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Working beyond my severance date in California

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  • Working beyond my severance date in California

    Because of a merger, my job (IS software) is being eliminated and moved out of state. I signed a separation agreement back in March that I would receive a very generous severance package if I stayed until August 11th, and agreed not to sue the company.

    The system conversions are running behind schedule and I (along with others) have been verbally asked to stay until the conversions are complete, but we were not presented with any extension forms to sign. We were told that once we have met the separation date requirement, we could voluntarily quit, or stay until the conversion project was completed. We would then begin to receive our severance package (weekly pay for "x" number of weeks, based on years of service, 1 yr paid medica/dental/life, $2,500 education money.) There is nothing in my separation agreement that adresses what happens beyond the separation date.

    I have not agreed to a new separation date and my separation date has passed. I still receive weekly paychecks and benefits from my employer. My questions are:

    1) If I apply for another position in the company that is remaining in California, will I still be entitled to receive my severance package since I met all the requirements in my written separation agreement?

    2) Since I don't have a new separation date, and my skills are needed for a few additional months, will my voluntary resignation at this point jeopardize my severance package? By agreeing to stay employed with the company in an open ended manner, have I in any way consented to a new separation date? If I find another job soon I plan to turn in my resignation.

  • #2
    It depends on the agreement you signed. Have an attorney review it.
    Megan E. Ross, Esq.
    Law Offices of Michael Tracy

    Disclaimer: The above response is a general statement of the law and should not be relied upon as legal advice. It only assumes the facts that are stated in the message. The above response does not serve to form an attorney-client relationship.


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