CALIFORNIA FAMILY LAW
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Employment Benefits-Other
......Termination/Severance Benefits
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Summary of Law: Characterization of termination benefits.
Termination benefit contained in employment agreement but received after separation is partially c/p.
Where a non-compete clause is narrow and does not substantially interfere with the employee's ability to find employment, its value may be de minimis in relation to the rest of the agreement.
Severance payments resulting from company’s decision to avoid potential litigation related to postseparation termination of employee are s/p.
Severance pay s/p, even when determined by longevity.
Contractual severance pay found to be c/p.
Military separation pay is s/p, subject to future c/p interest if H reenlists and later earns longevity pension.
Termination pay received after separation is s/p.
Layoff benefit received after separation is s/p.
Discussion of early voluntary separation payments or benefits.