Being forced out with severance package

[Buayaguy]

What is the name of your state (only U.S. law)? Louisiana

My store manager (I work retail sales) called me the other day on my day off and asked if I had a few minutes to stop by the store. I said sure (since I was already out doing stuff), and stopped by. We went to the back office and he told me that due to poor performance lately, that several associates (not just me) across several of the locations were being let go and offered a severance package. I got the initial paperwork just to look over, but the copy I would need to sign would come in the mail shortly after my last day, which is scheduled to be May 20th.

I had heard a few days prior that another coworker got the same deal, and her last day is the same as mine. Another coworker mentioned that I may want to seek legal counsel to try to increase the severance deal. As it stands now, I would get 9 weeks of severance pay for 9 years of continuous service, the pro-rated balance of my front-loaded PTO time (I took a week in February, but I think I should have at least another week that would be available for payout), if I elect health continuation under COBRA (which I probably will), they'll provide me with 2 months of company paid COBRA benefits, and then there's something about "Bonus eligibility and payout based on plan terms", which may or may not apply to me - sounds like something managers or corporate level employees may get - I've never gotten a "bonus" at this job.

Also for extra information - my manager never said "fired", so it sounds to me like I'm being laid off for performance, rather than "terminated for cause". Also, another coworker several months ago (also a full-timer, like I am) was offered a slightly different deal - they could either take the severance package OR go down to part-time (supposedly for the company to save on full-time benefits). They are now part-time. But I wasn't offered that choice. "Your last day is May 20th, and if you sign the paperwork, you'll get severance. If you don't, you'll get nothing", basically.

The coworker who's also leaving has apparently contacted a lawyer about this, so I will be asking her about it as well, but I guess the question here is - would it be a worthwhile case to try to seek more than they're offering? I obviously have a few weeks until I get the paperwork, and I'm just trying to do some research on this in advance.

Thanks for any advice you can provide.

 

[adjusterjack]

Sorry, but you are employed at will and can be fired for any reason or no reason. You have no leverage. Fired and laid off mean the same thing - no work, no money.

"Your last day is May 20th, and if you sign the paperwork, you'll get severance. If you don't, you'll get nothing", basically.

Exactly my point.

The coworker who's also leaving has apparently contacted a lawyer about this

"Contacted" - maybe. But paying a lawyer $300 per hour for nothing, unlikely.

if I elect health continuation under COBRA (which I probably will), they'll provide me with 2 months of company paid COBRA benefits,

That's good.

Seems like you are being offered a generous severance package where the employer isn't obligated to give you anything. Don't poke the bear.

 

[Buayaguy]

Sorry, but you are employed at will and can be fired for any reason or no reason. You have no leverage. Fired and laid off mean the same thing - no work, no money.

Seems like you are being offered a generous severance package where the employer isn't obligated to give you anything. Don't poke the bear.

Fired and laid off have the same end result of no work, no money, but if you're terminated for cause, wouldn't that make it less likely that you could apply for unemployment? My manager actively suggested that I apply after my last day, which of course I'll be doing...

Oh, I didn't know they aren't obligated to give you anything with a layoff - in that case, I probably won't bother with a lawyer...

 

[cbg]

There are only three states where severance is ever required by law; even in those three states it is only required in limited circumstances that do not apply here; your state is not one of the three states.

I wouldn't waste any money on a lawyer. I can't see that the employer has any incentive to provide you with more than they already have (which is fairly generous) and you don't want to be burning bridges by seeming to threaten them with legal action when you do not have any cause to. You are going to want these folks as references at some point.

 

[adjusterjack]

if you're terminated for cause, wouldn't that make it less likely that you could apply for unemployment?

The criteria for UI is misconduct. Cause and misconduct are two different things. "You keep a messy desk" is cause. "You peed on your desk" is misconduct.

That's overly simplified, of course, but you get the idea.

My manager actively suggested that I apply after my last day, which of course I'll be doing...

Exactly. UI benefits are not retroactive and there is a week's waiting period. The sooner you apply, the sooner you get that first check.