Originally Posted by
downtube42
We have an announced reduction in force, and for reasons I don't need to explain here I'm at significant risk for being RIFfed
Generally there's a severance offer based on years of service. I have not heard anything this year, but in the past it's been as much as 1 month per year of service, which would be 15 for me. I'm guessing significantly less this time, but I don't know. You're given the option of a lump sum or continued paychecks with full benefits for the duration. The cost is signing a paper saying 1) I won't sue, 2) I won't go to work for a supplier, and 3) I won't go to work for a competitor. Refuse to sign the paper and I walk out with nothing. Terminated exempt employees are permanently ineligible for re-hire.
15 months pay would be a no-brainer, a virtual lottery win. But what if it's 3 months or 2 months or 1? The reduced employment options hurt - many of my professional contacts will be unable to help.
I know what I'm talking about
:
a) Check with your state unemployment insurance department, or an employment lawyer in your state, you may be able to take the lump-sum and collect UI benefits afterwards, and probably not if you are still payrolled. This can make a big difference to you financially. The rules are state by state.
b) The validaity of non-compete are determined state by state. Typically, they are enforceable if they are limited in time, scope and geography. Often the restrictions you mentioned will be limited to a two year post-termination. Talk to an employment lawyer, you may find the restriction is not as bad as you think, and if you are likely to relocate to a worker friendly state, maybe they are irrelevant.
c) People seem to assume that if they don't opt for the RIF the job just continues. Not necessarily so, I've seen lots of people pushed out in the next year or so and what they are offered later is a fraction of what the original RIF money was. Big mistake.
Talk to an experienced employment law attorney, find him or her through NELA's site
http://www.nela.org/NELA/