New York Employment Lawyer Blog

Citibank recently announced that it plans to cut 4,500 jobs over the next few quarters. At a financial services conference at Goldman Sachs & Co., Chief Executive Officer Vikram Pandit stated that the layoffs are part of the banks effort to reduce costs given the bank's decreased revenues and "unprecedented" market conditions. Citibank will be taking a $400 million pre-tax charge related to reductions, including severance pay in its 4th quarter statements.

CitiGroup is the third biggest U.S. bank by assets and employed about 267,000 people as of September 30th. The 4,500 work force reduction amounts to about 2% of CitiGroup's total employees. The layoffs are planned to take place over the next few quarters and will affect employees from its different businesses. Our attorneys have counseled many laid off employees in the financial and banking sector and helped them to obtain the best severance package possible.

Most of the cuts are expected to come from Citigroup's back office and investment banking operations. London based investment bankers were already laid off this past weeks and several hundred jobs in Europe, the Middle East, and the Africa region are also expected to be cut. Since Pandit took rein of Citigroup in 2007, he has cut down hundreds of billions of dollars in assets, strengthened its risk controls, and paid back the $45 million bailout money it received in 2008 to prevent its collapse. Pandit's cost cutting plan to lighten Citigroup's load has resulted in massive layoffs.

Citigroup is not the only bank engaging in massive layoffs. According to Bloomberg data, the banking and financial industry has cut over 200,000 jobs throughout the world just in 2011. For example, Bank of America announced its plan just a few months ago to lay off 30,000 employees over the next couple of years. This past summer, HSBC also said that it planned to cut 30,000 worldwide by 2013 as well as sell half of its retail bank branches in the U.S.

If you are in the banking or financial industry, know your rights in the event you are laid off. Although losing your job and security can be devastating, it is imperative that you stay calm and don't sign any severance agreement without consulting our experienced Severance Attorneys. For example, if you are laid off from Citigroup, you know that it has already set aside money related to severance pay. Our attorneys can help you figure out your strengths and any potential claims you may have to obtain the best possible severance package. Also keep in mind with massive layoffs that State and federal law require your employer to give advanced notice of being laid off. For example, under New York's Worker Adjustment and Retraining Notification Act ("WARN Act"), if a business has 50 or more full time employees and plans to lay off 33% of its workforce or 250 or more workers, it must give 90 days notice. These are just a few things to consider when you are laid off.

In this time of massive layoffs and restructuring in the financial industry, it is crucial to know your rights and options to protect yourself during any period of unemployment you might have to endure. If you have been recently laid off, call our Severance Attorneys at Villanueva & Sanchala at (800) 893-9645 to help you figure out if you're former employer is giving you the best possible severance package you deserve. Our attorneys have negotiated better packages clients let go from many Fortune 500 companies.

Continue reading "Laid Off Employees: Don't Sign that Severance Agreement Without Consulting Your Attorney" »

Bank of America ("BofA") recently announced that it started to layoff employees as part of its restructuring plan to eliminate 30,000 jobs "over the next few years." With the massive layoff, BofA hopes to save $5 billion per year. However, this means that you as well as many of your colleagues will need to find new employment. Not knowing how long that may take, it is crucial to leave your former employer with the best possible severance package to cushion yourself till you find your next job.

Bank of America is a multinational banking and financial services company and the second largest U.S. bank holding company by assets. It is headquartered in Charlotte, North Carolina and serves clients in over 150 countries. Along with Citigroup, JP Morgan Chase, and Wells Fargo, BofA is considered to be on the Big Four Banks in the country. With the European debt crisis and sluggish U.S. economy, many banks and financial companies are terminating thousands of employees to cut costs.

We have counseled many former banking and financial sector employees who have been laid off. As each situation is different, contact us to learn about your specific termination rights at your workplace. The following are some general tips to keep in mind when being laid off:

• Stay calm and don't say anything you might regret. Remember that you will probably need your old manager or supervisor for a reference when you start looking for another job. They might even be able to refer you to someone they know at another company looking for someone with your skills. In other words, don't burn your bridges when you get laid off.

• Your employer is not required to give you a severance package but the growing tendency today is to provide a separation package. Companies use this as a way to preemptively avoid any risk of employees suing for wrongful termination, discrimination, or sexual harassment. Make sure you are not signing away any claims you might have against the company based on age, gender, race, sexual orientation, or retaliation. For example, out of the 500 highest earning people who were laid off, were they also all the older employees? Every situation is different and will depend on the facts. Consult with an attorney to make sure you are not signing away rights and that you are getting the best possible severance package. Our Attorneys have helped many laid off employees use their potential claims as leverage to negotiate a better severance package.

• With rising health care costs, extended health insurance is a very important issue that could cost you thousands. If your former employer has more than 20 employees and offers your health insurance, except in very limited circumstances, it must offer you the opportunity to continue health insurance coverage at your expense for 18 months. This may still be cheaper than you finding an individual policy so make sure you ask for it.

• If you are offered a severance package, be wary of any non-compete or non-disclosure clauses. You don't want to limit your ability to get another job. Our attorneys can help you determine the enforceability and fairness of any such clauses.

These are just a few considerations to keep in mind if you are laid off. Our attorneys have helped hundreds of terminated employees know their rights and obtain the best possible separation packages. If you have recently been laid off, call our Severance Attorneys at Villanueva & Sanchala at (800) 893-9645 to help you make sure you are aware of all your legal options.

Continue reading "Severance Pay Issues for 30,000 employees laid off by Bank of America" »

No. Unless there is a contractual obligation or a controlling employment policy requirement, an employer does not have to pay severance pay to a separating employee. Often, this is hard reality for long-time employees who have devoted their life to the Company. However, generally, employees are entitled to accrued vacation pay unless there is a contrary company policy.

In addition, separating employees could be entitled to 60 or 90 days notice under the New York State and Federal WARN acts, respectively, if an employer lays off a triggering amount of its workforce.

Even though employers in the United States are generally not required to provide severance, unlike employers in numerous other countries, many employers do so in order to obtain a signed release of a waiver of all claims against the company. If you are given a Severance Package or Severance Pay Agreement, you should have an experienced employment lawyer review it before you sign it so that you know your rights and receive the maximum amount of compensation. If you are over 40 years old, employers must give you atleast 21 or 45 days to review the Agreement in order to obtain a full release of age discrimination claims. However, if you are under 40 years old and are not let go as part of a reduction in force, your employer may give less time to review your separation agreement.

You should never sign an agreement without taking it home and properly considering its consequences and having an experienced employment lawyer review it. Contact our Severance Agreement Lawyers at (800) 893-9645 to learn how to maximize the value of your severance package. Our Severance Pay Lawyers will review your agreement with you paragraph by paragraph and analyze whether you have any employment law claims of discrimination, harassment, or otherwise against the company.

Continue reading "Severance Pay Q&A: I just got laid off from my job. Am I Entitled to a Severance Package?" »

This is a very common question received by our New York Severance Package Attorneys. It is important to seek the advice of your accountant regarding taxation issues but here are some general tips. Generally, yes, severance pay is considered taxable as wages. In addition, payments you receive for accrued but unused vacation days and sick days are taxable. However, generally, your former employer's payments to your health insurance provider for continued coverage under COBRA may not be attributed as income to you and may be tax-free to you. There could be potential tax consequences of payments for stock options, pension credits and outplacement services as well. Our New York Severance Package Lawyers have negotiated many severance pay agreements and can help you understand and maximize the terms of your severance package. Again you should seek the advice of your tax professional regarding your specific tax issues as we are not tax attorneys and cannot provide any specific advice.

This is a common question that our New York and New Jersey Severance Pay Lawyers regularly receive from our clients. In New York, except in very limited circumstances, employers are required to pay employees for unused accrued vacation pay upon termination of employment. Many employees mistakenly believe that they accrue full vacation time (e.g., two weeks) upon their date of hire. Generally that is not true. Most companies have a schedule wherein vacation time accrues on a monthly basis. For example, if an employee only worked six full months, that employee may have only accrued half of his or her vacation allotment. In most cases, employees should receive payment for their accrued vacation pay even if they do not sign a Severance Package. Although it is not common in New York, employers may require employees to forfeit their vacation pay unless certain criteria such as signing a Severance Package. In order for employers avail themselves of this benefit, they must notify their employees in writing of the conditions regarding forfeiture of vacation pay.

In New Jersey, generally employers are not required to pay accrued and unused vacation pay to separating employees. However, our Severance Pay Lawyers have successfully argued that our clients should receive vacation pay based on several legal arguments. An experienced employment attorney can negotiate more favorable terms of your severance pay agreement. In recent years, there has been increased litigation, including class actions, regarding the accrual, capping, forfeiture and payment of vacation pay.

Call now to speak with one of our experienced Severance Package Lawyers to discuss the terms of your severance agreement - (800) 893-9645.

Continue reading "Severance Package Lawyer Update: Should My Severance Pay Include Payment for Accrued Vacation Days? " »

Q: I've worked for the same investment bank for 4 years and I am nervous that I may get laid off. Is my Wall Street firm required to give me a severance package?
A: Except in very limited circumstances, the law does not require your employer to give you a severance package. In today's economic climate, the growing tendency is to offer employees a package before they are terminated. We have seen circumstances where severance packages are not devices to "soften the blow" but a strategic, preemptive move by human resources to have you waive your right to sue for wrongful termination, discrimination, or sexual harassment. It is for this reason that we recommend that
you call our experienced New York Severance Pay Attorneys for a confidential consultation today at (800) 893-9645. Do not sign a severance agreement without having an experienced attorney review it with you and, if appropriate, negotiate its terms.

Q: What Does A Typical Severance Package Look Like?
Each severance package will vary from company to company. Some
severance packages are one page in length while other can be over 15 pages. It all depends upon the savvy and acumen of your human resources department and in-house counsel. There are some things that will be universal in any standard severance package. You should be very careful about what you give up in exchange for receiving severance pay - most, if not all, will include a release of your claims but many will also include confidentiality, non-disparagement, cooperation, non-competition, non-solicitation and other post-employment obligations. Many of these obligations and the amount of severance pay can be negotiated by experienced Severance Agreement attorneys.

Q: If I receive a Severance Package, How Much Severance Pay Should I Receive?
A: Most severance packages will include some kind of compensation based
upon a formula derived by the company. For example, you may receive
one week of salary for every year that you worked for the company. However, each situation is different and, depending on if you have a claim or your individual circumstances, our Severance Package Lawyers may be to negotiate greater severance pay or more favorable terms.

Q: Can I Still Continue My Health Insurance Benefits?
A: Congress has enacted Federal laws and most states (including New York, New Jersey and Connecticut) have enacted laws that require an employer to offer you continued health insurance benefits at your expense. Most people refer to these laws as COBRA and Mini-COBRA statutes. Expenses for COBRA can be very expensive and a seasoned attorney may be able to negotiate its coverage as part of your severance package.

Q: Can I Receive Severance Pay and Still Collect Unemployment Insurance Benefits?
A: It depends on the terms of your severance pay. We recommend that you call our employment severance package lawyers to discuss this in further detail. Call today to schedule your consultation at (800) 893-9645.

Q: Can Your Law Firm Help Me Make Sense Of this Document Filled With Legalese?
A: Yes. Your former employer has a team of lawyers fighting to ensure its interests are protected. You should too. Call our Severance Package attorneys at (800) 893-9645 to schedule your confidential consultation today and protect yourself.

We previously wrote a blog about negotiating severance agreements and severance packages. This follow-up post specifically deals with the issue of unemployment insurance benefits and severance agreements.

In New York State, you are generally not disqualified from receiving unemployment insurance benefits if you are at the same time receiving separation related benefits such as severance pay or a severance package. However, if your severance package constitutes receipt of your full salary and exactly the same benefits that you received while you were working with the understanding that the salary and benefits will discontinue if you get a job elsewhere, then you are disqualified from receiving unemployment insurance benefits. Some employers do this to prevent you from double dipping and collecting both a severance package and unemployment insurance benefits, but most severance agreements do not have this provision. Your employer's payment to you of unused accrued vacation time will not affect your eligibility for unemployment insurance benefits.

It is important you carefully examine any limitations receiving severance pay may place on your right to unemployment benefits. Effectively negotiating your severance agreement could affect your future employment status as well as your financial health. Our attorneys can help you analyze your severance package including your non-compete clause, stock option payments, right to positive reference, as well as any releases or waivers. For example, if you think you might have an employment discrimination lawsuit, one of our New York Severance Contract Lawyers can help you figure out if you have a valid lawsuit before you sign a release or waiver to discrimination claims you might have against the company.

Our New York Severance Pay Attorneys can help you negotiate critical terms such as the duration and manner of your severance pay. Before you sign a severance agreement, contact one of our experienced Severance Agreement Attorneys at (800) 893-9645 to help you read the fine print to make sure you are not limiting your right to unemployment benefits or other important legal options. Meet our Lead Severance Pay Agreement Lawyer.

Continue reading "New York Severance Pay Follow-Up: Does receiving severance pay disqualify me from being eligible for Unemployment Insurance Benefits in New York State? " »

As a result of the recent economic recession, layoffs and downsizing, it is increasingly more important to negotiate a fair severance agreement. In 2001, only 5% of professionals and 4% of supportive staff negotiated their severance packages whereas in 2008, 31% of professionals and 22% of administrative workers did so. A strong severance agreement can help cushion the burdens of unemployment until you find your next job. Don't sign your severance agreement until you speak with one of our Severance Pay Agreement Attorneys. Meet Our Lead Severance Pay Attorney.

Tip No. 1 -- The most important thing in any negotiation is to keep your emotions in check. Give yourself time to process what the company is offering you without being angry at the company for laying you off. By acting professional and courteous, you can be in much better to seek assistance of competent counsel and negotiate a much more lucrative agreement.

Tip No. 2 -- Be wary of immediately signing any waivers or releases to claims arising out of your employment with the company. Ask yourself are there are any claims you might have against the company for workplace discrimination based on age, gender, race, sexual orientation, or retaliation. For example, did the company lay off all the higher paid employees who are older employees? Is there a potential age discrimination lawsuit? Every situation is different and depends on the facts. There are special rules for severance agreements under the Age Discrimination in Employment Act (ADEA) and the Older Workers Benefit and Protection Act (OWBPA). The release provision may be invalid if your employer did not follow the specific regulations. In the event you think you might have an employment discrimination lawsuit, do not sign the severance agreement without speaking to an attorney. With the help of a Workplace Attorney, you can figure out if you have a strong lawsuit, how much it is worth, and whether that claim is worth more than the severance package. If your claim is worth more than the severance package and you decide not to go forward, you can still use your claim as leverage to negotiate a better severance package.

Tip No. 3 -- Extended health insurance is an extremely important issue that could cost you thousands of dollars if you don't negotiate. If your former employer has more than 20 employees and offers your health insurance, except in limited circumstances, the company must offer you the opportunity to continue health insurance coverage at your expense for 18 months. Although you will have to pay for it, it may be still be cheaper than buying individual health insurance on your own and it may provide better coverage than you may find with an individual policy. As described in our prior blog post, you may also be eligible for a federal COBRA 65% subsidy of the health insurance coverage.

Continue reading "Negotiating Severance Packages, Severance Agreements & Severance Pay: Top 10 Things You Need to Know" »