|
|
|
chicago home
events calendar
bars & clubs movie clock restaurants specials best of chicago 
art
film and video food and drink music and clubs stage style words sports features |
|
|
 POOR HOUSE The economics of getting laid off
Thanks to the recent swings in our economy, chances are that even if you don't know someone who's been laid off, you know someone who knows someone who has gotten the ax. We've had it good, those of us in our 20s and early 30s. Sure, we've seen a bit of recession -- in the late eighties and that blip of a slowdown in the mid nineties -- but, for the most part, the Clinton boom years propelled many of us into a job market where employment has been easy to find. Maybe not your dream job, but a job nonetheless. And with the Internet swell, that some kind of job has frequently come with some nice bucks. But nothing lasts forever, and, as our economic juggernaut tries to realign itself along more realistic lines, younger people are liable to find themselves, temporarily at least, without a job. So what do you do? If you're like most of us, living from paycheck to paycheck, you can't really afford to be unemployed, so it's always best to know your options: Figure out your situation -- now. If your company's in trouble, you've probably got some idea. Bigger companies regularly find themselves grist for the Internet rumor mills and then there's office gossip, frequently a great way of finding out if you've got two days, or two months. Keep in mind that as soon as things fold up, you're out a number of resources -- no more high-speed Internet connection, free copies or nice laser printers where you can zap off 100 résumés while your boss is out to lunch. Keep your ear to the ground so you know whether you should be leisurely surfing HotJobs.com during a free ten minutes or if it's time to invest a few hours after work each day. Know the law. The nice people at the Illinois Department of Labor will tell you that this is an "at-will" employment state, which means that unless you've got a contract that states otherwise, your employer can terminate you "without advance notice or without giving a reason or an unfair reason for the termination." (This assumes, of course, that you're not being terminated for discriminatory reasons.) The door swings both ways -- it also means you're not legally required to give two weeks notice before quitting-you can just bail. Of course, you're probably not going to get a good reference that way, but it's the law. No more funny money. Young workers are notorious credit abusers and bad, bad savers. Do you actually know how much money it takes for you to get through a month? If you smell impending doom, you'd best be figuring that out -- and it's time to start putting some away. If you've got credit card debt looming and you can't pay it off, now's the time to find the card with the lowest interest rates and start playing the balance transfer game -- understanding that you might only be making the minimum payments for a couple of months. Figure out what it takes to keep your life going at the basic level -- food, rent, payments on pending debt-and save with that in mind. At some point being jobless may require a lifestyle change; best to acknowledge that early and act accordingly. But, hey, my buddy got laid off and he's jaunting all over the place on his severance package... ? While most companies will give you severance -- ranging from two weeks or a month's salary to the entire "package" -- unless you've got a contract that guarantees you severance, don't bank on it. "They're not required to give you anything," notes a local job counselor. "I hear this all the time now where people thought they were going to have a nice severance package to live off of and now they got to find a job -- fast. Give yourself some breathing room and make sure you get anything you can from your company before they go bust." Dust off your human resources guide, if you've got one, and see what it says about this kind of termination. If you've got an HR professional, make an appointment and go over it with them -- make sure you get paid for all your unused vacation/personal days and find out for sure what kind of severance, if any, you'll be getting. "If they don't offer you anything, ask for it," the job counselor says. "They are putting you out of a job, so it's the least they can do." If it is offered, recognize that you've got nothing to lose, and always ask for a better deal. You also want specific, written details. You don't just want a month's salary, you want that, plus extension of whatever health benefits you have -- at their expense, if possible. If not possible, find out about what extending benefits would cost on your own tab, considering that you may well need healthcare while unemployed. And, very important, if you've got a 401K or some other kind of pension plan, find out about rolling it over into another tax-deferred deal like an IRA, so you don't have to withdraw it and take a loss. Also, if you've got employer contributions that require vesting, find out how vested you are and whether you'll get to take all of your money with you when you go. Remember -- it's in your best interest to do all of this as quickly as possible after you're terminated. If you're slow it can delay your benefits or compensation and leave you in a bind just when things are already difficult enough. Last, but not least, score contact info on your co-workers and get a written reference from your employer -- make sure this reference indicates that the reason for your termination was workforce reduction. This way you have something to send out to prospective employers specifically noting that you're out of a job through no fault of your own. Understand unemployment -- as best you can. The Illinois Department of Employment Security (www.ides.state.il.us) administers the unemployment insurance program, which is financed by payroll taxes on employers. And while unemployment insurance is a way to keep you on your feet while you're hunting a new job, it shouldn't be viewed as a twenty-six-week paid vacation -- something that will become abundantly clear when you realize how much crap you have to go through to get this money and how much you actually get. And while it might not seem worth it, remember that you're entitled to these benefits, so you might as well take advantage and get something. It's worth noting from the start that there are no "scheduled" arrival dates for checks and that they "usually" arrive three weeks after the date of your claim -- but no guarantees. You can receive benefits for up to twenty-six weeks and checks go out, usually, every two weeks, providing you're still unemployed. In 2001 the minimum benefit amount is $51 per week and the maximum (for those without dependents) is $315 per week. In order to even qualify you must have worked for an employer subject to the state's unemployment insurance law -- certain types of work aren't covered, so make sure to doublecheck. Also, you must be unemployed through no fault of your own -- so no quitting, striking or getting fired for misconduct or theft. When you file for unemployment you need to realize exactly how your benefits will be figured -- the amount you receive is determined by "the total wages paid to you by each of your employers during your 'base' period." The base period is the first four of the last five quarters -- so if you're filing for unemployment between now and June 30, it's calendar year 2000. Keep in mind that if you got a big raise not long before getting laid off, you're not going to be seeing that bump in your unemployment amount. To file a claim you need to visit a local IDES office (call (888)337-7234 for the nearest location) and bring your Social Security Card (or some other proof of your SSN), names and addresses of past employers and number of days worked for each, records showing wages earned (pay stubs), including severance and vacation pay, and any odd-job or part-time earnings while you're unemployed. It's also best to call first or check online to see if you need to bring anything else. Be aware that this money comes with strings -- long ones. You must also register for job placement -- you've got to be actively seeking work and must be able to produce a log of job search activities for every week you claim benefits, and you must be willing to accept any suitable job offered. Now for some less pleasant details. First, this isn't free money. You've got to pay federal income tax on whatever you get, though you can choose to have this deducted from each check. Second, your idea of supplementing your income with a part-time job or temping will reduce your benefit amount. If you earn less than your weekly unemployment amount, you may be eligible to receive the difference, but you're not going to be able to make $300 a week working part-time somewhere and then still get $300 per week from the state. What actually happens, if you make more than 50 percent of your benefit amount, is that you deduct the amount over the 50 percent from your benefit amount and you should, barring incident, still be eligible for that. So say you receive $150 in weekly benefits, but last week you made $100 working part time. Fifty percent of your benefit is $75, which means you made $25 over -- deduct that from your unemployment and, in theory, you should still be able to receive $125. Consider this carefully when deciding what kind of part time work you might do. Recognize that this is all very complicated and this is just a guide -- situations vary from person to person, so before depending on anything visit the IDES Website or call your local office to check how you qualify.
Also by Elaine Richardson ON DELIVERY
HOT AIR
THE ART OF WAR
GET IN THE GAME
SUFFERING GRACEFULLY
REEL DEAL
BAD BAD THINGS
GHOST TOWN
MIDSEASON SHUFFLE
HARSH REALM
THE HORROR
WINTER WONDERS
|
|
about Newcitychicago | about Newcity magazine | advertising | privacy policy | FAQ | employment |
