Current:Home > FinanceWhat should I consider when offered a buyout from my job? Ask HR -Wealth Legacy Solutions
What should I consider when offered a buyout from my job? Ask HR
Poinbank View
Date:2025-03-11 07:10:24
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! (6562)
Related
- Pressure on a veteran and senator shows what’s next for those who oppose Trump
- Save 70% On Coach Backpacks for School, Travel, Commuting, and More
- Minnesota Emerges as the Midwest’s Leader in the Clean Energy Transition
- Miranda Lambert Stops Las Vegas Concert to Call Out Fans for Taking Selfies
- Residents worried after ceiling cracks appear following reroofing works at Jalan Tenaga HDB blocks
- A University of Maryland Health Researcher Probes the Climate Threat to Those With Chronic Diseases
- This Texas Community Has Waited Decades for Running Water. Could Hydro-Panels Help?
- invisaWear Smart Jewelry and Accessories Are Making Safety Devices Stylish
- Dick Vitale announces he is cancer free: 'Santa Claus came early'
- Environmentalists in Virginia and West Virginia Regroup to Stop the Mountain Valley Pipeline, Eyeing a White House Protest
Ranking
- Arkansas State Police probe death of woman found after officer
- Dylan Sprouse Marries Barbara Palvin After 5 Years Together
- Blac Chyna Celebrates 10 Months of Sobriety Amid Personal Transformation Journey
- Promising to Prevent Floods at Treasure Island, Builders Downplay Risk of Sea Rise
- Most popular books of the week: See what topped USA TODAY's bestselling books list
- On the Eve of Plastics Treaty Talks, a Youth Advocate From Ghana Speaks Out: ‘We Need Urgent Action’
- Ariana Grande Joined by Wicked Costar Jonathan Bailey and Andrew Garfield at Wimbledon
- A Composer’s Prayers for the Earth, and Humanity, in the Age of Climate Change
Recommendation
Will the 'Yellowstone' finale be the last episode? What we know about Season 6, spinoffs
Bebe Rexha Shares Alleged Text From Boyfriend Keyan Safyari Commenting on Her Weight
RHOBH's Kyle Richards Celebrates One Year of Being Alcohol-Free
Florence Pugh Saves Emily Blunt From a Nip Slip During Oppenheimer Premiere
Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
Who Said Recycling Was Green? It Makes Microplastics By the Ton
Pennsylvania Expects $400 Million in Infrastructure Funds to Begin Plugging Thousands of Abandoned Oil Wells
How Wildfire Smoke from Australia Affected Climate Events Around the World