Information for Employees Affected by Reduction

As the manager conducting the separation meeting, you should have knowledge of the benefits available to the affected worker.

 

The affected employee may be eligible for unemployment benefits through the Employment Security Department. The affected employee must apply for these benefits online at www.floridajobs.org/unemployment/uc_emp_claims.html.

 

On the UC application for benefits, the affected employee will be asked for the reason for separation from employment.  The affected employee should respond "Reduction in Force," or "Laid Off."

 

The amount of the weekly benefit will depend on the employee's earnings and is determined in compliance with the Unemployment Insurance Code.

 

Depending on the company's contract with the insurance carrier, the affected employee's group insurance coverage may end at midnight on the day of the layoff. The manager should be aware of the policy for insurance coverage and have that information available for the affected worker during the separation meeting.  The affected employee may continue to be covered under the company's medical and dental insurance plans under COBRA.

 

Coverage under COBRA is not automatic.  The affected employee must elect continuation of coverage by completing the appropriate COBRA enrollment forms.  In compliance with COBRA provisions, a letter outlining the affected employee's rights under COBRA and an enrollment form should be provided during the separation meeting.

 

If the affected employee or any of his/her dependents have a medical or dental condition that is currently being treated, that condition may be precluded from coverage under another employer's plan as a pre-existing condition.  If such a condition exists, the affected employee should inquire about his/her new employer's insurance plan's Pre-Existing Conditions Clause.  The affected employee may continue to retain coverage for this condition under the company's plan by maintaining insurance coverage under COBRA until the affected employee or his/her dependent meet the terms of the new employer's Pre-Existing Conditions Clause.

 

Employees who have met the eligibility and vesting requirements for pension and profit sharing plans and/or have contributed to the 401 (K) plan need to complete distribution form(s) in order to receive distributions from the plan(s).  Funds earn interest until they are distributed and will be distributed as soon as possible after the form(s) are returned to the company.

 

Distributions remain tax deferred if "rolled over" to another qualified plan, such as an IRA or an IRS qualified plan offered by a new employer, if the rollover is completed within 60 days of distribution.

Distribution checks will be sent to the employee at his/her home.  Therefore, it is very important that the company have the affected employee's correct address.

W-2 forms will be sent out by the Payroll Department by January 31st of next year.