Question

An organization under federal jurisdiction terminates the services of an employee who has worked for 7 years. The employee's daily wages are $100.00. How much severance pay is the employee entitled to?

A. $500.00
B. $700.00
C. $1,000.00
D. $1,200.00

Answer 1

The employee terminated under federal jurisdiction after 7 years of services, earning a daily wage of $100.00, would generally expect a severance pay of $700.00 based on a common formula, but specific federal or state laws should be consulted for an accurate determination.

Step-by-step explanation:

The question pertains to the calculation of severance pay in a situation where an employee under federal jurisdiction has been terminated after 7 years of services. The daily wage is given as $100.00. Although the specific formula for severance pay can vary depending on federal or state laws, a common calculation for severance is a week's wages for each year of service, which would suggest a total severance pay of $700.00 (7 years x $100.00).

However, without more details on the federal regulations that apply, this is a general estimate and may not take into account caps or specific regulations of the state or the federal body that may limit severance pay or dictate a different calculation. It's important to consult the specific rules and regulations regarding severance for the accurate determination.