Firm’s Intentions Key to Ex-Worker’s Benefits

Q: I was laid off just after four years with a large accounting firm. After five years, I would have been eligible for retirement benefits there.

Since I was laid off rather than quitting, would I be eligible for any compensation?

--K.M., Azusa

A: You would not be entitled to compensation unless you are able to prove that you were laid off to prevent you from being eligible for retirement benefits.

You must prove that your employer acted specifically to prevent you from becoming vested. You do not need to show that was the only reason for your layoff--merely that it was a motivating factor.

Unfortunately, the fact that you were close to vesting does not necessarily prove your case, nor does the fact that your former employer may have reduced its expenses as a result of laying you off.

The easiest way of proving your case would be to show that your employer had a practice of discharging employees shortly before they would have become eligible for retirement benefits.

--Kirk F. Maldonado

Employee benefits attorney

Riordan & McKinzie