MYTHS
OF EMPLOYMENT LAW
MYTH:
YOU DO NOT HAVE TO PAY OVERTIME TO SALARIED EMPLOYEES.
Reality:
Only salaried, executive, administrative or professional employees who
exercise substantial independent judgment or supervise others are generally
"exempt employees" under the Wage and Hour Law (commissioned employees
are also exempt).
MYTH:
YOU HAVE TO GIVE A TERMINATED EMPLOYEE TWO WEEKS= NOTICE OR TWO WEEKS SEVERANCE PAY.
Reality:
Severance pay is required only if it is provided by the employer=s
severance pay policy or practice.
MYTH:
THERE=S
NO REQUIREMENT FOR EMPLOYERS WITH FEWER THAN 20 EMPLOYEES TO PROVIDE
"COBRA" TYPE GROUP HEALTH CONTINUATION COVERAGE TO TERMINATED
EMPLOYEES.
Reality:
In Illinois, employee paid continuation coverage is required under all
group health plans for eligible employees (those covered for three months prior
to termination of employment), and such coverage can be required for up to ten
years in the case of a 55-year-old divorced or widowed spouse.
MYTH:
EMPLOYERS CAN TERMINATE EMPLOYEES ONLY IF THEIR PERFORMANCE IS
UNSATISFACTORY OR FOR OTHER GOOD CAUSE.
Reality:
Illinois is an "at-will" employment state which recognizes that
employees can be terminated at any time for any reason unless there is a
contrary agreement with the employer or the employee is being subjected to
prohibited discrimination on the basis of age, sex, race, religion or in
retaliation for protected conduct (union organization,
"whistle-blowing," etc.).
MYTH:
AN EMPLOYER SHOULD NEVER ASK AN EMPLOYEE TO SIGN A RELEASE UPON
TERMINATION OF EMPLOYMENT.
Reality:
Employers should always consider requesting a terminating employee to
sign a release and should consider paying extra severance or other amounts to
make the release binding on the employee. (NOTE: Releases that cover age discrimination claims must meet
specific requirements as to waiting period, revocation period and language
advising employee to seek legal counsel.)
Andrew
S. Williams
Aronberg Goldgehn Davis & Garmisa
One IBM Plaza, Suite 3000
Chicago, Illinois 60611
312/755-3145
awilliams@agdglaw.com
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