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Navigating Your Severance Package After a Layoff from Mercury General: What You Need to Know

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Some of the biggest technology industry players have announced mass layoffs in recent months. 

In most cases, companies aren't legally required to pay workers or offer benefits once their employment ends. But they're often motivated to do so to shield themselves from liability and to help defuse any hard feelings by tiding workers over while they search for new opportunities.

Many feel that severance is a very formal version of 'Don't go away mad, just go away others feel it is a reward for being loyal

You just got laid off from Mercury General. What should you do next?

Many companies are considering how much they have to give you so that you go quietly because when a person is laid off, this has an adverse effect on them. They try to soften that blow a little,

While the amount of severance a laid-off worker gets varies widely depending on the industry, company and the employee's tenure, exit packages tend to have some standard components.

Let's take a look at what to expect from a severance package when being laid off from Mercury General.

What's in a severance package? 

The most variable part of a severance agreement is the amount and duration of extra pay and benefits a Mercury General worker receives. 

Severance packages can include a mix of the following:

  • Financial compensation

  • Extension of health care and other benefits

  • A portion of one's bonus

  • Accelerated vesting of stock

  • Outplacement assistance or career coaching

  • ‘We are seeing commonalities in things people are getting, but not the durations   We'll see the extension of benefits beyond the termination date, but as far as what those values are it depends on the company. There is no standard.'

If your job loss is part of a mass layoff, the company is required by federal law to provide at least 60 days notice under the  Worker Adjustment and Retraining Notification (WARN) Act . Employees are entitled to full pay during the notification period; but in most other cases based on federal and state law, companies don't have to pay severance at all.

They can give nothing.

How is severance calculated?

Severance packages such as a week's worth of pay per year of service while other companies may pay four weeks for every year of employment. That's the formula — it's the number of weeks you get per year, For example, a banking or financial services company can be expected to offer a couple of weeks of severance pay per year of service,

Don't count on a bonus

A bonus that's not part of a worker's base salary can also be very valuable but isn't always included in severance packages. In California, performance-based bonuses are treated like wages — workers are legally entitled to earned bonuses when they are terminated. Other states have fewer protections in place. 'With bonuses, generally speaking, unless you're almost done with your planned year, I don't see people always giving a pro-rated portion. You generally lose that in its entirety,

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There's room to negotiate, however, depending on how the bonus is earned. 'If the bonus is based on objective metrics that have been met, you can argue they it has been earned up to that point, and it may need to be paid off based on the wording of the bonus commission,

Accelerated vesting

For tech workers, compensation can be complex, their severance packages typically are too. From small tech startups to giants like Google, stock in a company can be more valuable to a worker than salary.

'A lot of tech workers are really working for equity, stock options or equity grants, and these things vest over time,  'This is how most people who work for tech companies really make money. Whether you work for Google or a smaller tech company, you want a piece of the pie.'

In the case of a layoff, companies won't automatically accelerate the vesting of stock, in which case it disappears. But some will, including some of the large tech companies cutting their headcounts recently.

What did Google workers get?

Ex-Google employees bemoaned the way they were notified of layoff. Here are the latest tech layoffs as the industry shudders. When  Google  announced earlier this month that it would dismiss 12,000 employees, CEO Sundar Pichai told U.S. workers they would be paid during the 60-day notification period required under the WARN act.

The company checked other boxes, too.

Workers get a minimum of 16 weeks' salary, plus two weeks for every additional year at Google, as well as accelerated stock vesting. The company said it would also pay out workers' bonuses and unused vacation days. It also said it is extending workers health care benefits and offering job placement services for six months.

Microsoft , which on January 18 said it would cut 10,000 jobs, said benefits-eligible U.S. employees would be notified 60 days before their termination ends and receive an unspecified amount of 'above-market' severance pay, as well as six months of health care benefits, career transition assistance and stock vesting.

Can you negotiate?

In some cases, it can't hurt to ask for a better exit package if you're unhappy with the offer, experts say. Keep in mind, though, that larger companies implementing mass layoffs are unlikely to make concessions on an individual basis.

Generally speaking, for a mass layoff at these huge tech companies, the exceptions are going to be few and far between because otherwise it opens the floodgates. Smaller companies are not setting such a huge precedent necessarily, so they might have more flexibility.

Larger companies are not likely to budge.

If your company decided to lay off 12,000 people, if they make a change for one guy, everyone is going to come clamoring but if it's just you getting laid off from Mercury General, it is often worth trying to negotiate a better exit package, especially for a long-tenured employee.

Leverage goodwill you've earned over the course of your time at Mercury General.

What type of retirement savings plan does Mercury General offer to its employees?

Mercury General offers a 401(k) retirement savings plan to its employees.

Is the 401(k) plan at Mercury General available to all employees?

Yes, the 401(k) plan at Mercury General is available to all eligible employees.

What is the employer match policy for the 401(k) plan at Mercury General?

Mercury General provides a matching contribution to the 401(k) plan, typically matching a percentage of employee contributions, up to a certain limit.

How can employees at Mercury General enroll in the 401(k) plan?

Employees at Mercury General can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What are the contribution limits for the 401(k) plan at Mercury General?

The contribution limits for the 401(k) plan at Mercury General follow the IRS guidelines, which are updated annually.

Does Mercury General offer a Roth 401(k) option?

Yes, Mercury General offers a Roth 401(k) option, allowing employees to contribute after-tax dollars.

Can employees at Mercury General take loans against their 401(k) savings?

Yes, Mercury General allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

What investment options are available in the Mercury General 401(k) plan?

The Mercury General 401(k) plan includes a variety of investment options, such as mutual funds, stocks, and bonds.

How often can employees at Mercury General change their 401(k) contribution amounts?

Employees at Mercury General can change their 401(k) contribution amounts at any time, subject to plan rules.

What happens to my 401(k) balance if I leave Mercury General?

If you leave Mercury General, you can choose to roll over your 401(k) balance to another retirement account, cash it out, or leave it in the plan if eligible.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Pension Plan Name: Mercury General does not offer a traditional defined benefit pension plan. The company primarily focuses on offering a 401(k) plan to its employees. 401(k) Plan Name: Mercury General Corporation 401(k) Plan Eligibility: Employees are eligible to participate in the Mercury General Corporation 401(k) Plan after completing 30 days of service. The plan is available to full-time employees. Company Match: Mercury General provides a matching contribution to the 401(k) plan, though specifics about the match percentage may vary based on the company’s policies and plan documents.
Restructuring and Layoffs: In 2023, Mercury General announced a significant restructuring plan aimed at streamlining operations and improving efficiency. This move was driven by the need to adapt to changing market conditions and the economic environment. The restructuring included layoffs in several departments, with a focus on reducing operational costs and reallocating resources to more strategic areas. The company's management emphasized that these changes were necessary to enhance competitiveness and long-term sustainability. The impact of these layoffs on employees and the broader organizational structure is a key concern amid current economic uncertainties.
Description: Mercury General's 2022 annual report details the stock options and RSUs offered to employees. Stock options are generally available to executives and key employees, while RSUs may be granted to a broader range of employees based on performance.
Benefits Overview: Offers a comprehensive benefits package including medical, dental, and vision insurance. They provide health savings accounts (HSAs), flexible spending accounts (FSAs), and wellness programs. Medical Plans: Includes PPO and HMO plans. Employees can choose between different levels of coverage based on their needs. Wellness Programs: Includes access to fitness resources, mental health support, and preventive care programs.
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For more information you can reach the plan administrator for Mercury General at , ; or by calling them at .

https://www.pbgc.gov/

*Please see disclaimer for more information

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