Unemployment compensation benefits pay workers who lost their job without fault a modest weekly payment until the worker finds a new job, up to a specified number of weeks.Each state administers its own unemployment compensation program.
Importantly, if employers do not deliver a promised ERISA benefit, or interfere with employees' right to it, ERISA gives employees the right to go to court.
Employees who win ERISA cases can also receive an award to pay for their attorneys’ fees.
ERISA is the same law that covers employer group health insurance plans.
ERISA requires employer who offer ERISA plans to put them in writing and to provide written summaries to covered employees.
The company can hardly expect to get much of a return from an employee it just terminated.
From a rational economic perspective, though, these companies arguably earn a reputation for fair play among the small universe of potential employees for top positions.Employers who create severance pay plans can and do specify the terms, choose who participates and decide what to pay and when.Employers can modify or terminate severance pay plans whenever they want, and owe only the severance resulting from a triggering that already occurred.Employees can also bargain with employers over severance pay at the end of their employment relationship.The employer may want a clean break and a promise by the employee not to suet.Unemployment compensation benefits, which are also known as unemployment insurance, are not, technically, a form of severance pay.