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Disallowing Severance Pay May Violate ERISA

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in Human Resources

Severance plan documents sometimes stipulate that employees who are fired "for cause" are disqualified from benefits. That places a burden on plan administrators to fairly review the facts before making a benefits determination. This includes checking out the employer's policies, procedures, and enforcement. If an employer was lax in any of these areas, and benefits were denied, they may be called on the courtroom carpet for violating the Employee Retirement Income Security Act  (ERISA).

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