Connecticut Attorney General's Office

Press Release

Attorney General Questions Aetna About Its Obligations To Compensate Laid Off Employees

November 20, 2009

Attorney General Richard Blumenthal has asked Aetna, Inc. to provide his office with information about its plans to fully compensate hundreds employees laid off who have accrued vacation, leave time and other benefits.

Aetna recently announced plans to lay off 625 employees, including 160 in Connecticut, and has indicated plans for future layoffs in 2010.

Blumenthal's office has received complaints that Aetna plans to pay laid off employees only half of their accrued paid leave time, possibly violating state law.

Blumenthal has asked Aetna to provide his office with detailed information about its plans to compensate laid off employees for earned leave time, including information concerning any company policy or agreement that provided for payment of accrued fringe benefits -- or its justification for refusing to provide full compensation.

Blumenthal said, "I am deeply concerned that these Connecticut employees are being discharged in the midst of a difficult job market, particularly if they do not receive the full measure of severance and accrued fringe benefits to which they are entitled.

"Wholly aside from the company's legal obligations and policies, there clearly is no legal impediment to the company compensating laid off employees for the full value of accrued fringe benefits if it so chooses as a matter of good corporate citizenship. These employees and their families will confront an exceedingly difficult employment market, and need and deserve all the severance compensation and assistance the company can provide."

State law generally requires that laid off employees are entitled to payment in the form of wages all accrued leave time and other fringe benefits upon termination of employment consistent with company policy or collective bargaining agreements.