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Wow. What a bunch of dirt bags. I've been in the bus for decades. I've experienced alot, have seen alot. But I've not heard of this but bosses can be dirtbags. Usually if I give notice I work the 2 weeks. Wow. They do it because they are mean hearted-somebody allowed that to happen.
This was once standard operating procedure in law firms (to terminate immediately once the employee provides notice). I live in a right to work state, so this is perfectly legal. Never provide notice until the new job offer is extended and accepted.
Sometimes this is done because the employer is afraid that the employee leaving may be things that are harmful. By no means am I implying your coworker would do it, but unfortunately, it does happen.
I put in my two weeks as a paralegal and was told thats fine finish the two weeks. After week one was done i was called in my managing attorneys office and told that friday was my last day. I could either finish my day or leave anytime after the meeting. It was very strange since there was no animosity whatsoever I just was moving to a better paying position elsewhere. I saw people give their 2 weeks and be asked to leave immediately at this firm as well.
If she gave her notice and was terminated after, depending on where she was working (in what state), she may be entitled to her two-week pay. She should consult an attorney to protect her rights.