What are the laws governing the payment of severance pay?

In Florida, the law governing the payment of severance pay is covered by the Florida Severance Pay Act. This Act holds that any employer who has employed an employee for at least one year, and that employee was discharged without cause, must pay the employee a severance pay equal to one week of pay for each year of service, up to a maximum of 26 weeks. The Florida Severance Pay Act also stipulates that employers must provide the employee with notice of the severance pay due, and pay it within two weeks of the employee’s last day of employment. In addition, this Act states that severance pay will not be considered income for the employee, and it is not subject to unemployment insurance or other payroll taxes. Finally, the Florida Severance Pay Act provides for circumstances where the employer may not be required to pay severance. These include employee misconduct, such as dishonesty or theft; if the employee voluntarily resigns or is discharged for cause; or if the employee is already eligible for certain benefits such as a pension.

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