Current:Home > NewsWhat should I consider when offered a buyout from my job? Ask HR -WealthGrow Network
What should I consider when offered a buyout from my job? Ask HR
View
Date:2025-04-13 23:07:23
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! (8)
Related
- Finally, good retirement news! Southwest pilots' plan is a bright spot, experts say
- Voyager 2 is the only craft to visit Uranus. Its findings may have misled us for 40 years.
- Tom Brady Shares How He's Preparing for Son Jack to Be a Stud
- GM recalling big pickups and SUVs because the rear wheels can lock up, increasing risk of a crash
- 2025 'Doomsday Clock': This is how close we are to self
- FC Cincinnati player Marco Angulo dies at 22 after injuries from October crash
- Cowboys owner Jerry Jones responds to CeeDee Lamb's excuse about curtains at AT&T Stadium
- Armie Hammer Says His Mom Gifted Him a Vasectomy for His 38th Birthday
- What do we know about the mysterious drones reported flying over New Jersey?
- When do new 'Yellowstone' episodes come out? Here's the Season 5, Part 2 episode schedule
Ranking
- US wholesale inflation accelerated in November in sign that some price pressures remain elevated
- Man Found Dead in Tanning Bed at Planet Fitness Gym After 3 Days
- Stock market today: Asian stocks dip as Wall Street momentum slows with cooling Trump trade
- Homes of Patrick Mahomes, Travis Kelce burglarized, per reports
- Sam Taylor
- Armie Hammer Says His Mom Gifted Him a Vasectomy for His 38th Birthday
- Multi-State Offshore Wind Pact Weakened After Connecticut Sits Out First Selection
- Moana 2 Star Dwayne Johnson Shares the Empowering Message Film Sends to Young Girls
Recommendation
Sam Taylor
Trump pledged to roll back protections for transgender students. They’re flooding crisis hotlines
Rare Alo Yoga Flash Sale: Don’t Miss 60% Off Deals With Styles as Low as $5
Horoscopes Today, November 12, 2024
What do we know about the mysterious drones reported flying over New Jersey?
Deommodore Lenoir contract details: 49ers ink DB to $92 million extension
Disruptions to Amtrak service continue after fire near tracks in New York City
Disruptions to Amtrak service continue after fire near tracks in New York City