Rights When You Lose a Job

When an individual quits or loses their job due to a termination or a lay off, they have certain rights before they leave. An individual may be entitled to certain things after they lose their job, including:

• A severance package;
• A final paycheck;
• Health insurance; and
• Unemployment insurance, or unemployment benefits.

Do I Have any Contract Rights?

Sometimes, employees sign an employment contract when they are hired. These contracts often obtain terms and agreements that the employer and employees have agreed to when the individual was hired.

The parties to the contract are the employer and the employee. Employment contracts contain terms and provisions regarding the employment relationship. For example, the contract may contain terms such as the employee is required to work for the employer for a certain number of hours or for a yearly salary.

Employment contracts may also specify benefits, which may include paid time off or health insurance. Contracts may also state what the grounds for termination will be and the required amount of time a party must give if they wish to terminate the contract. Certain employees also have contract rights which are covered by a union or by a collective bargaining agreement that gives employees certain rights if their employment is terminated.

Not every employee signs an employment contract. It is important to note that employment contracts may be oral, but it is best if they are written. Should a dispute arise between the employer and the employee, the contract can help resolve it.

In addition, as with any type of contract, the employment agreement must not be signed as a result of:

• Duress;
• Coercion;
• Misrepresentation; or
• Undue influence.

One type of employee that is likely to have a formal employment contract is a sales representative. The contract may outline the key accounts to which the representative will sell their employer’s products or services.

An employment contract may also specify other types of duties, such as attendance at training sessions and sales meetings. The contract may also specify the amount of salary and commission the representative will be paid.

Once the employment contract is signed, it is binding on the employer and the employee. This means that if either party fails to perform as specified in the contract, they can be held liable in court.

What is a Severance Package?

A severance package is not required by law but many employers offer certain benefits to employees that lose their job. A severance package is often created in a written contract and employee handbook. However, it can also be created by an oral promise or a history of paying severances to other employees in the same position. If your employer promised an employee a severance, they may be legally obligated to provide it.

Do I Get a Final Paycheck?

There are many states that have laws which dictate when an employee must receive their final paycheck. Some laws specify whether or not any unused vacation pay must be included.

For example, employees in Colorado must be given their final paychecks immediately if they are terminated or laid off but must receive it on the next payday if they quit. California employees who are terminated or laid off must receive their final paychecks immediately, but employees who quit may have to wait up to 72 hours.

Can I Still Receive Health Insurance?

Yes, an individual may still be able to receive health insurance when they lose their job. There are programs available, such as COBRA and similar state laws that provide for health insurance continuation when an employee quits, is laid off or is terminated for any reason other than gross misconduct.

Pursuant to COBRA, employers that have 20 employees or more must offer their employees the option of continuing to be covered by the company’s group health insurance plan for a specified period of time after their employment ends. The employee is required to pay the full cost of this coverage, which also includes family coverage.

Do I have any Statutory Rights?

Yes, there are many statutory rights which are provided under state and federal law. There are many state and federal laws that require employers to provide unemployment benefits, including:

• Insurance;
• Advance notification prior to the termination of employment; and
• Advance notification when there is a closing of the company or substantial lay-offs.

State and federal laws also provide anti-discrimination laws that employers must follow.

What about Unemployment Insurance?

Unemployment Insurance may provide individuals with financial help if they lose their job, temporarily or permanently. The benefits will be less than the individual’s former pay and last for a limited time, typically about 26 weeks.

In addition, not all individuals who are out of work are entitled to unemployment benefits. An individual will only be eligible if they lose their job through no fault of their own.

What if My Termination Was Due to COVID-19?

Due to the COVID-19, or coronavirus, pandemic, Congress passed a law that gives employees the right to have paid leave and paid sick time that is related to the virus. This act is called Families First Coronavirus Response Act (FFCRA).

The Act provides eligible covered employees with the following:

• Two weeks, or up to 80 hours, of paid sick time at the employee’s regular rate of pay when they are unable to work due to quarantine due to a federal, state, or local government order or the advice of a health care provider or when they are experiencing COVID-19 symptoms and are seeking a medical diagnosis;
• Two weeks, or up to 80 hours, of paid sick time at ⅔ the employee’s regular rate of pay if the employee is unable to work due to a bona fide need to care for another individual who is subject to quarantine pursuant to a federal, state, or local government order or on the advice of a health care provider or in order to care for a child who is under 18 years of age whose child care provider or school is closed or unavailable for reasons related to COVID-19; and
• Up to an additional 10 weeks of paid family leave at ⅔ the employee’s regular rate of pay if an employee, who has been employed for at least 30 days, cannot work due to a bona fide need for leave to care for a child whose child care provider or school is closed or unavailable due to COVID-19.

If an individual is terminated after notifying their employer that they are taking leave pursuant to this act, they may be eligible for unemployment benefits. They also need to seek the advice of an attorney regarding a wrongful termination case.

Can I Collect Unemployment Benefits?

Yes, it may be possible for an individual to collect unemployment benefits if they were terminated to laid off through no fault of their own. These employees may file a claim for unemployment benefits. After an employee files an application, their state’s unemployment agency reviews the application and interviews the individual and their former employer.

There are many states that have temporarily loosed the eligibility requirements because of the COVID-19 pandemic. The Coronavirus Aid, Relief, and Economic (CARES) Act created the Pandemic Unemployment Assistance (PUA) program.

The PUA permits states to expand their unemployment eligibility to individuals who would not normally qualify. This includes self-employed individuals and individuals who do not have enough work history to qualify. It is important to note that these changes will not last forever and it is essential to check with an individual’s assistance office in the state where they reside.

Should I Contact an Employment Attorney?

Yes, it is essential to have the assistance of an experienced workers compensation lawyer for any unemployment issues you may have. It is always extremely difficult for anyone to lose their job.

Benefits, such as unemployment benefits, are implemented to ease the impact when this occurs and make your life a little easier during a hard time. Your attorney can review your circumstances, determine which laws related to COVID-19 apply to you, and assist you in receiving any unemployment benefits you deserve.