Anyone knows what the severance package looks like?
12 replies (most recent on top)
Anyone reading this post needs to understand some facts. First, severance is not required by any state or federal labor laws. Second, some of the Apache severance details posted here are wrong and some outdated. I no longer work for Apache but I was in HR when I did.
The most important take away is that Apache has not given severance to everyone regardless of termination for a very long time. During the most generous times, a scoring system was used based on tenure, job class, age, gender, race and other risk factors. From my understanding this template is still used but not as stringently. The slightest evaluation that the target employee could be let go for cause can tip the criteria scale from fewer to none.
Enjoy.
Just know that they will do what is required by law and you can feel free to wipe your a-s with whatever kind of noncompete they encourage you to sign. Texas is a right to work state. The only way that they can prevent you from going to a competitor is by paying you
Some hopefully helpful additional information:
In the 2020 layoffs, there were pay bumps if you were over 40, 50, and 60, with each age group getting its own bump. There was also an adder based on your job title.
Someone who was in their mid 40s, with between 10-15 years at APA, and a mid-range job title, got a payout of around 8-9 months worth of pay.
Considering that they were laid off in March, but were also paid wages-in-lieu in notice for 2 months because of the WARN Act, they effectively got paid a full year of salary and only “worked” for three months.
The actual payout amount made no real sense and HR couldn’t, or wouldn’t, provide information on how it was calculated. Probably doesn’t matter anyway because it isn’t negotiable for most people.
In the COVID days, getting a severance payment didn’t affect your ability to get unemployment. Some people claim that is not the case now.
Either way, though, apply for unemployment the day you get laid off. There’s no harm in doing so and waiting is your enemy. Let TWC figure out if your severance affects your unemployment payment.
You can get a sense of potential COBRA costs by looking at your 2024 W-2, box 12, code DD, which shows the cost of health insurance. Take that number and multiply it by 1.02 to get an idea of what your annual COBRA cost would be, but adjust for this year’s increases, if any.
In the COBRA cost sheet I saw in 2020, there wasn’t a significant difference between the APA saver and APA gold costs, but not sure what insurance is offered to you all these days and if the costs between the two have changed much.
But look up the COBRA 60 day loophole and see if it might work for you. It could save you a lot of money if it does.
Lastly, the severance agreement that you are given to sign—if it is anything like the one given out in 2020–is a bit of a joke. There is some questionable language in it, but it also contained a big loophole that you’d think the HR-legal guy would have spotted, but apparently not.
Looking back, those who got laid off in 2020 might have gotten the best deal: wages-in-lieu of notice for 2 months, a severance package, ability to get immediate unemployment assistance upon officially being laid off in May, unemployment that got increased and extended several times, and they didn’t have to deal with working for JC and his merry band of fools anymore.
Good luck to those who still have to.
If you are a minority or over 40/50/60, you get paid more. So, white guys, fight the power and state reverse racism. You wouldn't be wrong.
Shell 1.5 years salary, Marathon 2 years, Apache two weeks per year of service…
Lol health insurance without a job. You live in Texas you’re fugged
Start looking into health insurance. I guess they may offer short term Cobra. It’s going to be very expensive (cobra or market) esp if you also insure your family.
Just wanna say thank you to @a9+1jjr1n5z7
Yes, the package is Apache stops paying you and you stop working for them.
Use up your vacation, as well. Even though it fully reloads on Jan 1, you haven’t technically accrued it.
Likely 2 weeks pay per year of service, capped at a one-year maximum payout (so if you have been with the company for 10 years, you’d get 20 weeks of pay, or roughly 5 months’ worth).
But there could be additional pay if you fall into a protected class (primarily, if are over 40), which could adjust the payout to roughly 3 weeks per year. Although with some of the latest EO’s out of DC, who knows if such protected classes still exist.
Health insurance would run through the end of the month in which you are laid off, so if the ax falls on the 29th, for example, you get basically turfed.
If you think you are targeted for a layoff, use up all of your FSA account money (if you have any) before the layoff, even if you haven’t fully contributed to it. Just like the company gets to keep any monies you set aside and didn’t use, you get to spend all of it even if you haven’t (or can’t, due to the layoff) fully contributed to it. The company gets stuck with the bill for the difference between what you actually contributed and what you planned to contribute (and actually spent).
I wouldn't expect any more than project descend, Apache is known in the industry for having horrible packages