QUESTION
Legality of restricting an Early Retirement Program to specific departments, groups?
Asked on Mar 13th, 2014 on Labor and Employment - North Carolina
More details to this question:
I work i the marketing department which is going through a reorganization. When the reorganization plans are finalized, i will be offered a separation package. I have just been informed that the R&D Department is offering an Early Retirement package which is better than the one i will be offered from Marketing. I have been told that since i do not work in R&D, i do not qualify for that program. Is that legal to restrict to a specific group?
1 ANSWER
4 Awards
Probably. As long as the basis for benefits is not race, color, sex, national origin, disability or age 40 or older and is just the department you are in, then it is probably lawful. There is a law called ERISA that governs employee benefits plans, but, if your employer was careful, then it could easily avoid any pitfalls under that law.
Answered on Mar 19th, 2014 at 4:12 PM
I am an experienced attorney focusing on employment law in North Carolina and Tennessee. This post/response is not meant to constitute legal advice.