How is severance pay calculated
and when is it due?
The Fair Labor Standards Act (FLSA) requires payment of at least the
federal minimum wage for all hours worked
in a workweek and time and one-half an employee's regular rate for time worked
over 40 hours in a workweek. There is no requirement in the FLSA for severance
pay. Severance pay is a matter of agreement between an employer and an employee
(or the employee's representative).
The Employee Benefits Security Administration (EBSA) may be
able to assist an employee who did not receive severance pay required in his or
her employment contract.
|