- Severance pay earned for an employee's labor or work.
- Severance pay awarded in exchange for something other than work, most commonly in exchange for a covenant not to compete or in exchange for a waiver of claims.
Does this matter? It sure does. Wages subject to the Maryland Wage Payment and Collection Law can be tripled (if withheld in bad faith).
In Blood v. Columbus U.S. (April 2018) the Maryland Court of Special Appeals recently followed Stevenson: money paid in exchange for a period of non-competition is not a wage “due for work" and therefore not subject to the Maryland Wage Payment and Collection Law.
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