USA Today laid off about 70 people last month. Those who lost their jobs received a week of pay for every year of service, health care through the end of September and the vacation pay they’d already accrued for the year.
But as they turned in their laptops and cellphones, some USA Today journalists were surprised to find out who would pay a chunk of their farewell package: their state unemployment office.
USA Today is owned by Gannett, which doesn’t always pay laid-off workers a traditional severance. Instead, as in the case of the recent layoffs, it may provide a “transitional pay plan.” In one of these plans, Gannett, through a contractor called Total Management Solutions, makes up the difference between a worker’s old paycheck and their unemployment check for a certain amount of time. Read more