What are the rights of employees and employers in Georgia when it comes to termination and severance pay?
In Georgia, both employees and employers have specific rights when it comes to termination and severance pay.
Termination of Employees:
Georgia is an “at-will” employment state, which means that in the absence of an employment contract, an employer can terminate an employee for any reason, or no reason at all, provided that the termination did not violate any federal or state laws. However, employers cannot terminate employees if the termination is based on discrimination on the basis of race, color, national origin, sex, religion, pregnancy, age (over 40) or disability, or any other protected status under federal, state, or local law. Employers also cannot terminate employees for “whistleblowing” or reporting illegal activities.
Severance Pay:
There is no federal or state law that requires employers to offer severance pay to departing employees in Georgia, unless there was a pre-existing employment agreement or an employer policy to offer such. If an employer chooses to offer severance pay, it must comply with the terms of such agreement or policy. Employers may also offer severance pay in exchange for the employee's agreement not to file a lawsuit against the employer, for any reason. If an employer does offer severance pay, it must be paid in accordance with Georgia law and any previously established policy.
Exceptions and Limitations:
There are some potential limitations and exceptions to the rights of employees and employers in Georgia when it comes to termination and severance pay. If an employee is a member of a union, their rights to termination and severance pay may differ, depending on the union contract. Also, if an employee has an employment contract or a collective bargaining agreement, specific provisions related to termination and severance pay may apply. Further, employees may be bound by non-compete clauses that could limit their opportunities to find alternative employment after termination. Employers may have to abide by obligations under federal/state law, including Worker’s Compensation and Family and Medical Leave Act requirements, as related to employee terminations and severance pay.
Suggestions for Further Action:
If an employee believes that they were terminated in violation of the law, such as on the basis of discrimination or “whistleblowing”, they may wish to consult with an attorney and file a complaint with the Equal Employment Opportunity Commission or state regulatory agency. If an employer is unsure if their termination and severance pay policies conform to legal requirements, they may wish to consult with an attorney to ensure they are in compliance with applicable laws and regulations.