Owed Severance Pay

[orchiday]

What is the name of your state? California

Hi I am new to this forum.
In Decembe 2006, the non-profit organization that I worked for closed down because of lack of funding. In the prior months leading up to the close down, there were talks that all employees that stayed on to help with the close-out efforts would be given a severance and the severance amount was worked into the budget and approved by the Board of Directors.

Upon close out, the budget fell short because of extraneous invoices and debt and the severance was the first to be withdrawn. Nothing was written down on paper except for the approval of the budget by the Board and Executive Director.

My question to those that know is this. Are the employees that stayed on have a right to compensation by the board? Can the approval of budget by the Board and ED be a promissory note to pay? Are there any legal obligation by the board to pay us, the employees? What are some of the resources I can go to to find further information.


Any suggestion or help would be greatly appreciated

Extremely Frustrated,
OrchidayWhat is the name of your state?

 

[cbg]

Surprisingly enough, CA is not one of the very few states in which an employee is legally entitled to severance by law.

In the absence of a bona fide contract guaranteeing severance, it is up to the employer whether to offer it, under what circumstances and how much. Nothing in the law prohibits them from withdrawing an initial offer of severance if they are no longer financially able to provide it.

 

[Beth3]

In the prior months leading up to the close down, there were talks that all employees that stayed on to help with the close-out efforts would be given a severance and the severance amount was worked into the budget and approved by the Board of Directors. You can try to sue the Agency for the severance - perhaps claim detrimental reliance, i.e. if not for the promise of severance, you would have pursued other job opportunities and not have stayed as long as you did. Even if you should prevail, the problem remains the same - they have no funding, no money with which to pay any judgment in your favor, and the Agency no longer even exists.

 

[orchiday]

But before the approval of the budget the Board and ED new the financial situation of the organization. Why would they approve the budget for the severance? We stayed on because we wanted a smooth close out for the organization and the families we worked will. We forego other opprortunies to stay on at a reduced rate at that. Is that not worth something. I am just extremely frustrated thats all... Sorry...

Surprisingly enough, CA is not one of the very few states in which an employee is legally entitled to severance by law.

In the absence of a bona fide contract guaranteeing severance, it is up to the employer whether to offer it, under what circumstances and how much. Nothing in the law prohibits them from withdrawing an initial offer of severance if they are no longer financially able to provide it.

 

[orchiday]

Can the board members be fiscally responsible for the money owed, if determine by a court? They were more that just a advisory board but also the Fiduciary Sponsor also.

In the prior months leading up to the close down, there were talks that all employees that stayed on to help with the close-out efforts would be given a severance and the severance amount was worked into the budget and approved by the Board of Directors. You can try to sue the Agency for the severance - perhaps claim detrimental reliance, i.e. if not for the promise of severance, you would have pursued other job opportunities and not have stayed as long as you did. Even if you should prevail, the problem remains the same - they have no funding, no money with which to pay any judgment in your favor, and the Agency no longer even exists.

 

[mlane58]

As Beth3 stated "You can try to sue the Agency for the severance" but if there isn't any monies to pay severance you can't get blood from a rock. Is it really worth the time and effot?