Can someone explain the warn act
I understand why they do it but does it change severance at all
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Any pay received under WARN will be deducted from your severance.
Are you sure...? Because my medical insurance lapsed immediately but I was eligible for COBRA? Another CO.... not any of the aforementioned.
Great information thank you
As I read it:
Total Serverance * $$$
- Less pay received during warn period.
Which means to me, total severance minus the warn period.
P.S. Whether the 60 days will be included in the total severance package should be spelled out clearly in the documents they gave you outlining the severance package.
If they have meetings to go over details of the severance package (typically a day or two after the layoffs), you should definitely go and don't leave until all your questions are answered. Ours were actually very helpful.
I worked for another company and went through the same issue. Warn act did not effect my package. It is like getting 60 days paid vacation. You receive the same pay, insurance, and 401k match as if you went to work. You even accrue vacation days for the 60 days. I received the same package as others that were let go four months later. hope this helps. Sorry about the layoffs. I have friends going through the same thing.
Went through WARN at Chaparral. Here's essentially how it works. If the layoff qualifies for WARN (which it does, so it doesn't matter what makes it fall under WARN), they are required to give anyone laid off 60 days notice. From that point, they are required to pay salary and benefits for 60 days. Since they gave no prior notice, the 60 days starts from when you are told you are being laid off (i.e. today or tomorrow, depending). However, they are allowed to structure the severance so that it includes the 60 days of salary, as there is no requirement for severance pay. If Devon is doing it anything like Chaparral did, you will have to specify a termination date (they will tell you the deadline for doing this). Regardless of when you officially terminate (until that date you will officially be an employee, with no job duties), they are required to pay all benefits for 60 days, so you will be covered for medical (and dental if Devon provided it). Also, your salary will be 401(k) eligible, and they will be required to match it the same way they always did. I can't remember if the severance pay is 401(k) eligible, but my recollection is that it is not, as you won't get paid the severance until after your termination date.
Here's some other very important information, not part of WARN, but very important anyway. It has to do with Flexible Spending accounts. If you contribute to that, you already know it is "use it or lose it." As of January 1 you are eligible to use the entire amount you committed to contribute for the who year (you probably already knew that, too). Here's the kicker, that works in your favor. If you have what they call a negative balance (i.e. if you have used more flex than you have actually contributed up to this point), Devon can NOT, by federal law, ask you to repay it, or to continue contributing after your termination date.
So, if you planned to contribute 200 a month (total of 2400), and as of your termination date you only contributed 400 but charged 1900 in flex charges, the 1500 is free money! The law calls this the risk the plan takes to offset the use-it-or-lose-it provision. So, if you still have flex money left, go out an buy glasses or anything else that qualifies for flex, as long as you spend the money before your official termination date. You can check this out with HR, or with an employment lawyer, or do some internet research.
Hope this helps.
Supposedly, the folks that have been let go have their 60 days pay / benefits, released that day (per Warn Act) then after the term date 60 days later the severance kicks in.