Terminations and Employee Types
Bambee helps manage employee dismissals across all industries and employee types. We’ll make sure you have all the necessary documents and are compliant with HR regulations for circumstance, so you don’t make mistakes that result in expensive lawsuits.
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Job Loss Regulations
Types of Termination
There are 5 main categories of termination:
Resignation refers to a termination decided upon by an employee, who for any reason determines they want to end their employment agreement with a given organization.
End of Temporary Employment
When a fixed term of temporary employment ends, the contracted temp leaves their role unless they are asked to join the organization permanently.
Employees retire from employment when they reach an age at which they are ready to elave the workforce permanently.
Technically considered voluntary resignation, job abandonment occurs when an employee does not show up for scheduled working hours for a number of consecutive days. In most states, 3 consecutive days of unexcused absences is considered job abandonment.
Involuntary termination can include layoffs, closure of business, or individual termination as a result of unsatisfactory performance.
Am I at risk of wrongful termination?
Involuntary terminations are an unfortunate aspect of running a business, and can sometimes bring the risk of a wrongful termination claim upon the business owner. You may be at risk if:
- Your reasons for terminating are prohibited by law, such as a discrimination based termination
- Your reasons for terminating violated an employee's rights, for example, terminating an employee for reporting a workplace violation
- You terminated an employee on leave in accordance with the Family and Medical Leave Act.
If you think an employee has made or will make a wrongful termination claim against you or your business, contact us immediately for assistance in avoiding an expensive lawsuit that could result in the loss of your business.
Unemployment Benefits & Continued Coverage
Workers who become unemployed through no personal fault, such as through layoffs or a company decision that does not reflect poor performance, may be eligible for temporary financial assistance in the form of unemployment benefits. Guidelines for eligibility and coverage are determined by state regulations.
If a former employee can prove their termination occurred through no fault of their own, they can claim unemployment benefits. These benefits are financed by the federal and state unemployment taxes paid by business owners. Your tax rate is determined by the number of former employees who successfully collect unemployment benefits after termination from your organization, which is why it is in your interest to keep this number as low as possible.
Terminated employees can typically claim unemployment benefits if:
- They have been laid off
- A change in the location of your office substantially changes an employee’s commute
- Workplace safety violations have been noted and not corrected
- Their duties have changed in a way that interferes with their religious beliefs
- Their hours or wages have been reduced by 25% or more
Health Care Continuation
In most cases, terminated employees are eligible to opt into continued healthcare coverage after the end of employment for a limited term under the following acts:
The Consolidated Omnibus Budget Reconciliation Act (COBRA) offers employees and their families the option to continue receiving health coverage for a limited time after job loss by paying the full insurance premium up to 102% of the cost to the plan. Upon termination, employee will receive notice from their employer as well as their insurance company with instructions and guidelines around extended coverage.
The Health Insurance Portability and Accountability Act (HIPAA) stipulates protections for coverage of beneficiaries under group health plans. These include limiting exclusions of participants with preexisting conditions and prohibiting health-based discrimination. HIPAA may also grant the right to purchase individual coverage at the termination of a participant’s COBRA coverage.
If you think an employee has made or will make a wrongful unemployment claim after leaving your business, contact us immediately for assistance in avoiding an expensive lawsuit that could result in the loss of your business.
Equal Employment Opportunity (EEO)
Equal employment opportunity laws prohibit workplace discrimination. This includes limited opportunities or other unfair treatment based upon an employee’s:
- Ethnicity, Country of Origin, Color, Race, Religion, Sex
- Veteran status
Employees who report a violation of EEO may be granted the right to sue the offending organization by the Equal Opportunity Employment Commission.
If you think an employee has made or will make a wrongful discrimination claim after ending employment with your organization, contact us immediately for assistance in avoiding an expensive lawsuit that could result in the loss of your business.
Your business may be staffed by multiple employee types, and each comes with its own set of regulations around HR compliance and termination that must be followed to protect against potential legal retribution. Bambee can help make your business compliant with any combination of employee types.
- An employee that works on average 35 hours per week or more for at least one calendar month, and is expected to remain with an organization for at least one year, is typically considered full-time. The exact terms of full-time employment is determined by each individual business, but generally full-time status grants the maximum available benefits at a given organization.
- An employee that works on average 35 hours per week or less for at least one calendar month is typically considered part-time. The exact terms of part-time employment is determined by each individual business, but generally part-time status limits or denies access to benefits at a given organization.
- Workers are classified as independent contractors when their work for a company is temporary, they provide their own materials, and their hours do not necessarily reflect those of their full-time co-workers. When a worker is an independent contractor, their employer is not responsible for paying unemployment or social security tax, or workers compensation premiums on their behalf.
- Workers with an employment expiration date set at the time of hire are classified as temporary employees. Improper classification of temporary employees can result in expensive lawsuits.
- At Will
- At will employment describes the agreement between employer and employee that states either party can end employment at any time for any reason. Dismissals classified as wrongful termination are the exception to legalities of at-will employment termination.
- Leased employment is similar to temporary employment, though the temporary employee in this case is paid and managed by a separate leasing company. If an employer is considered to be a joint employer with the leasing company they lease a worker from, they could be liable for an claim or complaint made by the worker against the leaser.
- Exempt employees are not eligible to receive overtime pay for hours work over their typical overtime hours. To qualify as exempt, as an employee must be paid a set salary of at least $455/week, be performing executive, professional, or administrative duties, or be designated as computer professionals or outside sales associates, and not be performing non-exempt duties for more than half their working hours. Failure to comply with classify exempt employees correctly can result in employers being forced to provide up to 3 years of back-pay for employees seeking recovered wages.
- Non-exempt employees must be compensated time and one half their normal rate of pay for each hour of overtime worked. Workers are typically classified as non-exempt if they are blue-collar or semi-skilled non-managers.
- Interns are student workers that work to gain experience and knowledge to later put to use in their careers. There are two major types of interns: those working to gain work experience, and those doing research for compilation in a report or dissertation. Interns can be unpaid and compensated in education credits, or paid a fixed stipend amount.
- Seasonal employees are hired during a business’s busy seasons, and typically end employment with the end of the season. An employee is generally considered seasonal if their set period of employment is less than six months. Improper classification of seasonal employees can result in expensive lawsuits.
- Remote employees work outside the office for the majority of their hours. They can be full-time or contractors depending on the specifics of their hiring agreement.
- Term employment refers to an agreement between employer and employee for work to be performed during a fixed term with a predetermined end date. Incorrect verbiage in a term employment contract, or improper filing of employee paperwork can result in an employee rights violation lawsuit.
- When an employee agrees to work a different position for a set period of time and then return to their original role, this agreement is known as detail employment. Incorrect verbiage in a detail contract, or improper filing of employee paperwork can result in an employee rights violation lawsuit.