Reddinger v. Sena Severance Pay Plan

Reddinger v. Sena Severance Pay Plan Summary

What Happened

Employees at NewPage Wisconsin System, Inc. were offered severance benefits if they were involuntarily terminated. The workers left their jobs in May, even though the company offered to keep them employed until October. They later sued, claiming they were entitled to severance pay.

The Court's Decision

The Seventh Circuit Court of Appeals ruled against the workers. The court decided that because the employees chose to leave in May rather than accept the company's offer to continue working, they voluntarily quit their jobs. Since the severance plan only covered involuntary terminations (being laid off), the workers were not eligible for the benefits.

Why This Matters for Workers

This case shows that severance benefits typically depend on how employment ends. If you quit—even if circumstances are difficult—you may not qualify for severance. To receive these benefits, you generally need to be terminated by the employer against your will. Workers should carefully review severance plan rules before deciding to leave a job, as voluntarily resigning can affect what benefits you receive.