If a severance is part of a settlement arrangement that involves the OWBPA and its 7-day revocation period, be careful in determining the effective termination date and the implications of what might be called a suspended state of employment. Here are some particulars to take into account:
– Date of eligibility for certain benefits (e.g., unemployment, COBRA);
– Date when a former employer is obligated, under the agreement, to provide the DUA information consistent with the parties’ terms;
– Classification of the revocation period (interim?) and definition of corresponding employer/employee status and obligations (e.g., whether employee is expected to continue working; if not, will the time be paid or unpaid if s/he revokes?);
– Alternative outcomes in the event the right to revoke is exercised or not (i.e., payroll, workers’ compensation implications);
– Overlap of employee medical leave and proscribed return-to-work date with revocation period and/or effective termination date, as well as effect on medical benefits; and
– Timing of issuance of final paycheck.
Most of these issues can be addressed by the payroll and HR departments by both employer and employee. And for employers and attorneys, more likely than not, there’ll be just one learning curve in developing an approach that can be used in future matters.