Compensation for Employee that has resigned

hrtx

I am new to this forum and need some guidance.  I am a department of one for a small non-profit organization (30 employees).  We have an exempt employee who has been with the organization since it started.  Five years later she is resigning due to personal issues.  As a show of good faith, the management team is wanting to continue paying her salary and continuing her benefits for 90 days after she resigns.  Are there any major issues with doing this.  She is moving out of state and just want to provide her something until she's back on her feet again.

 Thanks in advance for helping out with this.

TXHRGuy

Assuming the cash/revenue position of the organization can accomodate that while also doing a search (and subsequent selection and compensation) for a replacement, then there's nothing inherently wrong with it.  However, the Company should at least get a release and settlement agreement out of the deal.  That is typical: get release, obtain severance.

hrtx

Thanks. This is very helpful.  Would you happen to have a sample of a release that I could take a look at?

TXHRGuy

[quote user="hrtx"]Thanks. This is very helpful.  Would you happen to have a sample of a release that I could take a look at?[/quote]

Even the simple ones that I have seen are fairly complex.  One issue you may have to deal with is special provisions under ADEA.

I would hesitate to let one out into the wild for use in gosh knows what circuit and state.  You need a local document from a local lawyer source.  Given all the layoffs, you can probably find someone local who will let you photocopy theirs for a cup of coffee. :-)