Severance pay is money paid to an employee who resigns from state service voluntarily (i.e., is not fired). Classified and exempt state employees are not entitled to severance pay upon termination from employment (ID Code Sec. 67-5342). A "classified" officer or employee is an employee who is appointed to a position subject to the provisions of the merit examination and the selection, retention, promotion, and dismissal requirements of the Idaho Personnel Act. An "exempt" employee is an executive, professional, or administrative employee, or one who qualifies for any other exemption from cash compensation for overtime under the federal Fair Labor Standards Act. Designation of a position as exempt is made by the Idaho personnel commission.
Last reviewed on November 4, 2014.