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Hello, I was laid off last Tuesday, May 8 without warning, along with 100 of my fellow employees. We were given paperwork on being given a lump sum due to the WARN act, that would be payable 21 days from the separation date. Our termination date isn't until July 7th. Further paperwork says we will get severance pay of $250(my amount) no earlier then July 13. However, the FAQ pages say otherwise. it says we should be getting our severance pay after our last pay period this month. I had a family lawyer look at the paperwork. He said everything looks like it is in order but he isn't a labor lawyer. He said I could go to a labor lawyer but don't know if would be worth it. People are signing our agreements ( not needed to get the lump sum WARN pay) and sending them back which states we will not take action against them. Has anyone else had a similar situation? How did you deal with it? Thanks!
JFYI unemployment benefits related to severance pay also varies from state to state. In MA you had to wait till you got all the severance payments made before you could collect. In CA you could collect severance and unemployment at the same time. I don't know what PA rules are.
PA has court precedent that WARN pay is not earnings from work or severance, but represents "liquidated damages" payable by the employer. The payment in lieu of notice doesn't negate the fact that the employer violated the Act. In PA you can receive UC benefits and WARN pay concurrently. It's wise to contact UC by phone to let them know you are receiving WARN pay. Avoids issues when it shows up in wage record later. Gross Severance under $20,800 (2018) will have no effect on UC payments but must be reported to UC when filing the initial application. WARN pay and Severance pay should NOT be reported as earnings, vacation, holiday pay or anything else when filing bi-weekly claims for benefits. The General Release you have been given is pretty standard when severance is being offered to include union and non-union workplaces. Let me guess, Customer Service for Lord & Taylor??
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