Layoff Settlement Agreement Reached - Health Professionals & Allied Employees

Layoff Settlement Agreement Reached

A short time ago, HPAE and AAC executed an agreement that provides enhanced severance pay and other benefits for our members that were laid off by Sunrise House/AAC in the last two weeks.

** Do not sign the separation agreement sent to you by AAC.

Severance Pay:

All bargaining unit employees with less than six (6) months of service to the Employer shall receive two (2) weeks of severance pay.

All bargaining unit employees with six (6) months of service to less than two years of service with the Employer shall receive three (3) weeks of severance pay.

All bargaining unit employees with two (2) or more years of service shall receive one (1) week of severance for each year of service plus an additional three (3) weeks of severance.

All severance will be paid in a lump sum on July 7, 2023.

For Per Diem employees, severance will be calculated based on average weekly hours worked over the previous six (6) month period. Full-time and Part-time employees will have their severance calculated based on regularly scheduled weekly hours as indicated in Ultipro.

Important Note: Please notify HPAE immediately if you believe that you have not been given proper service credit or were inadvertently left off the severance list. The agreement specifies that we have until July 21, 2023 to raise any concerns – after that all payments are final. Be aware that severance is only for time employed by AAC (max is seven years) not for working at Sunrise House before AAC took over.

Health Insurance

AAC will continue employees on the health insurance plan through July 31, 2023 (keep in mind that the provider becomes BC/BS of Tennessee as of July 1). You have 90 days after July 31, 2023 to submit for HRA reimbursement for claims from July 1 to 31.

After July 31, you can opt to continue coverage under COBRA (you pay full premium cost) or attain coverage elsewhere – such as the ACA exchange – see flyer distributed two weeks ago.


All bargaining unit employees will be paid out for all accrued but unused PTO time in a lump sum on July 7, 2023.

401 (k)

All bargaining unit employees are entitled to all self-contributed funds and all vested employer funds in their 401(k) as provided in applicable laws and plan documents.

Pending Grievances

We were able to reach settlements for all but one outstanding grievances that were satisfactory to those grievants. We agreed to continue with the arbitration for one member.

Agreement not to File Claims

In exchange for the above, HPAE has agreed to not file any legal actions regarding the closing of Sunrise House and we have agreed to withdraw the Unfair Labor Charge that we filed with the NLRB.

Potential Re-opening of Sunrise House

In the event that AAC re-opens Sunrise House they have acknowledged our members’ rights to recall for one year (per the contract). If they re-open after late September, the contract will be extended for 30-days to allow the parties to negotiate a successor contract since the current one expires on October 25, 2023.

We have inquired about access to payroll information – eg. UltiPro – and will provide an update as soon as we get information from AAC.

The agreement encompasses all but one of the provisions discussed at the membership meeting last evening. Checks will be taxed as regular wages. If too much tax is withheld, that money will be returned to you when you file your tax return in April 2024.

In solidarity,

HPAE Local 5629 Executive Board