Can My Employer Change My Severance Pay?

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Due to the spread of COVID-19, many companies have been giving out severance packages to employees. Severance refers to compensation, benefits, or other assistance provided to employees who lose their jobs. Severance pay is often granted to employees upon termination of employment. The severance amount is usually based on the length of employment; however, under the Fair Labor Standards Act (FLSA), there is no legal requirement for severance pay. Our Louisville employment law attorneys explain if you have legal grounds to sue your employer if they changed your severance pay without consent.

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Can My Employer Change My Severance Amount Pay?

Employers can cancel or change their severance policies unless you and your employer have a written or oral employment contract stating that you will be paid a specific amount for your severance. If your employer is trying to eliminate your severance pay altogether, but your current employee handbook states that severance will be paid to employees who are laid off, may have a legal claim.

Can I Sue Despite a Severance Release?

In some cases, employers choose to pay severance because they want to ensure that employers won’t sue the company. This means that some workers who sign a severance package waive the right to sue the company for legal claims specified in the release. Many releases require the employee to waive the right to sue for any claims arising out of the employment relationship. It is best to speak to an experienced attorney to determine if you have a case against your employer.

Louisville Employment Law Attorneys

If you believe your workers’ rights have been violated, it’s in your best interest to speak to an employment law attorney as soon as possible. At Charles W. Miller & Associates, we represent workers throughout Kentucky and Indiana in all manner of employment law cases. Our legal team is well-versed in both state and federal employment laws.

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