Tom Colucci v. Agfa Corporation Severance Pay Plan

**Colucci v. Agfa Corporation: Court Rules Against Worker in Severance Pay Dispute** Tom Colucci worked for Agfa Corporation starting in 1983, but left the company and was later rehired in August 2000. When he was eventually laid off, Colucci believed his severance pay should be calculated based on his total years of service dating back to his original 1983 start date. However, Agfa's severance plan administrator calculated his benefits using only his time since being rehired in 2000, significantly reducing his payout. Colucci sued, claiming the company breached its contract by miscalculating his severance. A lower court initially sided with him, but the Fourth Circuit Court of Appeals reversed that decision. The appeals court found that the severance plan's language about when employment begins was unclear and ambiguous. Because of this ambiguity, the court ruled that Agfa's plan administrator acted reasonably in choosing to use the 2000 rehire date instead of the original 1983 date. This case matters for workers because it shows how unclear language in benefit plans can work against employees. When severance or pension plan terms are ambiguous, courts often defer to the employer's interpretation, potentially reducing benefits for workers with interrupted service.