Philadelphia Area Wage and Hour Lawyers Who Represents Pennsylvania Employees
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Apparently, the Pennsylvania Department of Labor is taking the position that retention bonuses are the same as severance for unemployment purposes. This is affecting the rights of hundreds of displaced Pennsylvania workers, who are being denied unemployment benefits.
Here is an internal memo from the Department of Labor
addressing this issue. It reads in
pertinent part as follows (ALL CAPS in original):
Retention Bonus Paid When You Are Asked to Stay |
Retention or "Stay On" Bonuses Are Not Severance Payments
Contrary to what the DOL's internal memo says, retention bonuses are not paid because a business is closing. They are paid to keep an employee working UNTIL a business closes.
Retention bonuses are paid to encourage people employed by companies that have been sold ("Company Sold") to another company ("Buying Company") to remain in the employ of Company Sold for a period of months, after which they will be laid off when Buying Company assumes control of Company Sold.
Usually, in addition to a retention bonus, the to-be-displaced employees are also paid a severance when the change in control occurs.
Severance Paid When You Are Told to Leave |
Dead Wrong on This One |
If you appeal such a determination by the Department of Labor's Service Center, and prepare properly for the ensuing Referee Hearing, you can win this case (even if you have to subsequently appeal to the Board of Review).
HERE ARE SOME OTHER LINKS
YOU MAY FIND WORTHWHILE:
Should I Hire a Lawyer for
My Unemployment Appeal Hearing in Pennsylvania?
Pennsylvania Unemployment
Lawyer - Willful Misconduct Referee Hearings
I Want to Quit My Job and Get Unemployment Benefits in Pennsylvania
Pennsylvania Unemployment
Determination of Financial Eligibility - PENNSYLVANIA UNEMPLOYMENT LAWYERS
The Burden of Proof in a
Pennsylvania Unemployment Appeal Referee Hearing
This promises to be a contentious legal issue, as the Department of Labor has been, and remains, dead serious about maximizing the applicability of the 2012 severance amendment in order to preserve unemployment fund assets. Since it it involves a somewhat tricky legal analysis, and will likely lead to appeals, you may want to consider counsel for your Referee Hearing is this situation arises in your life.
HERE ARE SOME OTHER LINKS YOU MAY FIND
WORTHWHILE:
Severance and Pennsylvania Unemployment -
Doing the Math
Voluntary Severance Offers - How to Negotiate
and What to Look for When a Company Offers Severance
Philadelphia Area Employment
Attorneys Representing Employees
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