AboutTimmy Chou Expertise I am a experienced Mediator and a partner in a management consulting firm. As a mediator I work as a third-party neutral and specialize in partnership/shareholder disputes, management/labor issues, company culture difficulties, and family-owned business problems. I can help describe why alternative dispute resolution may be a good choice for you. As an experienced management consultant I may be able to offer creative ideas to help resolve your organizational and business problems and disputes. "If you say conflict, I say opportunity".
I recently resigned from a company and gave written two week notice. The
reason for my resignation was I accepted another position that my former
company deemed "competitive". They asked me to leave at the end of the
week (3 days) as opposed to the end of the two week notice. I received my
final paycheck, and it only covers payment through the three extra days, not
the two week notice. Also, I met with my former boss on the fourth day to
transition projects, and have not received payment for that day.
Two other issues: 1) I have $3500 in outstanding expenses, all submitted and
some as early as 11/05/06, and the company is unresponsive to my requests
for updates on payment. 2) I emailed the HR person Monday 1/29 to inquire
about COBRA coverage, which I have not received information about and need
on 2/1. There has been no answer.
I am at my wit's end with this company. Clearly they are not happy with my
departure, and they are trying to make things difficult for me. It is a small
industry and I don't want to cause undo chaos, but I also want payment due
to me.
Please advise.
Answer Thank you for your question!
Mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.
The case you describe here is far too typical and can be considered a "classic" workplace dispute presentation. I am not a lawyer and cannot mediate this with you alone but I can respond to your question from my business consulting experience.
Note that this issue may have legal ramifications and you may wish to consult a labor attorney.
It may be useful for you to consider that right and wrong are not always the most useful places to begin in dealing with these sorts of problems. There is always a cost to exacting justice and the costs can be quite high. Remember that your person-hood and your work are not even remotely related and that the most successful people at work are
often the least successful with others since they have often become successful on the bodies of those they have slain.
First, it is common to merely let you go and not let you serve out your two weeks. They do not have to pay you for the two weeks.
You are owed compensation for day #4, however.
You are also owed the $3500. This should have been paid on the day of your separation.
Here is how to proceed.
You need to send a registered letter to the company. It should say:
1. You have performed services on day four for X hours and you are due compensation at your usual rate. This is due at separation and you demand this in full now.
2. You have not received reimbursement for the expenses you have incurred. You have submitted them properly. This reimbursement is due at separation and you demand this in full now.
If payment in full in not received by [date] (within a week), you will file a claim with your state's labor board and with the US Dept. of Labor.
Be sure to note at the bottom of the letter you have copied
(cc)
Your State Labor Board
you local office US Dept of Labor
Your local Newspaper
the Better Business Bureau
It is important that the company understand that you are a serious threat to them and can cause them considerable grief.
As far as the COBRA issue goes, you should call the insurance agent and tell him you are going on COBRA and tell him you want to get the forms required to accomplish this right away and determine your premium. Be sure you find out what the premium amount is, when the premium is due and you make your payment to the company on time and by registered mail, writing on the check that it is for COBRA premium. Do not make any payment late.
The insurance company is also required by law to cooperate with you on this matter and that is where you should focus your efforts. The Insurance company will pressure the company in your behalf.
If the company is convinced that: 1) you are not going away; 2) you are going to raise hell and tell everyone; and 3) it will likely cost more money to deal with you than it would to settle with you; than they will make a business decision and take care of you.
These are some ideas. Feel free to follow up with additional questions.
For your information, the pros and cons of the types of dispute resolution methods follows.
GOOD LUCK!
Arbitration, Mediation, and Litigation
Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system
Benefits of Arbitration:
Confidential, no public record
Limited exchange of documentation, information
Quick, don't have to wait for a court date
Arbitrators have expertise in the subject matter and are trained in conflict resolution
Cheaper than litigation
Preserves business relationships
Negatives of Arbitration
It's a compromise, no 0 winner
Complex arbitration can be costly
If not satisfied, may litigate the arbitration procedure
Poor results with an unskilled arbitrator
Both parties must agree to cooperate in the process
Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.
Benefits of Mediation:
Neutral mediator can objectively suggest alternatives not considered before
Parties are directly engaged in negotiating the settlement
Can be quicker than litigation
Less costly than litigation
Preserves business relationships
85 of American Arbitration Association cases mediated find successful solutions
Negatives of Mediation
may not reach a binding decision
unskilled mediator
Litigation: using the judicial system to resolve disputes
Benefits of litigation:
a clear winner and loser
uses a prescribed set of procedures
more predictable outcomes
is final
Negatives of Litigation:
waiting for court dates can do more harm
usually more expensive than mediation and arbitration
part of the public record
