Today and subsequent lays offs…. You will be offered a job, more than likely with reduced pay. IF you opt to not take offered job, Optum will not pay you your severance.
Is this even ethical?
Most households cannot survive if someone’s salary is much reduced. Most have to find a new job with comparable pay.
Withholding one’s severance they are entitled to when being layed off seems way wrong.
If they hadn’t layed so many off prior, they wouldn’t be losing their coin on all these severance packages. Just keeps getting worse and worse!
7 replies (most recent on top)
Fact checking and expectation setting: You are not entitled to a cent of severance in the US. If you work at our other offices you may have different rights. Companies can revise those severance payouts at any time unless your contract explicitly states you will get $X amount in termination.
Depending on the state, unemployment benefits may amount to only a fraction of the severance. In Florida, for example, unemployment benefits amount to $3300 total, and you have to submit a lot of paperwork every week to get your lousy $275 until it runs out.
In the ole US of A severance is not something you really have much right to unfortunately.
In most states offering a job with less pay is a constructive layoff. You are still eligible for unemployment. Simply tell them this doesn’t change the fact they were laid off. You won’t get severance but you still get unemployment and can focus 100% of your time on finding a job that you are qualified for versus a demotion.
@OP, were you offered a job with the same title or in the same department? Did they provide that information to you on the day of the layoff?
While it may not be ethical, I understand the policy of not paying severance if you refuse a job. That’s treated as voluntarily resigning, even if the new role comes with a pay cut. That’s how other businesses also handle these situations.
I was offered another role last year as part of a RIF at the same grade level, but with a ~10% pay cut. I agree with the other person that this doesn’t sound like a new policy.
I wasn't offered a job.
You always forfeited severance if you were offered redeployment. How is this new? Also not everyone is offered a role.