Can my former employer who is paying me severance find out if I get another job?

I signed a 1-year severance agreement that says if I become employed before the severance period is up, then my future severance payments will stop. Can my former employer (financial co.) really find out if I get a job, especially if I have no intentions of working in this same field. Do they routinely run your SSN? Legally, I know it's wrong, but since my severance is taxed at a much higher rate than my paycheck used to be, I'm finding it harder and harder to make ends meet and would love to find a part-time job for extra income.

Ed Atun

I don't think they have any way of finding out your employment status unless you tell you. You did promise to tell them... it was in the fine print..

Jay

If that was the agreement, then you need to abide by it. While they are unlikely to do anything active to check, if someone sees you working elsewhere or a current employee tattles on you, you could end up losing the payments. And, in some cases, get sued for fraud.

What you have, however, is a situation where the employer knew they had you and made you sign an unfair severance agreement. While employers aren't required to offer severance, many do so because they want to avoid lawsuits, employees badmouthing the company, etc.

In some cases, yes, they require that you not get another job for a certain period of time (typically 3 months maximum) because they don't want employees to "force" getting fired instead of quitting, simply to collect severance. A year is a long time.

I'd suggest that you call your former employer's HR department. Explain that you want to abide by your severance agreement, but need to supplement your income with a job IN AN UNRELATED FIELD. For example, if you were a computer programmer, say that you're going to work at Starbucks. Do not take a job as a programmer or anything in computers.

Keep in mind, though, that you getting a job undermines the other point of severance: it's to tide you over while you get another job. If you can get another job, then you really don't need the money. At least, that's the theory. But that's why you need to only take a part time job and one that pays relatively low wages.

They may say "no," but it can't hurt to ask. At worse, it puts them on notice that you're looking for a job. But that's a risk worth it if it could lead to them agreeing to something that's in your favor.

Judy

They can't "run your ss#" and find out. But there are lots of other ways they could find out, one being that someone who knows you and knows you are working could mention it. You are playing with fire if you try to cheat on this. Since you signed the agreement, you could end up having to pay them back anything you collected contrary to the agreement - and could end up paying lawyers and court costs too.

The severance would be taxed the same as your paycheck. If more is being withheld, you'll get any extra refunded when you file your tax return.

Good luck. But please, for your own sake, play it straight, or you're digging yourself an even deeper hole than the one you are already in.

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