Word or PhraseDefinition
Contracting (vs Consulting)Contracting, as we use it here, and most places, is about coming into a company to complete a specific task or project. Consulting is about helping a company figure out how to do something, or if they should.
COBRACOBRA is a federal law that requires employers of 20 or more employees who offer health care benefits to offer the option of continuing this coverage to individuals who would otherwise lose their benefits due to termination of employment, reduction in hours or certain other events. Individual states may also have COBRA-like laws.
Franchise (or, technically, business format franchise)The International Franchise Association definition is: This type of franchise includes not only a product, service and trademark, but also the complete method to conduct the business itself, such as the marketing plan and operations manuals.
Franchise agreementThe legal, written contract between the franchisor and franchisee which tells each party what each is supposed to do.
Severance Pay (or Package)Upon termination, especially when employees are terminated through no fault of their own and/or have worked for the employer for a considerable amount of time, some companies have a policy of granting severance pay (and / or other benefits). Severance is not required by the Fair Labor Standards Act (FLSA). What and whether an employer chooses to grant severance is at its discretion.
Each employer is different.
Unemployment compensationUnemployment compensation (also commonly called unemployment insurance) is a temporary benefit paid by a U.S. state (or territory) to provide some income after a person loses their job. Eligibility and time and amount of benefit varies by state. A list of state offices can be found on our resources page.