Can I Collect Unpaid Interest from a Severance Package in California?

Question from Bill, Can I Collect Unpaid Interest from a Severance Package in California?

Answer from AI:

If you are in California and your former employer has not paid a specific interest in your severance package for 23 years, while paying other interests, you may have grounds to collect the unpaid amount. Here’s a general overview of what you need to know and the steps you might take.

Understanding Severance Packages

A severance package is a set of benefits that an employer provides to an employee upon termination. This can include:

• Payment based on length of service
• Continuation of benefits
• Stock options or other financial interests

In your case, it appears that your severance package included multiple interests, and one of these has not been paid for 23 years.

Contractual Obligations

Since you have a duly executed contract, the terms of the severance package are legally binding. Under California law, contracts are generally enforceable as long as they are clear and both parties have agreed to the terms.

Statute of Limitations

One critical factor to consider is the statute of limitations, which is the time limit for bringing a lawsuit. In California:

• The statute of limitations for written contracts is generally four years (California Code of Civil Procedure Section 337).
• For breach of contract claims, the clock typically starts ticking from the date the breach occurred.

Given that 23 years have passed, the statute of limitations may have expired, potentially barring you from collecting the unpaid interest through a lawsuit. However, there may be exceptions or specific circumstances that could affect this.

Steps to Take

Here are some steps you might consider:

1. Review Your Contract: Carefully read the terms of your severance agreement to understand your rights and the employer’s obligations.
2. Document Everything: Gather all relevant documents, including the contract, payment records, and any correspondence with your former employer.
3. Contact Your Former Employer: Reach out to your former employer to discuss the unpaid interest. They may be willing to resolve the issue without legal action.
4. Consult a Legal Professional: Given the complexity and potential statute of limitations issues, it’s crucial to consult with an attorney who specializes in employment law. They can provide personalized advice and help you understand your options.

Resources

For more information, you can refer to:

• California Code of Civil Procedure Section 337
• California Department of Fair Employment and Housing

When to Seek Legal Advice

Given the potential complexity of your situation, especially with the long time frame involved, it is highly recommended to seek legal advice. An attorney can help you:

• Determine if any exceptions to the statute of limitations apply
• Negotiate with your former employer
• File a lawsuit if necessary

Remember, this information is intended to provide a general understanding and should not be considered legal advice. For personalized guidance, please consult with a qualified legal professional.