Current:Home > BackWhat should I consider when offered a buyout from my job? Ask HR-DB Wealth Institute B2 Expert Reviews
What should I consider when offered a buyout from my job? Ask HR
View Date:2025-01-11 07:28:15
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! (4497)
Related
- CRYPTIFII Introduce
- 104-year-old woman dies days after jumping from plane to break record for oldest skydiver
- Watch this sweet Golden Retriever comfort their tearful owner during her time of need
- Powerball jackpot at $1.73 billion after no big winner Monday. What to know about historic streak
- Katherine Schwarzenegger Gives Birth, Welcomes Baby No. 3 With Chris Pratt
- Are terrorists trying to enter the U.S. through the southern border? Here are the facts.
- Exxon Mobil buys Pioneer Natural in $59.5 billion deal with energy prices surging
- Republicans nominate Steve Scalise to be House speaker and will try to unite before a floor vote
- NFL coaches diversity report 2024: Gains at head coach, setbacks at offensive coordinator
- 2023 Fat Bear Week has crowned its winner – a queen that's thicker than a bowl of oatmeal
Ranking
- Vermont man is fit to stand trial over shooting of 3 Palestinian college students
- Ex-NFL Player Sergio Brown Arrested in Connection With His Mom's Death
- Carlee Russell, whose story captivated the nation, is due in court over the false reports
- Trick-or-treat: Snag yourself a pair of chocolate bar-themed Crocs just in time for Halloween
- Dave Coulier Says He's OK If This Is the End Amid Stage 3 Non-Hodgkin’s Lymphoma Battle
- Powerball jackpot at $1.73 billion after no big winner Monday. What to know about historic streak
- Missouri high school teacher suspended for having porn site page has resigned, superintendent says
- Amazon sellers say they made a good living — until Amazon figured it out
Recommendation
-
Could trad wives, influencers have sparked the red wave among female voters?
-
Voters in Florida Rep. Matt Gaetz's home district have divided opinions after McCarthy's House speaker ouster
-
Ex-NFL player Sergio Brown arrested in Southern California in connection to mother’s slaying
-
Kentucky leaders celebrate end of Army’s chemical weapons destruction program
-
Man Found Dead in Tanning Bed at Planet Fitness Gym After 3 Days
-
5 Things podcast: Israel intensifies assault on Gaza, Americans unaccounted for
-
Morgan State University plans to build a wall around campus after shooting during homecoming week
-
Wildlife Photographer of the Year winners show the beauty — and precarity — of nature