Thread regarding Chevron Corp. layoffs

Thanks for the useful set of posts, nice to see a thread that does not go off on some childish bickering. A question for anyone: the previous statement “Remember that your severance check will have Federal taxes deducted at 22%”... does that rate hold for everyone? (my normal fed tax rate is 37%).

Life insurance is a rip-off. You are better off without it.

I agree on the "don't cancel life insurance" advice. Life insurance that is converted when leaving a company is way less expensive than going on the open market and buying it unless you are very young. I converted a policy several years ago and the premium is the same cost for $250,000 coverage as would be for a new policy for $30,000 coverage. Also be wary of term life policies, the rates may sound good when you start out but generally increase every 5 years and will automatically cancel at around 80 years old with no value.

In response to "3 days ago by Anonymous", as a Benefits and HR professional I found most of the advice reasonable. However, I take exception with the advice to cancel life insurance, namely: "I would advise you to cancel any benefits you know you’ll not want after leaving Chevron, like life insurance, etc. Do this while in the WARN period." Life insurance, specifically, was mentioned more than once, and frankly I'm not sure why. It is generally advisable to keep any benefits that the company and you are both paying, as long as it is in effect and as long as you are an active employee with the company. Generally, under COBRA, you are given the chance to continue all benefits and convert life insurance policies, although at a higher rate. My concern is, if you cancel life insurance prior to actually losing the coverage through the company, you may lose the option to convert it under COBRA later. PLEASE speak with a Benefits Advisor to check my statements AND before making any decisions to cancel benefits (especially life insurance) during the WARN period.

An exception to the full 60-day notice requirement. (However,
notice must be provided as soon as is practicable even when these exceptions apply, and the employer must provide a statement of the reason for
reducing the notice requirement in addition to fulfilling other notice information requirements)

• Unforeseeable business circumstances: When the closing or mass
layoff is caused by business circumstances that were not reasonably
foreseeable at the time that 60-day notice would have been required
(i.e., a business circumstance that is caused by some sudden, dramatic, and unexpected action or conditions outside the employer's control)

DATES OF TERMINATION/LAYOFF
The WARN regulations recognize that it may not always be possible to identify, 60 days in advance, the exact date a termination or layoff will occur.
WARN notice may identify a two-week (14-day) period during which terminations/layoffs will take place.

Companies avoid any penalties they may face without adhering to the WARN Act notices, if the above are not applicable, by paying laid-off employees for 60 days after they are laid-off.

You might want to read the WARN Act yourself....
https://www.twc.texas.gov/businesses/worker-adjustment-and-retraining-notification-warn-notices

Thanks for the information. A couple more questions
Does the 60 day of WARN act begin when one is notified of lay-off/EOI acceptance or is it after CVX files the notice with government. If it’s the later then one may get much less time after notification.

How long does one get to review the severance papers. I have heard 30 days and also 30-90 days. That affects whether one will get severance this year or next year and what the tax bill will be.

EOI = Severance + ( Jack + Sh!t ) ^2

If you are married, Chevron by default selects to pay your pension as a 100% Joint & Survivor Annuity. If you choose any other type of annuity or the lump sum itself, your wife will need to sign the appropriate page(s) in the packet of retirement documents. This is a legal requirement, since as we all learned by now, she rightfully owns half of everything you have, but you don’t own anything she has.

If you leave on an EOI you will get a vacation payout for any banked hours but keep in mind that vacation payouts do not have a 401k match - they are not benefits bearing. If someone suggests to you that you take vacation or vacation out do it - then you will get the benefits paid. With respect to the pension payout: you will be given a packet of information about how to initiate your lump sum payment. There will be multiple dates that you can select each on the first of a month for about 3 months after you leave. What will actually determine when you get your pension money deposited into your account is the selection you make in benefit connect AND the time by which you complete all of the paperwork for the pension payout. For example if you are married your spouse will have to notarize a document recognizing your pension selection and how it impacts them. You will not get your pay out until all of the paperwork is returned irrespective of the date you select.

Great information posted here. One more question when does one get the lump sum payment from pension plan, is it after one signs the severance and waiver docs or is it the first of the next month after one stops working.

I would assume that if it’s after severance papers are processed then the lump sum would accrue more months and would be higher assuming interest rates stay same.

Thank you very much for information on WARN Act and your recommendation.

The WARN and any redeployment periods do overlap. When the 60 days are up and you are without a Chevron job, you are history. You will then be a retiree.

This period overlaps with redeployment, right?

It should also be emphasized that not all employees will be asked or required to come into the office during the WARN period of 60 days. Not all BU’s and workgroups will treat all employees the same. Some employees will be sent home to do nothing for those 69 days. If you think this could apply to you, start gathering your important information and documents now, we’ll ahead of any announcement of being potentially laid off and keep that information fresh, i.e., your online or PDF paycheck statements. If you happen to be sent home during the WARN period, the company may not allow you to take your company laptop, rendering you dead in the water as far as doing last minute info gathering. Think ahead. The company will not inform you of everything.

@fwv, everyone who requests EOI and will be laid off and granted voluntary severance goes through the WARN process. You will get your regular pay and benefits throughout this period. This is the time to sew up all untied ends while you are still an active employee. When the WARN period is up, Chevron will deactivate your badge and email address. You won’t be able to get into areas of information online that are only accessible to employees. Once the WARN period expires, you are no longer an active employee and are now eligible for the severance payment and the other benefits Chevron has offered you as a laid off employee. Start gathering your important information now, although 60 days still gives you ample time to act.

Great post on WARN act. Thank you. One more question, if I elect EOI, will I get 2 months in WARN act or it only applies to people Left Standing or laid off. Thanks in advance.

Great post, very helpful.

The WARN Act protects employees who are designated to be laid-off from being tossed out before a certain timeframe has elapsed. The Act implies just that, a warning. The time frame in the WARN period depends on the total number of employees who are expected to be laid-off at a company in a State, not nationwide. If you are left standing and told you will be laid-off, your regular salary and benefits will continue unfettered for the number of days in the WARN period. The company with either tell you to spend your paid time at home for the duration or allow you to come to work. Sometimes it’s your choice. During this period, the company will allow you all the time you need to look for work, utilize company-paid third party consultants to help you with resume writing and job search help. After the WARN period has expired, you are officially laid off and off the payroll. Your severance and waiver papers will be prepared and mailed to you with a week. You will receive your last payroll check including payment for any unused vacation you have accrued. The company will transfer your medical insurance to COBRA for 6 months. This is handled by ADP, a third party company out of Alpharetta, GA. I would advise you to cancel any benefits you know you’ll not want after leaving Chevron, like life insurance, etc. Do this while in the WARN period. Once you leave Chevron, you’ll lose certain access to the Benefits Connection employee website. Chevron HR will not want to speak to you about certain benefits you are looking to change or eliminate, referring you to ADP instead. Lines at ADP will have long wait times because of the mass layoffs at Chevron and elsewhere in the country. Start backing up PDF copies of your paycheck stubs for 3 years from the HR website. Once you are gone, you will lose access to this info permanently. When applying for Unemployment benefits, this information will come in very handy. Backup the most recent PDF copy of the Chevron Retirement Plan SPD before you leave the company. You should still have access to this document on the retiree website, but download a copy for yourself now, while you can. After signing the severance and waiver docs, you will get paid your severance by check, not direct deposit. Chevron eliminates your banking info after you are terminated. The check will arrive to your home address on file with one to two payroll periods after they have received the signed waiver documents back and have had about 1 week to process them. Be patient. Chevron will allow you to apply for unemployment benefits without push back. If you were laid off, the reason they submit to your State is laid off for lack of work. The severance you will be receiving is a single payment severance. This does not disqualify you to receive unemployment benefits immediately. Make sure you let your State Unemployment Office knows the severance is a single lump sum payment. If they made to understand the severance is being paid over time in periodic payments, you will not be able to start your benefits right away. Think about all your questions now, secure any important documents you might need now, start thinking of dropping your life insurance and any membership fees or charity donations you no longer want to continue within the WARN period. One last thing to consider within this period is dropping your 401k contributions to 2%. You will still get your full company match, but when your severance is paid out, they will only take 2% out toward your ESIP, not any more which you had designated. Remember that your severance check will have Federal taxes deducted at 22%, along with any applicable State income taxes, social security and medicate taxes. Good luck to all. Better to be prepared than sorry.

I heard they will add 8 weeks pay to address the required Warn notification. Not as part of severance but to address the law. Has anyone else heard that?

6 weeks redeployment. Transition out of your assignments, post for other jobs inside and out, training etc. Its really just paid time off.