Texas / Wages in Lieu of Notice

Mrs_ HR Texas · April 2012

Good morning all!

So we've let several people go this year and all have received a two weeks severance pay. Upon research I've actually discovered that we call severance pay is actually wages in lieu of notice. With that said:

We let go an employee this past week whose supervisor did not want to pay two weeks wages in lieu of notice.

Are we required to offer the same two weeks to all employees we terminate?

Could we only offer to salaried and administrative personnel?

If we were to create a policy on this would it then be considered a welfare plan and be governed under ERISA?

HELP???

plhepner · May 2012

It is not up to the supervisor who is paid wages in lieu of notice. I worked in the computer room of a hospital before and turned in my two weeks notice and was let go that day and paid out my two weeks. The rationale was nothing against me but one begins to have "short timers syndrome" and, in that position, it possibly compromised network security if I wasn't on top of my game because I didn't care since I was going to another position. So, yes, the employee either works out the two weeks or you pay them 80 hours pay and let them go that day. On the seperation notice, it will have a box for "wages paid in lieu of notice".

cnghr · May 2012

In most of our departments, if an employee gives two weeks' notice, they are allowed to work out their two weeks, but in certain departments and with certain positions, supervisors prefer to let the employee go immediately and pay them their two weeks right then, although we do not have a written policy regarding wages in lieu of notice.

Personally, I feel like it is only fair that if an employee gives you two weeks' notice and you choose to let them go immediately, you should pay them the wages that they would have earned in those two weeks had you allowed them to stay the full time, and that is what I tell our supervisors who want to let somebody go immediately, either because they are going to work for a competitor or because they feel they may compromise something due to "short timer's syndrome". All of our supervisors agree that, if the person has been an otherwise satisfactory employee, there's no reason not to pay them the wages in lieu of notice.

Texas / Wages in Lieu of Notice

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