Severance Agreement Review

13 03, 2020

Severance Agreements Can Be a Windfall—But Also a Minefield

By |2020-03-13T21:51:01+00:00March 13th, 2020|Severance Agreement Review|0 Comments

Always Have Your Severance Agreement Reviewed by an Attorney Being laid off can be devastating—but a good severance package can take the edge off. Severance packages continue the relationship between employer and employee for a period of time beyond the termination of employment—for instance, by extending your benefits and giving you severance pay. But they can also impose certain terms, on both employer and employee. And those terms are often more restrictive to the employee. That’s why it’s crucial to have an experienced employment lawyer review your severance agreement before you sign it—no matter what. Here are nine pitfalls your attorney can help you avoid: Less money than you deserve Your employer may be under-paying—and a lawyer can help you negotiate for more. No other earned benefits Are you owed earned sick days or vacation time? Make sure your employer includes those in its agreement. No continued health insurance One of the most frightening things about losing your job is losing your health insurance along with it. Sure, you can buy coverage under COBRA—but that’s often very expensive. As an alternative, you may be able to negotiate staying on your company insurance for a time. Non-compete agreements  These say that [...]

29 01, 2019

3 Ways Your Severance Package Could Undermine Your Future Employment

By |2019-01-29T23:29:07+00:00January 29th, 2019|Severance Agreement Review, Uncategorized|0 Comments

Don't sign away your rights Leaving your job? Were you offered a severance agreement? Better hold off before you sign. Not only could you sign away important rights if you’re not too careful, but you could be agreeing to terms that could make your life after this job difficult. Red Flags to Look Out For Terms and clauses to watch out for include: Non-compete agreements. This is a clause in your contract that prevents you from working for a competing employer for a certain period of time—sometimes years. It can also put restrictions on your other choices, such as the location where you work. Very restrictive non-compete clauses may not be enforceable in court, but it’s essential to have a lawyer look over any non-compete wording before you sign. Non-disparagement agreements. Some severance contracts contain a clause that says you are not allowed to say anything “disparaging” about the employer. These are difficult to enforce—and if they aren’t mutual, there’s nothing to prevent the company from disparaging you when a future employer calls to check your references. Ideally, what you want is a neutral reference—where the employer will only confirm when you worked for them and what your title was. You can then cultivate [...]

18 01, 2019

Negotiating a Severance Agreement

By |2019-01-18T01:57:18+00:00January 18th, 2019|Severance Agreement Review|0 Comments

Why you should talk to a lawyer before you sign a severance agreement A severance agreement is a contract between you and your employer that defines the rights and responsibilities of both parties when you leave your job. You might be asked to sign one when you’re hired, but more commonly, you’ll be presented with one when you leave. On the one hand, it’s good to have one—because it stipulates what your employer owes you in terms of severance pay and extended benefits. On the other hand, your employer may demand things in return that can make your life difficult. Before you sign a severance agreement, it’s crucial to have a lawyer look it over. Here’s why. Things you might give up in a bad severance agreement Here are a few things you might have to give up if you sign a severance agreement without knowing what’s in it. Employer payments to your retirement account. Do you have a retirement account with employer-matching contributions? Are you vested? Many employers won’t let you keep that employer contribution unless you are—and that can take years on the job. Check with a lawyer to make sure you know what will happen to your retirement account [...]

23 03, 2018

Should You Sign A Severance Agreement?

By |2018-03-23T16:26:43+00:00March 23rd, 2018|Non-Compete Clauses, Severance Agreement Review|0 Comments

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 [...]