Does anyone know how severance packages are calculated? Average of hours worked for the last year or over all the years an associate has worked? Please, facts not guessing. Thanks
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The most recent poster is correct, PTO does count. I was on a 2 week vacation when I was informed by CM about restructure. Termination was 6 weeks later. My severance was 1-40 hour week for each year of service. I made sure I worked a full 40 each week.
You're wrong about PTO not counting toward your weekly average. I too am an associate that recently took severance during December layoffs. Our club had only been scheduling FT 37.50 most of 2018. I put 2.50 in every week that happened to bring my weekly total to 40. Yes, you deplete some of your PTO in regards to final PTO payout on last check but by doing this my weekly average for severance calculations was 40hr per week. Go read the actual severance information on the wire. It states your weekly average is based using both hrs worked and earned time. Which is what PTO is, earned time.
Do not use PTO hours. That will not work. I know someone who used a lot of PTO right before he was offered severance. He ended up screwing himself, and got less hours of pay due to that.
Taking extra PTO DOES NOT increase your average worked hours per week. Taking PTO will not increase your severance, which is calculated on worked hours not PTO hours. If you took a vacation in the past 12 weeks you will have 0 hours for that week.
You can take an extra 12 hours of pto each week over 40 hours so you lower your lump sum pto payout and it increases your average hours worked the last 6 weeks you are employed.
Your PTO time will not count. Your check will be one weeks pay for years of service with only the last 12 weeks of worked time. I was the accounting lead that was severanced. Oh and it's taxed as a bonus. 40+ in taxes.
One week for every full year of service. So if you have taken LOA, they subtract that. For me, I would be down a whole year since I have taken about 3 months of LOA.
Thank you :)
And the hours you work these last 5-6 weeks till 3/29/19 factor into the 12 weeks. Your severance estimate will show a weekly average based on the 12 weeks prior to job elimination. But you can impact or increase your average by submitting PTO to raise your weekly average to 40 if full timers are bring scheduled 37.50 or less.
Its based on the last 12 weeks that you worked and you get 1 week for every year of service.