Former WGI exec seeks $2 million in severance pay, benefits from URS 

A former Washington Group International executive filed a lawsuit this month against URS Corp. seeking close to $2 million in compensation he says he’s owed in severance pay and other benefits as a result of the merger of the two companies.

Court papers filed on behalf of Larry L. Myers, WGI’s senior vice president in charge of human resources before the November 2007 merger, say he is owed that money as a result of a 2006 severance agreement that has not been adhered to by URS. The lawsuit was filed in the US District Court for the District of Idaho

Myers submitted his resignation on April 1, 2008, and his last day of work was May 2. The lawsuit was filed on Aug. 6.

The agreement called for him to be paid twice his annual base pay – plus his target annual bonus, $50,000 for financial counseling and $25,000 for medical and dental benefits – if the company underwent a change of control that left him in a position that was not the same, better or substantially equivalent.

The lawsuit says that Myers, a 31-year employee of WGI, retained an executive level position with URS to help with the transition but that he lost half of the 12 enumerated decision-making responsibilities and associated duties of his job during the conversion of WGI from corporate to division status.

“This is not intended to be a complaint; I accept it as merely the realistic outcome of the change in control,” Myers wrote in a March 31 resignation letter included in court papers.

The lawsuit says the company all but ignored letters, e-mails and documents submitted on April 1, April 4, June 13, July 7 and July 24. URS said on July 15 that it would be sending a “determination letter shortly” but never did, court papers say.

The lawsuit says Myers has been forced to make COBRA payments of $668 per month.

The $2 million Myers is seeking includes $304,000 as part of a voluntary deferred compensation plan and $116,000 under a benefit restoration plan.

The suit claims breach of the Idaho Wage Claims Act, breach of contract and breach of implied duty of good faith and fair dealing. The alleged violation of the wage claims act means that Myers could be entitled to three times the amount of the unpaid compensation, or close to $6 million.

Messages left with URS and with Myers’ attorney were not returned.

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