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Have a Legal Question?
Typically, severance pay laws do not require that employers have to give a severance package to any of their employees that are fired or laid off. While most companies do offer these kinds of packages, it’s not mandatory. However, in your case where a company is selling, you should be receiving a severance package.
While this is not the case in all states, many do have laws in place that require employers to offer terminated employees severance pay when either they are let go because the facility they work in is closing or the company is laying off a lot of their employees. Of course, it depends on the state you live in and the state’s laws, but in this case most employers have to hand over a small amount of severance pay. The best way to figure out what the law is in your state is to contact your state’s labor department.
This is not the only situation, though, where an employer is legally obligated to lend a severance pay to their employees. Employers are legally require to give their terminated employees severance pay if they misled their employees into thinking that they would be paid severance for their time with the company. There has to be evidence for this such as a written contract, a promise listed in an employee handbook, a history within the company of delivering severance packages to employees in the same boat or even just an oral promise. Even when there isn’t a legal requirement, many companies give their terminated employees a severance pay if they were long-term employees. These companies may feel it is the right thing to do, as sort of a thank you for the employee’s loyalty and hard work.
If you want to make sure that you are entitled to a severance package when the business you work for is selling, you must speak with an expert in an area. Talk with a lawyer that is located right in your state. They will be able to tell you what the laws are where you live and if you qualify for a severance package. With this information, you can make sure that you are not being taken advantage of and are receiving exactly what you deserve. These severance packages make a huge difference to you and your loved ones’ financial well-being so this is definitely a step you should look into.