So, today, after over 17 years at my company, my position has apparently been eliminated. And it doesn't have anything to do with all the debauchery that I have posted on here. They are apparently building a new facility in LA that is very over budget and every department is being asked to cut. Well....I win. The cut anyway. Even though my boss told me I was bringing in the most money for the company, etc. It all makes no sense whatsoever.
Does anyone here know how severance packages work? I have never been fired from a job in my entire life, and I need some advice. Thanks in advance.
Buddy, I am so sorry to hear this awful news. I was laid off once after 16 years (I was in the hotel business) after 9/11/01 (I got laid off 2 months later in the 2nd round of layoffs). Different states have different rules. In your case, I do hope you get severance from your employer. It's also good that you left with a good record, so you were not "fired" in that sense, you were "laid off" through no fault of your own. (The result is the same--you lost your job--but there is a
distinction in terms , especially for the state if you apply for unemployment.)
Important: "Severance" (from an employer), and "Unemployment" compensation (from your state) are two separate things.
In my state (MA), it is up to the employer whether or not they want to give severance, and there's no cookie cutter formula; amounts of severance may also be determined by how high up your position was in the company. In my case, I was an admin. assistant at the time, and I got my usual pay (but without any benefits) for one year. In addition, AT THAT TIME (in MA), I could also collect unemployment (which was less money) from the state for up to a year. (Since that time, the state will not let people collect unemployment if they are also collecting severance; I was at the tail end of the double dipping so to speak. It was all legal at the time as my employer set up everything for me. But, believe me, I would have far preferred to stay working at my job. It was a very, very rough 9 months for me before I could finally find a job, at that time.)
So, in your present case, I assume what you'd do (aside of the company's severance, which you'll look into--I assume your employer probably gave you information on the severance package when they informed you your job was eliminated--that is, IF they offer severance at all), is go to whatever N.Y. City agency handles unemployment. Sign up for that, as you are entitled to it to help you pay your monthly living expenses, while you are actively looking for your next job. Keep in mind it will be less (usually around 40% less) than what you made in your salary. Also, remember that your benefits (medical insurance) you'll have to pay for yourself. Also important to note: unemployment payments are taxable. Yes, facepalm. . . this is nothing to worry about initially, but next year when you file your taxes, you have to report any unemployment payments as "income". Lastly, as for medical insurance--
If your employer offers you COBRA (by law, I believe that's for a year--if you're currently on their company's medical plan), be aware that you will now have to pay the FULL premium each month on your own. This is
very expensive--most employers, while you work for them, pay a portion of medical insurance, and the employer pays a portion. Once that benefit is pulled (as in the case of a layoff), you'd be astonished to see how high the premium is. In many cases, you'd be better off dumping your plan and researching other insurance options which are more reasonable. It's key to find out how long you are still on their plan (paying whatever amount you
normally pay) --i.e., through the end of the month, or was it terminated by the end of this week. (Note: Some people do stay on COBRA only if their company plan was an excellent one--and they had specific doctors they were allowed to see, coverage for expensive medications, etc.
Again, that would only work for those who had the money to actually pay that full premium on their own--while unemployed.)
I know the above is long, but I'm really trying to extend my knowledge of the situation in the hopes that some of this might be helpful. I wish the very best for you.