Losing Your Job
Below are questions/answers about losing your job.
Can my employer terminate me without a good reason?
Yes, unless you meet one of the exceptions listed below. The law presumes that private sector employees are employed "at-will." At will means that both the employer and the employee can end the employment relationship at any time without notice or reason. This means the employer has the right to terminate your employment at any time, for any reason, or for no reasoneven if youve been doing a good job.
What are the exceptions to the employment-at-will doctrine?
You are not an at-will employee if you have a contract, such as a union contract. When an employee is covered under an employment contract, you can only be terminated under the guidelines of the contract.
A handbook or personnel code may also be a contract. However, if there is a disclaimer in your handbook, it may not be a contract. State laws vary in evaluating whether a handbook is a contract.
An employee may not be terminated for an illegal reason such as because of their race, sex, age, religion, nationality, or disability, or because they have engaged in union activity.
Each state has different laws regulating the employment relationship. No two states have exactly the same laws. However, most states have statutes created by state legislatures prohibiting discriminatory discharge based on race, religion, sex, national origin, age, and disability. In addition, most states have specific statutes prohibiting certain kinds of discrimination not covered by federal law, for example, with respect to sexual preference or marital status.
What are my rights if I am terminated?
Verify the reason for your termination
If you were fired, attempt to obtain a written statement of the reason(s) for your termination. In some states, your employer is required to give you, upon request, a statement in writing of the reason for your termination. This statement is called a "service letter." States currently requiring such a letter are: California, Maine, Minnesota, Missouri, Montana, Nebraska, Nevada, Oklahoma, and Washington.
If you cannot obtain a statement in writing ask your supervisor or manger to tell you the reason. Then write down for yourself the stated reason and include the date, time, and place (and any witnesses) that the statement was given. Read it to the supervisor and make a note of the date he or she confirmed its content.
Keep a record of events
Keeping a record of events that occur in connection with your job loss will assist you in filling out unemployment compensation forms and in pursuing legal action against your former employer, if you decide to do so.
List the date, time and place of the event and witnesses. Try to construct a time line and chronology of important incidents. List important conversations - who said what to whom. This is so when you need to recall dates and events, you will have a fairly reliable source to turn to.
What should I do when I do leave my job?
Take a cautious approach to everything that you and your employer say and do about the termination. Anything your employer puts in writing about your termination and the documents you sign before leaving can have important implications for your future. If it's important enough to be in writing, it's important enough to examine with a fine-toothed comb. Ask questions and seek an outside opinion if you don't fully understand the answers before you agree to or sign anything.
You will probably see a lot of papers before your last exit. Some, like a summary of your retirement plan status, are fairly routine. However, if you are asked to sign any type of document, take your time. Read the document thoroughly to make sure you understand what you are signing.
Before you take your final leave be sure to obtain letters of reference, make certain you understand the reason for your termination, negotiate the best severance package possible, and make use of all outplacement services available.
At this stage your goals are twofold: avoid burning bridges and keep lines of communication open while you still have one foot in the door! Comments and threats will label you a troublemaker and damage your position.
What if my employer asks me to sign papers before I leave?
Think twice before signing anything.
Don't sign any "release" of legal rights or final "settlement' of claims until you either consult a lawyer or are certain you understand all its terms. Releases and settlements written by an employer ordinarily contain a lot of terms that protect your employer. They are not written to help or protect you. Remember, these are the people who just let you go. If they want you to sign something, you can be sure it's for their benefit, not yours.
What is a release? A "release" or "release of claims" is a legal term for a written statement signed by an employee in which the employee gives up all rights he or she may have to challenge his or her termination and/or to sue the company for its past illegal conduct. A release is like an official pardon given to the company for its unlawful behavior. When you sign a release, you give up valuable rights.
While releases and settlements are common when an employer and employee attempt to reach some kind of resolution of their disputes, you should be suspicious of a release or settlement agreement that your employer insists you must sign immediately, without reviewing it or having it reviewed. You will probably need some time to determine if you have a legal claim that you do not want to give up. Don't be afraid to ask for a week or two weeks to consider and review the release if necessary to contact a lawyer for counsel and advice.
Do I still have health insurance if I am terminated?
A federal law, known as COBRA (Consolidated Omnibus Budget and Reconciliation Act) has provisions that assist some employees in keeping their health insurance coverage even after they lose their jobs. COBRA's main provisions under current law are set out below.
Your employer must have 20 or more employees. If your employer employs fewer than 20 people, COBRA does not apply. However, many states have their own laws requiring employers to allow terminated employees to continue medical insurance coverage. Even if your employer is not large enough to come under COBRA coverage, your employer may still employ a sufficient number of persons to be subjected to state law requirements. Your state's department of insurance can provide this information.
For eighteen months after your employment ends or until you become eligible (whether you sign up or not) to participate under another plan, your employer must permit you to continue to participate in its group health insurance plan with the same coverage you had before termination.
Notification
Coverage is not automatic. You must elect coverage by notifying your employer that you want to continue, or "elect," to remain in the plan. The law requires your employer to inform you within 30 days of the right to elect this coverage. You then have 30 days after receiving the employer's notice to send something in writing to your employer stating that you want to continue coverage.
To avoid a lapse in coverage, you should not wait for the notice from your employer. Elect to continue as soon as you can. If you don't, your coverage may cease and the insurance company can refuse to pay your bills. Your only recourse will be to sue your employer for damages for not telling you about your right to elect this coverage.
Premium coverage
When you elect to continue under your employer's plan, you, not your employer, pay the premiums, which can be over $500.00 per month for family coverage. In fact, your employer can require you to pay up to 102% of the premium. The 2% is for administration costs. You must send the premium to your employer, not the insurance company, every month or your coverage will lapse.
When you send a written notice to your employer that you want to continue coverage, include a check for the first month's premium, the amount of which can be obtained from personnel or your insurance company. Once your check has been cashed, your coverage is verified. If the company is taking the position that you are not entitled to coverage, the company must return the check to you . If you cannot get anyone to tell you what the premium should be, state the fact in the letter and specifically request this information. Take all the steps you can to get this coverage and document your efforts. It is even a good idea to send your election requests and check by certified mail so you will have proof that is was received.
Gross misconduct
If you were fired for "gross misconduct," you will not be eligible under COBRA. However, there is nothing to prevent you from negotiating for COBRA rights and notifying your employer in writing that you want to elect COBRA continuation. Since it won't cost your employer anything, you may win this one. Although the risk of being denied continued insurance because of gross misconduct is very slight, you should be aware of this provision.
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