Current:Home > ScamsWhat should I consider when offered a buyout from my job? Ask HR -MoneyBase
What should I consider when offered a buyout from my job? Ask HR
View
Date:2025-04-13 06:32:26
Johnny C. Taylor Jr. tackles your human resources questions as part of a series for USA TODAY. Taylor is president and CEO of the Society for Human Resource Management, the world's largest HR professional society and author of "Reset: A Leader’s Guide to Work in an Age of Upheaval.”
Have a question? Submit it here.
Question: After struggling financially for two years, my company recently announced a merger. There are duplicate operations between the two companies, and they told us this may mean staffing cuts at some point. They offered buyouts to employees in certain departments. Does this signal that our department is targeted for layoffs? What should I consider in taking a cash buyout? – Sasha
Answer: It's hard to say whether your department would be affected without knowing the specifics of your company's merger. However, if it is, there are several things to consider before you take a cash buyout, often referred to as severance pay. Your employer appears to be at the initial stages of this merger, and a lot of work goes on behind the scenes to ensure there is as insignificant an impact on the workforce and operations as possible. Severance pay is a benefit many employers offer when involuntarily terminating an employee to assist with their transition out of the organization. Pay amounts can vary, with most employers having a severance plan paying a fixed benefit amount.
An example may be one or two weeks' pay based on each year of an employee's service. Information on this pay would be included in a severance agreement and release of claims. This agreement and release outline the terms and conditions associated with this payment. You will have time to review and consider this information before signing the agreement.
Before signing, there are some specific things to consider:
◾ Review the agreement with an attorney to ensure you keep up with rights you have yet to consider.
◾ Determine what is happening to your benefits. Some employers may offer to pay for all or a portion of your benefits after employment ends.
◾ Check for noncompete and nonsolicitation clauses, which may limit future job opportunities.
◾ Unemployment benefits: Depending on the state you work in, payment through a severance agreement may impact your unemployment eligibility or reduce the amount you may receive.
In addition, discuss the possibility of company-provided outplacement assistance (including assistance with resume preparation, interviewing skills coaching, etc. This is a huge benefit that a departing employee should request to help in their transition.
Communication during this time of change is especially critical. Don't hesitate to bring any questions to your supervisor or your human resources representative for help. Amass as much information and perspective as possible so you can make the best decision for your career in the short and long run.
Will AI take over the world?How to stay relevant if it begins replacing jobs. Ask HR
Mean boss?Here's how to deal with a difficult or toxic manager: Ask HR
If an owner of a company is going on vacation and closing the office, can he force employees to use their own PTO time? – Jess
While it may not be a popular decision, in most cases, your employer can force you to use your paid time off time if the office is closed, even if it’s because the owner is going on vacation.
Federal or state governments do not require employers to provide PTO to employees or directly regulate PTO policy. It is primarily up to employers to determine how and when employees use PTO unless it overlaps with other agreements or regulations.
For instance, an employer may have a policy or contract bargaining agreement (for unionized employers) to address PTO policy.
Another exception may come into play when employers tie sick leave and PTO policies together. Some state-level regulations mandate paid sick leave. Most state sick leave laws allow employees to use sick leave at their discretion rather than being forced to use it. Some sick leave regulations allow employers to use their existing PTO policy to satisfy the sick leave requirements. If your employer has used their PTO policy to fulfill state-mandated sick leave requirements, they may be unable to force you to take PTO. These stipulations are essentially designed to protect workers’ sick leave. There are mandatory paid sick leave laws for workers in Arizona, California, Colorado, Connecticut, Maryland, Massachusetts, Michigan, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington, or Washington D.C.
If you don’t have a separate sick leave policy and you work in one of the states mentioned, it may be worth reaching out to your Human Resources department if you are concerned about being forced to use PTO and if it might impact your ability to use PTO for sick leave purposes in the future.
veryGood! (68939)
Related
- Chuck Scarborough signs off: Hoda Kotb, Al Roker tribute legendary New York anchor
- 'No real warning': As Maui fire death toll rises to 55, questions surface over alerts. Live updates
- Who are the U.S. citizens set to be freed from Iran?
- San Francisco 49ers almost signed Philip Rivers after QB misfortune in NFC championship
- Rolling Loud 2024: Lineup, how to stream the world's largest hip hop music festival
- Democratic Senator Joe Manchin says he’s been thinking seriously about becoming an independent
- Who Is Lil Tay? Everything to Know About the Teen Rapper at Center of Death Hoax
- No Gatekeeping: Here’s the Trick I’ve Used Since 2016 To Eliminate Ingrown Hairs and Razor Bumps
- Apple iOS 18.2: What to know about top features, including Genmoji, AI updates
- Miami-area village plans peacock vasectomies to try to curb their population
Ranking
- A White House order claims to end 'censorship.' What does that mean?
- Theft charges for 5 ex-leaders of Pennsylvania prison guard union over credit card use
- Viola Davis Has an Entirely Charming Love Story That You Should Know
- San Francisco 49ers almost signed Philip Rivers after QB misfortune in NFC championship
- Global Warming Set the Stage for Los Angeles Fires
- Stock market today: Asian stocks decline after US inflation edges higher
- James Williams: The Crypto Visionary's Journey to Pioneering Digital Currency Investment
- $8.5 billion acquisition puts fashion giants Versace, Coach and Michael Kors under one company
Recommendation
2025 'Doomsday Clock': This is how close we are to self
This Reversible Amazon Vest Will Be the Staple of Your Fall Wardrobe
Trump adviser Boris Epshteyn arrested in 2021 after groping complaints at club, police records show
D.C. United terminates Taxi Fountas' contract for using discriminatory language
'Vanderpump Rules' star DJ James Kennedy arrested on domestic violence charges
Coach parent Tapestry and Versace owner Capri fashion a $8.5 billion merger
To the moon and back: Astronauts get 1st look at Artemis II craft ahead of lunar mission
UPS says drivers to make $170,000 in pay and benefits following union deal