Estimate your “severance bank”

October 6, 2020 7:08 PM

Due to a landmark arbitration decision, most employees who work in IWA and Division A shops will now be entitled to either a lump sum severance payment or pay each week as a structured payout of severance. For more details about the arbitration decision, click here.

For hotels that have opted to make bridge payments: eligible workers will receive weekly checks, or “bridge payments”, that will help supplement the difference between their unemployment benefits (including any federal supplements) and regular weekly wages until either (1) they are recalled and return to work or (2) they are paid an amount in bridge payments that is equal to the amount of severance pay they would otherwise receive had their hotel permanently closed (their “severance bank”).

Hotels have the right to make a one-time decision to pay the severance out in a lump sum payment, as opposed to bridge payments, which means those workers would get the entirety of their severance entitlement (minus statutory deductions) in one check.

These payments will have no effect on employees’ seniority, recall rights, or eligibility to receive unemployment benefits.

Most hotels began to make severance payments on October 1st. You can use this calculator to estimate how much your total “severance bank” will be.

 

What is your hourly rate of pay?

  • Use your rate of pay as of your last day of work. If you received payments after July 1, 2020, including but not limited to PTO, or were provided with a WTPA Notice (notice of pay rate change), severance pay is based on your July 2020 wage rate.
  • Tipped workers: Enter your hourly rate x 2
  • Banquet servers: Enter the a-la-carte server rate (currently $18) x 2
$

How many hours are you normally paid in a day?

hours

How many days severance do you get per year?

  • IWA Hotels: Enter 4 days
  • Division A:
    Enter 4 days if you’ve worked 1 - 4 years
    Enter 5 days if you’ve worked 5 or more years
days

How many years have you worked at your current property (rounded to the nearest ¼ year)?

years


Estimated total severance bank:
(hourly rate) x (hours per day) x (days per year of severance) x (years of service, rounded to the nearest ¼) = estimated total severance bank


Important Note: This calculator is meant to give you a simple and general idea of the total amount of severance you may be entitled to. Your actual severance bank entitlement may be different depending on what your regular pay rate actually is and whether you have received severance in the past. If you have any questions regarding your severance, contact your Business Agent at (212) 245-8100 and select option #1.