Expecting a pink slip? What you need to know

Eve Tahmincioglu • Profile • E-mail

If I am laid off, will I get paid for accrued vacation time? What about the expenses I put on my personal credit card for a company business trip? Is my employer required by law to give me notice of a mass layoff?

Lately, I’ve been getting lots of e-mails from individuals who just lost their jobs, or who are about to be let go, wondering what they will and won’t get after the exit interview. And JustAnswer.com, a Web site that provides expert advice on everything from legal to auto repair questions, has seen a spike since October in legal questions from readers about layoffs, unemployment and severance, says Aimee Macaitis, a spokeswoman for the firm.

With jobless claims at a 14-year high and expected to rise, this is a good time to figure out what you’re entitled to if you’re laid off — or if you sense a pink slip may be in your future.

Here’s a layoff primer to get you started.

1. Unemployment benefits
Most full-time employees who lose their jobs through no fault of their own are eligible for unemployment benefits, depending on how long they worked and how much they earned. (Contractors and the self-employed generally are not eligible for benefits.)

Eligibility requirements vary by state, but in most cases, you must work four out of the last five completed quarters before you file for benefits. The money you receive is based on the money you made over the previous 52 weeks.

In most states, you can be paid benefits for up to 26 weeks.

Last month, President George W. Bush signed an unemployment benefits extension that gives workers an additional seven weeks of jobless payments. In states with the highest unemployment rates, those who are out of work can get an additional 20 weeks of payments.

If you are laid off, you need to quickly file a claim with your state unemployment insurance agency. In many states, you can do that over the phone or on the Internet. (Find your state's agency.)

After filing the claim, expect to wait three weeks or more before receiving your first check.

2. Unused sick days, personal days and vacation time
Few laws require employees to be paid sick days, personal days or vacation time. Lewis Maltby, president of the National Workrights Institute, says it’s all a matter of contractual obligations on the part of your employer.

If a contract you signed when you were hired says you’re entitled to all of your unused sick time when you leave a company, then you should expect to be reimbursed.

Employee handbooks may also spell out this type of policy, he says, and courts often view a handbook as a contract.

Another factor that can work in your favor is if you can prove that your employer regularly pays out sick time and vacation time when other workers leave. “Then you have an argument that it’s a company policy. They can’t single you out,” he says. “But they can change the policy and decide that no one from this day on will be paid for unused time.”

California is one state that requires employers to immediately pay workers accrued vacation time at the time of termination. Check with your local labor department to find out what the laws are in your state if your employer refuses to pay.

3. Severance pay
Again, no federal or state laws require employers to pay out severance, but if that is the practice at your employer, this is how it might work:

Employers typically spell out their severance policy, including details on the amount and timing, during a reduction in force, says Sheri Stolp, owner of human resource consulting firm The Stolp Group.

“A typical severance policy would include paying the employee one week for every year of employment,” she explains. “Some companies choose a more generous route and provide two or three weeks per year.”

Even if you receive a severance package, you should still file for unemployment. However, you usually have to exhaust your severance benefits before you start getting a check from the government.

MORE FROM CAREERS

Careers Section Front

The states where women earn the most Think twice before giving the boss a gift Overqualified, but happy to have a holiday job Your Career: Job fears fuel gossip at work Survey: Surgeons top list of stressful jobs Your Career: Can your name affect your career? Generation X is increasingly ‘whatever’ at work Your Career: More disabilities to be protected Workers may jump ship as economy improves Teacher shortage has given way to teacher glut Careers Section Front   Add Careers headlines to your news reader: