Do US employers have a legal obligation to pay severance when they lay off employees?
by 
Ed the Jetpacking Headbanger
ANSWERS: 3
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No, unless it was in the original employment agreement or policy. Even then I have seen a lot of things going on that I thought I would never see. Some companies have gone out of business, locked their doors, and never paid the employees for their last pay check. The state of California has actually gone against the Union Contract in forcing the workers to take unpaid days off, and the courts allowed it.
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I don't see why they would. There is no legal obligation to pay vacation pay or holiday pay or provide health insurance either. :(
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Army Veteran There is a legal obligation to pay vacation pay or any other bonus if it was part of the employee's work agreement and that employee has complied with the prerequisites for such pay. Vacation pay is "earned" pay.
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no obligation
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