If you’ve been fired and receive severance pay, can you still get
paid for back wages?
Three judges in a Mississippi
wage and hour case concluded “yes.” Why? Because severance is not the same as
wages. Severance is pay given to an employee that is fired and is considered
“additional pay” on top of wages. In a Mississippi case, a
woman – Karen Martin – was fired from her job with PepsiAmerica
and was offered a severance package with benefits. The package came with
a hitch – in order to get severance pay, Martin had to agree not
to sue the company based on its firing her or any other actions that occurred
during her employment. Martin agreed and received the severance money.
After later finding out that Pepsi owed her
back wages under Federal labor law for