Signing a Severance Agreement Can Affect Your Rights When your employment comes to an end through a layoff, resignation, or termination and your employer offers a severance agreement, you are placed in a time-sensitive, emotional decision – whether to sign it. That decision can drastically alter your finances and possibly future job opportunities. Exercise caution if you are being pressured into signing a severance agreement on the spot. You may be entitled by law to a specified amount of time to consider the severance agreement before signing it. For example, under the Age Discrimination in Employment Act (ADEA), an employee over the age of 40 who is laid off is entitled to 21 days to consider whether to sign a severance agreement. If part of a group layoff, the employee is entitled to 45 days under the Older Workers Benefit Protection Act (OWBPA), which also provides a seven-day right to revoke period after signing. What is a severance agreement? A severance agreement is a contract created by your employer that typically requires you to waive your right to sue in court for wrongful termination based on age, race, sex, disability, and other types of discrimination in exchange for a specified [...]
You feel you’ve gotten as far as you can in your current job and you’re thinking about moving on.