Accardi v. Pennsylvania Railroad Co

In Accardi v. Pennsylvania Railroad Co., 383 U.S. 225, 86 S.Ct. 768, 15 L.Ed.2d 717 (1966), severance pay was computed on the basis of years of "compensated service." In looking behind the severance pay provisions and in holding that the severance pay there involved was in reality a seniority right based merely on continuous service, the Supreme Court noted that under other provisions of the severance pay agreement an employee could get credit for an entire year's compensated service by only working seven days per year.