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ScottyMacEsq
ScottyMacEsq, Lawyer
Category: Employment Law
Satisfied Customers: 15941
Experience:  Licensed Texas General Practice Attorney
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I was off this past Friday and have a severance package

Customer Question

I was laid off this past Friday and have a severance package to sign. The key paragraph on pay is as follows below. The normal pay cycle is every two (2) weeks. The understanding is that I will receive a gross total of 14 checks with gross amount of $x,xxx.xx. My question is: Does this paragraph say that?
6. Separation Benefits. In consideration for Employee’s execution and non-revocation of the General Release attached hereto as Exhibit A, and the other duties and obligations set forth in this Agreement, (Company name) agrees to the following:
a. [(Company name) will pay Employee an aggregate cash amount of $x.xxx.xx, less applicable withholdings and deductions, which will be paid in accordance with (Company name)’s ordinary payroll cycle over the 28 week (26 week severance and 2 weeks’ notice in lieu) period following the Effective Date of this Agreement
Submitted: 9 months ago.
Category: Employment Law
Expert:  ScottyMacEsq replied 9 months ago.
Thank you for using JustAnswer. Yes, presumptively this says that. That is, in the absence of a definition or any context, "aggregate cash amount" would mean the entire payment that would be paid out to you (before deductions and before being divided into the bi-weekly paychecks). Now if there's an issue (that the term seems to indicate the amount that is being paid out every couple of weeks rather than the gross amount) and it's not specifically defined in the contract, that would be an ambiguity. In that situation, the rest of the contract would be looked at to see what it means, as well as a general understanding of severance. Severance is seen as income replacement upon separation, and as such it's generally equal to or similar to the pay that was received while working. That context would be important. So if this amount is, say, $2,000, that would probably been interpreted by the courts as $2,000 every pay period, rather than $2,000 gross, because otherwise it would be $2,000 divided by 14 (not even taking into account withholdings and deductions) which is around $142 per pay period, and a court would be right in saying that this contract clearly does not mean that. So it would resolve the ambiguity in light of the surrounding context and what was otherwise clearly intended. Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for the time and effort that I spent on this answer unless and until you rate it positively (3 or more stars). Thank you, ***** ***** luck to you!
Expert:  ScottyMacEsq replied 9 months ago.
Did you have any other questions before you rate this answer?
Expert:  ScottyMacEsq replied 9 months ago.
Are you there? Please note that I am still here, awaiting your response or rating... (please note that rating closes this question out, so if there's nothing else, please rate it so that I can assist other customers that are waiting for answers to their questions)
Expert:  ScottyMacEsq replied 9 months ago.
Should I continue to await your response, or may I assist the other customers that are waiting?
Expert:  ScottyMacEsq replied 9 months ago.
Hello?
Expert:  ScottyMacEsq replied 9 months ago.
My apologies, but I must assist the other customers that are waiting. If there's nothing else, please rate this answer. Please note that I don't get any credit for the time (~55 MINUTES) and effort that I spent on this answer unless and until you rate it 3 or more stars (good or better) AND press the "submit" button, if applicable. If you feel that I have gone above and beyond in this answer (my average answer is about 10 minutes) bonuses are greatly appreciated. Thank you, ***** ***** luck to you!▼ RATING REQUIRED! ▼ Please don't forget to Rate my service positively. It's only after you rate that I am credited.
Expert:  ScottyMacEsq replied 9 months ago.
I see that you have not responded in some time. Please note that this question is still open until you rate it. I believe that I have answered your question, but if you have any other questions, please let me know.If not, and you have not yet, please rate my answer. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, ***** ***** good luck to you!

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