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Value of employee benefit?

San Diego, CA |

Suppose a publicly traded company agrees to settle for 1 yr salary what percentage of the salary is for benefit? What benefits can be included? Hypothetically if the salary is $100k, employer provides medical, vacation, 401k matching contribution, what would be the amount of the benefit?

Attorney Answers 4


It is impossible to know without many more details. Usually publicly traded companies have already figured out those numbers based on a percentage of the wages paid. Perhaps a call to HR could get you that information. I have seen benefits being worth from about an additional10% to as much as an additional 35% of the salary paid.

Ultimately, the number will be negotiated. Good luck to you.

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A forensic accountant who understands employment law can also do this analysis. Or, there is a program called wrongful termination economist that you can buy.

David Mallen

David A. Mallen offers answers on Avvo for general information only. This offer of free, general answers is not intended to create an attorney-client relationship. If you need specific advice regarding your legal question, you should consult an attorney confidentially. Many experienced California labor and employment attorneys, including David A. Mallen offer no-risk legal consultations to employers and employees at no charge. David A. Mallen is licensed to practice law before all state and federal courts in California, as well as the California Labor Commissioner and the California Unemployment Insurance Appeals Board. Failure to take legal action within the time periods prescribed by law could result in the loss of important legal rights and remedies.

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You may want to consult with an employment attorney to negotiate the terms of your separation agreement with your employer.

If this answer was helpful, please mark it as helpful or as a best answer. This answer is for general education purposes only. It neither creates an attorney-client relationship nor provides legal guidance or advice. The answer is based on the limited information provided and the answer might be different had additional information been provided. You should consult an attorney.

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If this is a "severance" amount or a settlement of an employment claim (i.e. wrongful termination, breach of contract, etc.) I am wondering if you are asking about tax implications of receiving such amount. Generally as part of any settlement a Release Agreement is worked out which protects both the expectations of the employer and ex-employee. (confidentiality, employment references, tax tratment, etc.) It is not atypical to include a provision to provide for "characterization" of the settlement payment. Typically, this includes whether all or some of the sum will be taxable or not and sets out the reporting issues. Although the taxing authorities are not bound by the parties agreement, a well documented recital may be given weight in respecting such tax characterization. If you are represented by counsel, question them on this issue. If not, you may wish to consult with an experienced attorney who can help you "document" your expectations and hopefully prevent surprises that may fall out in the future.

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