FL Severance--NEED ANSWER ASAP!!

Paige

We are preparing a severance letter for an employee in FL. Rather than a flat dollar amount for severance, however, we are wanting to offer to keep him at full salary until he finds full time employment or for 60 days--whichever occurs first.

Just checking to make sure this is something we can do (I'm used to doing flat dollar amount severances). Is there anything, other than typical severance parameters, that I need to be aware of in this kind of situation?

Need answer quick!!

Thanks!

cebudragonlady

Is this Employee honest enough to tell you when they find another job within the 60 day period?
You don't want the employee finding another job right away and still collecting from you for the remainder of the 60 days.

Stick with a flat rate severance.

Chari

crawfod

Your idea implies that if this person found employment the day after termination that he/she would get nothing in terms of severance pay. Not knowing what your severance policy is, that would not seem fair to the employee. If that person had a job offer, he/she could ask the new employer if they could start in 60 days, then collect your money and enjoy the Florida beaches. That obviously would not be fair to you.

If you keep this person at full salary, I would suggest you make it VERY clear, in writing, how you will treat any other benefits: medical insurance, death benefits, vacation accruals, etc. I would think all you would want to provide would be the salary, although if this is a downsizing move, often other benefits are provided for a period of time.

Also, some states don't regard severance pay that is paid out over several weeks as being offset income for unemployment compensation purposes.

My feeling is it would be simpler to pay this person off with a flat amount or stick to your policy or whatever you have done consistently in the past. Changing precedents often can lead to legal troubles.