Question- if an employee got laid off with an extended termination date in September due to WARN act, can DCEH stop paying the 2-month salary if the employee starts employment somewhere else before September?
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No they can't. Also depending on your state laws you may be able to collect unemployment compensation during the 60 days.
I highly doubt it. Just don't tell them you got a new job. You are allowed to have a second job as an employee of DCEH.