Just received a letter from Texas Unemployment that I was disqualified for unemployment for a year because of the severance pay. I was told and thought I saw in some old threads that Chevron's severance was considered a "buyout or something" and not payment in lieu of wages since it is paid in one lump sum and not stretched out over time. Anyone have any information on this?
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Good explanation on this website consistent with other posts on TWC
https://www.sapling.com/8477339/can-unemployment-texas-severance-package
Another extract from TWC
Release and Waiver Agreements
Do not try to include prohibitions against unemployment, FLSA, EEOC, and NLRA claims. Texas law flatly prohibits any agreement not to file an unemployment claim, and any such agreement is void and unenforceable. The right to minimum wage and overtime pay may not be waived (Brooklyn Sav. Bank v. O'Neil, 324 U.S. 697, 65 S.Ct. 895, 89 L.Ed. 1296 (1945)). EEOC takes the position that attempting to have an employee promise not to file an administrative claim regarding employment discrimination is potential evidence of intent to discriminate. The NLRB has signaled a similar view regarding employee rights under the NLRA.
Incentive money, i.e., money paid to secure an employee's agreement not to file claims or lawsuits, is not regarded as severance pay for unemployment claim purposes and will not affect unemployment benefits.
The enforceability of such an agreement will be dependent in part upon the extent to which the terms are expressed in plain language. Complicated wording and arcane terminology will generally make the agreement less enforceable.
Just like arbitration agreements, release agreements must meet certain standards as to readibility, clarity, and equitable (fair) treatment.
The agreement should make it as clear as possible that in return for accepting whatever incentive is offered and signing the agreement, the employee gives up the right to pursue various claims in court.
Include language in conspicuous lettering advising the employee of his or her right to seek legal advice before signing the agreement, and allow a reasonable time (most companies allow at least seven days) for signing. For special rules regarding releases signed by employees age 40 or older, see "Early Retirement - Voluntary Leave Incentives - Age Discrimination Issues" in this outline.
Preparing a valid release that has a high likelihood of standing up in court really requires the assistance of an experienced employment law attorney. In light of all the laws favoring employee rights, and of public policy against anything that limits a person's access to the court system, it is simply inadvisable to attempt to prepare a release agreement without such help.
It says incentive money paid to secure an employees agreement not to file claims is not considered severance pay
From TWC code
Other types of post-termination payments that are neither severance pay nor wages in lieu of notice:
an incentive paid to obtain a release or waiver of liability from the departing employee with regard to the Civil Rights Act of 1991, or to settle a claim or lawsuit that has already been filed, or in connection with a written contract that was negotiated between the employer and employee prior to the date of the work separation - a payment like that will not affect unemployment benefits.
liquidated damages - this kind of payment would also not affect unemployment benefits. TWC recently held (in a non-precedent wage claim case) that an amount promised as liquidated damages in an employment agreement ("If such-and-such happens and you are terminated prior to ____________, XYZ Company will pay you $____ in satisfaction of any remaining obligations it may have toward you.") is an enforceable part of the wage agreement under the Texas Payday Law.
A slightly different definition of "severance pay" is found in the Texas Payday Law, where it is defined in Rule 821.25(b) as "payment by an employer to an employee beyond the employee's wages on termination of employment, based on the employee's prior service. Severance pay does not include payments for liquidated damages, payments in exchange for a release of claims, or payments made because of a lack of notice of separation." Severance pay that meets that definition is an enforceable part of the wage agreement under Section 61.001(7)(B) of the Texas Labor Code.
Bottom line it states that if it is an incentive to obtain a release or waiver of liability from employee then it is not considered severance. Chevron will not give you the severance amount if you do not sign the waiver. Hence it is not classified as a severance for unemployment benefits. My interpretation should get it checked.
How is lying to the state agency a federal crime??? LOL
At most, it's a state crime.
If you lie on the application, which is a federal crime punishable by law and say that you are not receiving a severance it is possible to receive your benefits sooner, rather than later. Some people do that, and are guilty of a crime, and some people obey the law. There are honest people and there are pathetic loser criminals, as there always will be. The severance itself doesn't permanently disqualify anyone for benefits, no one implied that. Being a lying dishonest criminal POS does make you pathetic and a petty loser though. no one's denying that.
@2dka, State Unemployment benefits are funded by your employer, so nothing to do with taxpayers. Learn the law and defend your rights, else accept being walked over in life. The severance and up to 6 months of unemployment is for you to leave or take. Now, if you are referring to the $300 to $600 in federal weekly subsidy on top the State UI benefits, yes— that much is taxpayer derived from the debt our useless Congress is putting the country in. There’s not much to do but take the money. If you’re one of those principled people who protest every last thing that’s beyond your control, then take the additional amount and donate it to a deserving charity or your church.
There is no voluntary severance available. If you raise your hand to EOI, you are saying you don’t mind if they fire you. If you EOI, you are then involuntarily terminated due to the reorg. Laid off. Fired. You are eligible for unemployment benefits paid for by Chevron, not taxpayers. If you want Chevron to keep the money, don’t file. Personal choice. It is $12,000. I need it so I will file.
applied "in the moment" ? ...honestly I don't think any taxpayer should be on hook for unemployment for anyone who volunteers to take up to one year payout of severance, and then turn around and ask for government handout. Now, someone 'left standing' and receives severance, different facts, especially if unable to find work, but jobs are out there. Sorry, but something wrong with folks getting six figure severance payouts, multi million pension/401k assets, yet claiming for govt to feed them and milk system
@1jba, I proceeded without peril. I applied online for my UI benefits and answered the question in the moment, that I have NOT received severance pay. My unemployment benefits started up the following Friday and kept coming all 6 months. No further questions from Texas Workforce Commission. Those people are way too busy to follow up on anything.
Because Chevron is tying the severance to years of service, it becomes a payment based on earlier work. In Texas, this can not be used to disqualify unemployment benefits because it is not compensation which overlaps the benefit payment period; it is based on an earlier period. The form is asking if you will get paid wages after termination in lieu of working. You will not.
Precisely as to pervious post, if you FASELY (even inadvertently think these is a technical loophole) represent that you are not “eligible” for severance benefit per Chevron’s company policy, you could on the hook for UI re-payment in kind. Including penalties, interests. Would really s—, to re-pay the bill down the road, especially in retirement.
Trust advisory point of view of your Accountant, Financial Advisor and/or Attorney and not some anonymous poster.
That is why they are getting paid
What some posters have noted below is also that if you commit a crime, and lie on an Unemployment benefits application by indicating that you have not (or will not) received a severance, you make be able to cheat and get away with it. About to receive it is the same receiving it, legally, in this case, if you accept UI and the severance simultaneously, and that question is asked weekly for benefits, IIRC.
You could easily end up liable for returning payments. I have seen it happen several times.
Proceed at your own peril.
To earlier post ... I was laid off here in 15 and received unemployment the first week after my last day of employment. The other poster doesn’t know what he is talking about.
So, Chevron Passive / Aggressive
If you’re sitting on your paperwork, but file for unemployment aren’t you committing fraud since you’re still technically employed? I mean if you can get over on the man, good for you but that may be a bit risky.
@1pfy You would think so but no. Because of the wording of the paperwork I received (I took early EOI), it confused me because it effectively said you qualify for the severance package only if your involuntarily severed. You'd think if you raise your hand, it's voluntary. I called my HR mgr to clarify and it was confirmed that it is considered an involuntary separation.
Chevron has long said that your unemployment benefits are guaranteed and that they would not contest your application for getting those benefits. This has always been true. Chevron has always stated the truth. But, I think it would be very beneficial for HR to invite a State Unemployment Benefits specialist or a senior representative of the State Workforce Commission to participate in a webinar or online presentation, where they can shed more light or instruct any laid off Chevron employee on how to apply for benefits, with special emphasis on the question they ask about the severance pay. I know that HR themselves do not like to provide “advise” on external affairs to the company, but if they can arrange a knowledgeable representative on the subject to inform, then this will go a long way in calming many soon to be Chevron retirees.
@1pfy, there may a difference in semantics, but where you voluntarily EOI or are forced out, Chevron is going to disclose the reason for your separation as “Lack of Work”, so fundamentally and for the record, you were laid off. This won’t affect your application for State UI benefits.
Isn't being laid off much different then volunteering to take a severance package? I'd think so.
Just make sure you clear to what the State means by “employee is eligible” to following definition of Severance pay:
Severance pay is a sum of money that an employee is eligible to receive upon separation
Every State is facing unprecedented financial times right, you will want to make sure you’ve acknowledged “complete” and “true” in your submission. That way you mitigate possible restitution down the road.
Consult with you attorney, if still not clear
When I applied to TWC for Texas Unemployment Benefits in 2015, it asked the question about severance pay. I answered “No”, to receiving a severance. I technically answered the question correctly since I had not received my severance check at the time of my UI application. I was waiting the 60 days to sign my waiver papers before returning it to get my severance money. The bottom line is there are two forms of severance pay in Texas. The type that Chevron pays is a one-time payment in full. This kind of severance does not disqualify you to start your UI benefits right away. But, the second kind of severance is called “pay in lieu of severance” and are payments your ex-employer makes over time, not a large single payment. This last type of severance does not disqualify you from receiving UI benefits in Texas, but you won’t be able to start drawing UI benefits until the last of the payments in lieu have ended. To be safe in not making a mistake, apply for your TWC unemployment benefits as soon as possible and before your send back your waiver papers to Chevron legal. That way you can honestly answer the question as to you are not getting severance pay.
Straight from State of Texas Website
Severance or Wages Paid Instead of Notice of Layoff
Severance Pay
Severance pay is a sum of money that an employee is eligible to receive upon separation. Employers may have a company policy to pay severance pay.
You must report any severance pay to TWC when you apply for benefits or by calling a Tele-Center at 800-939-6631. Under Texas law, you cannot receive benefits while you are receiving certain types of severance pay. We will mail you a decision on whether your severance pay affects your unemployment benefits.
I was laid off here in 15 and received unemployment the first week after my last day of employment. The other poster doesn’t know what he is talking about.
Have laid off in the past (other states) as part of Corporate Transformations, basically had to wait until severance period (payment for time of service) before UI would kick in. State UI is not about folks double dipping.
I left Chevron in 2016 as a part of Project Alpha. I applied for unemployment funds without including my severance money. I was approved without any problems