No matter what the circumstances, leaving a job can be stressful. If you are laid off or fired, the prospect of seeking new employment without having a paying job can be frightening. When you retire, not knowing what your financial future holds may cause anxiety. And even if you’re leaving to take another job, there is usually a period of a few months before you can take advantage of that job’s benefits.

A severance package can help see you through such uncertain times. But not every employee is entitled to one. Here’s what you need to know about severance packages and how to make the most of them.

Am I Guaranteed a Severance Package?

There is no law mandating that companies have to provide severance packages to their employees. The only thing that is provided for by law is the opportunity to temporarily continue your health insurance at your own cost. But many companies do offer severance packages under certain circumstances.

The details of your company’s severance policy may be found in your employee manual, or in your employment contract. It is important to review these things before taking a job. If your severance package is detailed in your contract, you can negotiate for what you want before signing. The company doesn’t have to change anything, but if they are really interested in hiring you, they may be willing to make some concessions.

In most cases, companies only provide severance packages for employees who are laid off or retire. But firms may choose to offer severance benefits to employees who resign with notice, or in some cases even those who are fired. These situations are often considered on a case-by-case basis, and the employee may hire a lawyer to help negotiate benefits.

What’s Included in a Severance Package?

Severance packages vary significantly. But in most situations, the benefits provided are based on the benefits one received as an employee. These may include the following:

* A payment based on the length of service. This payment is often equal to 1 to 2 weeks of pay for each year of service for hourly and salaried employees, up to a maximum of 26 weeks. For executives, it may be 6 to 12 months’ pay.

* Payment for accrued vacation time. Some firms also offer payment for unused sick leave.

* Insurance benefits. These may include medical, dental and life insurance.

* Retirement benefits and stock options. These may be continued just as they were while the individual was still an employee.

* Help finding a new job. This is typically provided for employees who have been laid off.

Severance packages are a way of saying “thanks” for an employee’s service. But they can benefit the company as well. As a condition of accepting a severance package, employees must usually agree not to pursue legal action against the former employer or attempt to collect unemployment benefits. They may also have to agree not to go to work for a competing company.

A good severance package can help ease the transition from your old job. If you feel that you’re not getting a fair shake, and employment attorney may be able to help you get the pay and benefits you deserve.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

Filing for unemployment can leave you feeling like you’ve been raked over the coals. But when you are approved for benefits, it is all worthwhile. It’s not always over when you get approved, though. Your former employer has the right to contest your claim, and if he exercises that right, you’ll have to attend a hearing to prove that you are eligible to receive benefits.

The very thought of an unemployment hearing is intimidating. What chance does a former employee have against a company that has been through all of this before? Actually, if he was honest when filing for unemployment and was not terminated for cause, there’s a good chance that he will win.

The key to winning an unemployment hearing is being prepared. Here are five things you can do to make sure you’re ready for such an important event.

1. Consider working with a lawyer. If you can’t afford one, your state’s Legal Aid office may be able to set you up with one. Having an attorney who is knowledgeable about employment law will give you a better chance of keeping your benefits.

2. Write to the company and request a copy of your personnel records. Send your request by certified mail, with a return receipt requested. If the company sends the documentation, it may be used in your defense. If they refuse to send it or do not do so in a timely manner, that’s a strike against them in the eyes of the judge.

3. Write down a statement of the facts of your case as you understand them. The judge may wish to see this statement. Even if he doesn’t, bringing it to court can help you remember key arguments and prevent misstatements.

4. Ask witnesses who can legitimately back up your story to testify. Getting former co-workers to testify can be difficult, because they may fear losing their own jobs. But if you can convince them to do so, it could add credibility to your case.

5. Prepare questions to ask your former employer, or help your attorney prepare them. Asking the right questions will put your ex-boss on the defensive, forcing him to admit to errors or wrongdoing.

Unemployment hearings may be held in person or over the phone. Either way, it’s important to be punctual and act in a professional manner. If the hearing is in person, be sure to dress appropriately.

Some individuals assume that a hearing will be the end of their unemployment benefits. But that’s not always the case. Even if you fear that you will lose, it’s important to attend the hearing and present your case. If you don’t, you’ll not only lose your benefits now, you could be barred from receiving them for several years.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

For those in the workforce, Unemployment Insurance provides a safety net in case of job loss. But not everyone who loses a job is eligible for unemployment benefit. Certain criteria must be met. These criteria differ from state to state, but many similarities exist.

Initial Eligibility

Most of those who qualify for unemployment benefits have lost their jobs. In order to qualify, they must have been terminated through no fault of their own. Being laid off is one example of involuntary termination, but it’s not the only one. Employees who were fired without reasonable cause may also be eligible.

In some cases, those who voluntarily quit a job may be eligible for unemployment benefits. The worker must have left with “good cause,” and the definition of good cause varies from state to state. In general, employees must have quit due to some sort of unfavorable working condition, such as significantly reduced hours or pay, an unsafe work environment or a change in duties that is at odds with moral or religious beliefs.

Some states allow those who have had their working hours reduced to stay at their jobs and collect partial unemployment payments. In such cases, the employer usually initiates the unemployment claim. Your state unemployment office can provide details about eligibility.

In addition to these requirements, claimants must meet their states’ requirements for time worked and/or wages earned during a specified period of time prior to unemployment. Money earned during this “base period” is also used to determine the amount of benefits the claimant is entitled to.

Maintaining Your Eligibility

When you first file for unemployment benefits, the state will determine whether or not you are eligible. Even if they find that you are eligible, your former employer can contest the claim. If this happens, you are entitled to a hearing to state your case. If you want to continue to receive unemployment benefit, you must attend the hearing and prove that you are in fact eligible.

Those who are receiving unemployment benefits must be ready, willing and able to work. States usually require those collecting unemployment benefits to register with the State Employment Service. They must actively look for jobs and document their job search and they must accept reasonable offers of employment. In some cases, however, those receiving unemployment benefits may attend school full time instead of looking for a job.

In order to continue receiving benefits, you must file claims every week or two weeks, depending on your state’s requirements. This may usually be done online or by phone. Claimants must report earnings, job offers and refusals. Claimants must also report to the unemployment office for interviews as requested.

Filing for unemployment benefits can be intimidating. But it’s important to do so as soon as possible after separation from employment. Benefits may be delayed for up to two weeks even if you are eligible, so the sooner you file, the better.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

With the ever-changing economic climate and the tendency for manufacturing jobs to go overseas, layoffs have become all too common. One day you might be going in to work as usual, and the next you could be sent packing.

Unexpected job loss can really take the wind out of our sails. Not knowing how we will provide for ourselves and our families is a horrible feeling. It can emotionally and mentally paralyze us, leaving us ill equipped to get back on our feet.

If you lose your job, don’t panic. If you keep a clear head, you can keep yourself going until you find another job. Here are ten things to remember.

1. When you find out that you are going to be out of work, talk to your employer about severance benefits. You may or may not be entitled to a severance package, depending on your company’s policies and your employment contract. But in the case of a layoff, an employer could decide to provide a severance package anyway. If not, you may be able to negotiate and get one.

2. Apply for unemployment. If you were laid off, you should be eligible as long as you’ve worked and earned enough in the past year or so. You may also be eligible for unemployment under some other circumstances, except if you were fired for misconduct. As long as you are truthful about what happened, it can’t hurt to apply.

3. Consider your health insurance options. You should be able to continue the health coverage provided by your former employer in most situations, but may have to pay the entire premium yourself. If your spouse has group health insurance, signing up with that plan might be a cheaper option.

4. Roll over your 401K. You will have a specified amount of time in which to do this before your employer writes you a check for the balance. After that, you have sixty days to deposit it directly into an IRA before you incur taxes and penalties. Even if you may need to use some of the money, rolling it over first will prevent you from having to pay taxes and penalties on the amount you don’t use.

5. Polish your resume and brush up on your interview skills. The job market is more competitive than ever, but if you present yourself well and let potential employers know what you have to offer with confidence, you can increase your chances of finding a good position.

6. Take advantage of any job search help that’s available. Your former employer may provide assistance in finding a new job. If not, your local job service offers lots of free services.

7. Find alternative ways to bring in some cash to help tide you over. Have a garage sale, sell stuff on eBay, or clean houses or do yard work part time. You can make some money without forfeiting your unemployment benefits.

8. Re-evaluate your budget. Even if you receive unemployment, you’ll be living off of much less money than usual. Eliminate unnecessary bills and expenses, and determine how long you can make it on any income that you have.

9. Utilize your savings with caution. Ideally, you should have some savings put away for situations such as this. If not, you may need to withdraw money from annuities or retirement accounts or sell your stocks. Each of these options can cost you money in one way or another, so use them only if necessary.

10. Talk to your creditors if you’re having trouble keeping up with necessary bills. Going to them before you get behind will make it easier to negotiate lower payments or reduced interest.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com

In a perfect world, working to make a living would be trouble-free. We wouldn’t have to worry about discrimination in hiring, fair compensation or unfair termination. But the working world is far from perfect. And that’s why there are employee rights attorneys.

Lawyers who specialize in employee rights can help us with a variety of issues. They know the laws that govern what employers can and cannot do, and they can help employees negotiate or file suit if necessary. Here are some of the things an employee rights attorney can help you with.

* Discrimination – Employers are not allowed to discriminate against employees or job applicants on the basis of age, gender, race, national origin or religion. They also may not discriminate against the disabled if it is possible to make reasonable accommodations for them in the workplace.

* Privacy – Employees have certain privacy rights that must be observed in most states. Generally, possessions and storage lockers may not be searched by the employer, and he may not listen in on phone conversations and voicemail messages. Email and Internet usage while at work, however, may be monitored.

* Harassment – Employers must not harass employees, and they must not allow co-workers to harass one another.

* Safety – Every employer must provide a safe work environment. Safety hazards must be avoided as much as practicable. Dangerous substances must be labeled, and Material Safety Data Sheets must be available.

* Fair wages and breaks – Employees must receive fair wages for work performed. Laws regarding overtime pay must be observed. Employers are also required to provide breaks as set forth by law.

* Whistleblower rights – Employees should not be victims of retaliation from the company if they make complaints.

* Leaves of absence – Under the Family and Medical Leave Act, employers must allow most employees to take a leave of absence for up to twelve weeks for medical reasons, or to care for a sick family member. The employer is not required to provide pay during this time, but must hold the employee’s position or an equivalent one until he returns.

* Termination – Employers must not wrongfully terminate employees. They may also be required to provide certain severance benefits according to contracts or company policy.

* Severance packages – An employee rights attorney can also help workers negotiate severance packages. This is important if the employee feels that he is not getting a fair shake when his employment ends. Even if terms are spelled out in a contract or handbook, an attorney may be able to help you get more benefits.

If you are experiencing trouble in the workplace, an employee rights attorney can help protect your rights. And if your employer takes adverse action against you because you obtained representation or filed suit, your attorney can help you retain your job or receive compensation.

Brought To You By:
Woody Alpern
CPA/PFS
www.yourwealth.com
woody@yourwealth.com