted on severance agreement
I have a signed notarized severance agreement with my past employer for 11 weeks pay at my regular hourly rate - benefits & taxes will be taken out as usual and I will be covered by health & dental until the end of this period. I received my first two-week check and the day before my next check was to be direct-deposited into my account I received a call from a VP of the company saying that I would not be getting the rest of my severance and would receive COBRA info in mail - company has hired an outside agency to help reorganize and the consultant told them to stop all severance payments. Don't they have a legal obligation to pay me?
1 answer | asked Jun 9, 2009 3:28 PM [EST] | applies to Florida
Answers (1)
They do indeed have a legal obligatin to pay assuming you gave them a release of liability or something else of value as part of the severance agreement. However, if the company goes into bankruptcy, you may have some difficulty collecting on the debt depending on the company's assets and liabilitites. Assuming bankruptcy is not in the picture, you could take court actioin to collect the money owed and if you prevail, the court could award you attorneys fees and court costs as well.
posted by Archibald Thomas | Jun 9, 2009 6:21 PM [EST]
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