New Arizona law outlaws double-dipping unemployment benefits

July 09, 2014 0 COMMENTS

by Dinita L. James

A new Arizona law going into effect July 24 means employees who are let go with severance pay won’t be eligible for unemployment benefits right away.

The law adds a new section to Arizona Revised Statutes § 23-621 to define severance pay, a term that was undefined in earlier legislation, which resulted in a laid-off employee of a beverage distributor receiving a year’s salary in addition to unemployment benefits.

The case began when Phoenix beverage distributor Hensley & Company implemented a reduction in force (RIF) in 2011. The company designed the RIF so that all laid-off employees would be paid two weeks of base pay and whatever benefits remained in the month of termination.

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