Do I pay him his severance

UPDATED: Oct 1, 2022

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Do I pay him his severance

Our previous employers was laid off, so we offered him a severance package.. 1 week later we asked him to work as a 1099 because we had occasional work that same day he signed the severance agreement. Do I pay him?

Asked on September 18, 2017 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Yes, you have to still pay him the severance unless the severance package/agreement stated (as some do; you can add this term to it) that if rehired within a certain time, whether as employee or contractor, the person will not get some or all of the severance. But without such a contractual limitation, you agreed to pay him severance; the fact that you then voluntarily agreed to hire him in any capacity does not affect the contractual obligation to pay severance which you took on.

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