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severance pay California

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  • severance pay California

    Hi All,

    My aunt is working for a well known filter company, she has been working their for 27 years, she is an hourly employee.
    her company is doing mass lay off as they are moving the manufacturing to another state.

    they are offering all hourly employees 1 week per every 10 years worked so she would only get 2 weeks
    but they are offering all salaried employees 1 week per year worked.

    I'm sure the answer is yes, but its just sad.

    is there any laws governing severance pays at all or is it strictly a company policy type thing?

    thank you in advance fo your response.

  • #2
    Strictly company policy unless it somehow unintentionally discriminates due to something like age,gender race if the hourly workers but that would mean the current population already had those issues if most are getting laid off now...


    • #3
      There are only three states where severance is ever required by law. California is not one of the three. Even in the three states where it is sometimes required, it is only required in specific circumstances and not universally.
      The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.


      • #4
        Yes, sorry, they are completely within their rights to structure it however they want, or to not offer severance at all.


        • #5
          The only exception would be if the WARN Act (or state equivalent) is triggered as this is a layoff/plant closure. If certain notice is not given, there may be a period of pay required in lieu of that notice.
          I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.


          • #6
            WARN also sometimes applies if a large portion of the workforce if affected. There is a CA version of the WARN (CA-EDD) in addition to the federal version (DOL).


            "Reality is that which, when you stop believing in it, doesn't go away".
            Philip K. **** (1928-1982)