If you’ve been fired and receive severance pay, can you still get paid for back wages?
Three judges in a Mississippi wage and hour case concluded “yes.” Why? Because severance is not the same as wages. Severance is pay given to an employee that is fired and is considered “additional pay” on top of wages. In a Mississippi case, a woman – Karen Martin – was fired from her job with PepsiAmerica and was offered a severance package with benefits. The package came with a hitch – in order to get severance pay, Martin had to agree not to sue the company based on its firing her or any other actions that occurred during her employment. Martin agreed and received the severance money.