Job Eliminated

[MaBee]

What is the name of your state (only U.S. law)?
What is the name of your state (only U.S. law)? California
I have worked for a company for seven years. Two years ago my job description changed...with no training in the last two years. My job has now been eliminated. I was given two months notice and six months severance. My last day is next week and found out they are recruiting for my position with the same job title and same job description. Can a company do that?
Thank you
MaBee

 

[davew128]

Of course they can, why would you think they can't? File for unemployment.

 

[swalsh411]

They apparently don't want you around anymore.

 

[eerelations]

Your employer is not legally required to give you any notice or severance.

 

[LdiJ]

Of course they can, why would you think they can't? File for unemployment.

Can't do that until the severance is used up.

 

[cbg]

Whether or not someone can file for unemployment before the severance is used up is state specific.

 

[LdiJ]

Whether or not someone can file for unemployment before the severance is used up is state specific.

I did not know that. Thank you for that information.

 

[commentator]

I did not know that. Thank you for that information.

Definitely, ALWAYS file, immediately, the first week that you have not worked and made more than you could draw in a Sunday through Saturday week. Example, if your last day of work is Friday, file any day the following week. Whether you have severance or not. This will set up your claim based on your highest earnings and the state system will tell you exactly how to report the severance and what you should do about it. In some states, severance is considered wages. In some it is not. Instead of trying to figure this out for yourself, postponing your filing and possibly cheating yourself out of some paid weeks, go on and file the claim. They won't let you draw if you shouldn't be.

Unfortunately, it is perfectly legal to get rid of an employee through "job eliminated" and a lay off. Really, it's the most aboveboard and charitable way to do it. At least they didn't fish around and try to come up with ways to fire you for cause, which would've resulted in your having more problems with drawing unemployment while looking for another job.

 

[Zigner]

How severance affects UI is even more complicated than one might think. It really is figured on a case-by-case basis and has to do with policies of the company regarding severance, etc.

See http://www.edd.ca.gov/uibdg/Total_and_Partial_Unemployment_TPU_46035.htm for more info.

 

[Zigner]

Another section of the State site seems to be more direct about saying that severance pay does not affect UI benefits:

http://www.edd.ca.gov/unemployment/FAQ_-_Collecting_Benefits.htm#Howdoesseverancepayaffectmyeligibilitytoreceiveunemploymentinsurancebenefits