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Picking and chosing termination pay California

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  • Picking and chosing termination pay California

    Effective May 1, my position has been eliminated after ~18 years. There has not been any written agreement on the number of termination pay weeks since 2000 so they have agreed to pay the number of weeks in this employment agreement. My annual pay was to paid at a higher pay rate. They now want to pay my termination weeekly pay at my new reduced annual rate of pay that is ~31% less. They are picking and chosing my annual pay rate from my current arrangement they imposed effective Jan 1, 2009 that I never signed but pay the number of weeks from 2000 agreement. They consider me an "at will employee". Since they are using my termination pay weeks from the 2000 agreement, shouldn't they also pay it at the annual pay rate in my 2000 agreement?

  • #2
    When you say, termination pay, are you referring to severance pay?
    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.

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    • #3
      Termination pay

      Yes termination pay and severance pay are the same thing.

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      • #4
        Originally posted by tomtahoe View Post
        Yes termination pay and severance pay are the same thing.
        Not necessarily and we try not to assume here. Termination pay might also mean final wages or pay in lieu of notice. Severance is by far the much more commonly used term.
        Last edited by Pattymd; 04-27-2009, 03:50 PM.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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        • #5
          And since severance pay is not required by law, there is likewise no law dictating at what rate it is paid out.
          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.

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          • #6
            Severance pay

            They used my employment agreement to determine the number of weeks severance pay so why shouldn't they use the same agreement to determine the pay rate?

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            • #7
              There is no law requiring them to do so.
              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.

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              • #8
                Originally posted by tomtahoe View Post
                Effective May 1, my position has been eliminated after ~18 years. There has not been any written agreement on the number of termination pay weeks since 2000 so they have agreed to pay the number of weeks in this employment agreement. My annual pay was to paid at a higher pay rate. They now want to pay my termination weeekly pay at my new reduced annual rate of pay that is ~31% less. They are picking and chosing my annual pay rate from my current arrangement they imposed effective Jan 1, 2009 that I never signed but pay the number of weeks from 2000 agreement. They consider me an "at will employee". Since they are using my termination pay weeks from the 2000 agreement, shouldn't they also pay it at the annual pay rate in my 2000 agreement?
                If you have not signed a new agreement since 2000, that is the agreement that should be followed. However, it should be at your current rate of pay. Especially since that rate has been effect since January 1.

                Had there not been a pay decrease, you wouldn't even question them using the current rate of pay.

                I am sorry that your position has been eliminated, sadly I know the feeling. At least you have a severance pay agreement.

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                • #9
                  Originally posted by Hoogieb View Post
                  If you have not signed a new agreement since 2000, that is the agreement that should be followed. However, it should be at your current rate of pay. Especially since that rate has been effect since January 1.

                  The OP said the agreement specified only the time, not the amount. Although it is most common that the current pay rate be used, there is no LAW that mandates at what rate the severance pay must be calculated.

                  OP, if you want to take all the documents to an employment law attorney, feel free.
                  Last edited by Pattymd; 04-27-2009, 04:15 PM.
                  I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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                  • #10
                    Severance pay

                    It did specify the annual pay rate in the agreement they used for my number of weeks of severance pay. Why should I be paid at the current reduced pay rate when the agreement used for the number of weeks used for severance pay had an ~31% higher annual rate of pay? Does not seem right for them to pick and chose what they want for their benefit and not for me.

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                    • #11
                      So, as I already said, take the agreement to a local attorney versed in employment law, and see if it rises to the level of a contractual obligation for this specific issue.
                      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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