State Street Bank & Trust Co. v. Deputy Director of the Division of Employment & Training

In April, 2003, State Street Bank & Trust Co. (State Street), seeking to reduce its workforce without involuntary terminations, began to offer its domestic employees what it called a “Voluntary Separation Package” (VSP) containing incentives for employees who agreed to leave its employ. Charley Eustache and Rebecca Drucker, who were then employed by State Street, accepted a VSP and terminated their employment. They then applied for unemployment compensation benefits. State Street objected, contending that their voluntary departure made them ineligible for benefits. Administrative proceedings…