Worker's Comp - severence

Advice please!
Employee had worker's comp mediation the other day. The insurance companies and he settled on a figure that was much less than he (and we)anticipated. He told HR that he would have resigned if the amount had been double (interestingly, the insurance companies settled for much less than they told us they would settle for before the meeting - we told them $50k and resignation - they agreed that would be the goal- then after mediation it turned out they only gave $24k and no resignation.)

We have made a job for this employee and the job we have made is about to run dry - we know the employee would like to retire (albeit with lots of money). Do you think it would be inappropriate to offer him our standard severence policy to encourage him to retire, or do we risk a retaliation claim? Also, I guess this is a good lesson in failure to attend worker's comp mediation - although the insurer's agreed with our assessment and agreed they would pursue resignation (it is to their benefit as well), they didn't.
Any advice about any facet of this is welcome!
Thanks-
Catherine

Comments

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  • What a web we weave......

    You'll have to know your state law on retaliation. In this state there is no such animal as WC retaliation and the gentleman could be terminated, period. I can't imagine those in the mediation selling you out like that or not having a company rep there.

    And you'd be facing a potential Age Discrimination in Employment charge if you attempted to coerce retirement by dangling a package now.

    If I had your problem, I would terminate, but, based on my state laws.
  • [font size="1" color="#FF0000"]LAST EDITED ON 04-18-05 AT 02:20PM (CST)[/font][br][br]CATHERNICETNC: I must assume you do not a physician's document showing that the ee is medically dis-qualified, thus giving you and he legal opinion of his disability. Additionally, in your post it says that you have created a job just for him and it will soon run out.

    To me you and he may have both shot yourselves in the feet. If he was not medically disqualified by the physician, why did he not return to his old position or an equivalent position. By not finding him medically disqualified, you must then terminate for cause (POOR PERFORMANCE) or as Don has indicated a potential AGE discrimination case is lurking out there in the hands of his present attorney, just waiting to see what your company will do. Your company, by putting him back to work in a dead ending job, the company has already demonstrated that they believe him to be disabled to do his long-term job. He on the other hand has failed to recognize in his closing days in the "working world" that the long term protection of SSI for a person with documented disability is very important and valuable to his person and his family. Much more valuable than any 401K retirement plan. Of course, the company settlement is gravy on top of the "smashed Potatoe" & bread , good eaten and the money is nice, also.

    Given the circumatance, as I read from above. I would not entertain a thought of termination. I believe, I would wait the person out, and see what he is interested in doing after his present position is finished. Do not create another job or position for an individual! Offer him a position that is presently authorized into which he can be assigned with or without accomodation. Do not be concerned for physical issues and circumstance, then transfer him into the position. Let him be the one to decide that the position to which he is being assigned for the benefit of the company is not aligned with any number of personal situation that would make a person realize the access to SSI after being out of the workforce for 6 month is much more advantagious to the individual and his family, than the janitor position, or the security night shift position, or the fuel pump operator, or the inter office mail man, or on and on and on! Do not force him out except as a lay off, because you do not have a position for him.

    Let him make the call or force him to do any job to which he is mentally and physically qualified to handle.

    I will be working until after the age of 70 and probably will stay on board until I am not competent to handle any position. There is no law that says you must retire me!!!

    PORK
  • Live and learn -

    Thank you both for your advice.

    I think waiting him out is the thing to do as well. (we do have retaliation laws here)

    Although, since he has mentioned retiring to several folks it might not hurt to delicately ask him if he is interested in a retirement package.

    Thanks again.
  • Just don't count on his attorney being 'delicate' with you when you are faced with an ADEA charge.
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