Severance Agreements Attorney
Presented with a Severance Agreement? Call us first before signing
Do not sign a severance agreement without understanding what you are giving up in return. Employers are generally not required to pay you any severance. Often, however, employers offer severance pay – a few months of salary and/or health benefits – upon termination on the condition that you release and/or waive all potential legal claims that you might have against your employer. Stated another way, in return for an immediate payment of a small sum of money, the employer requires you to permanently give up your right to sue your employer and potentially obtain larger recovery later on.
Why Should You Hire Us to Negotiate a BIGGER Severance Package for You?
- We are not a settlement mill. We do not accept a large volume of cases in order to put in minimal effort on your behalf. We dedicate a substantial amount of time and resources to negotiate the best and biggest amount on your behalf. You will see the difference in the time we spend with you.
- We specialize in employment law matters and specifically negotiating severance and separation packages for terminated employees across all industries. Notice that nowhere in this website is a discussion about a different area of law.
- We can provide references from prior clients.
- We help clients on a contingency basis. Hence, if it appears that you have grounds to seek a bigger severance package, we do not get paid for our time unless we are successful.
Whether you are an executive, director, or an hourly employee, we look forward to helping you today. If you desire a free consultation, contact us today and provide your preferred response time.
Why Should You Speak to a Lawyer Before Signing a Severance Agreement?
1. You do not have to retain an attorney to take advantage of a free consultation. We offer free consultations to help you decide whether you have grounds to negotiate for more.
2. Employers do not offer severance out of the goodness of their heart. An offer of severance is made because the employer wants many things from you in return. Unless you have an employment agreement stating that you are entitled to severance pay upon termination, an employer is not required by California law to give you any severance pay upon termination at all. Most, if not all, severance agreements are legal documents in which an employer offers you money in return for a release of claims you may have against an employer. Even if an employer is obligated to give you severance per a contractual obligation, in the proposed severance agreement itself the employer will most likely include a release of claims and/or other concessions from you. You are not bound by the Company’s severance policy to accept any offer made.
3. The monetary amount of severance pay may not be commensurate with the value of the claims you are giving up. Stated another way, in return for a few months of salary and/or extension of health benefits – in the severance agreement the employer will ask you to agree to give up your right to sue your employer and potentially obtain larger recovery later on. To avoid such an unfair result, you should not sign a severance agreement unless you understand all the terms included therein and the value of what you are giving up. In many situations, by jumping to accept the first offer made you may give up your opportunity to seek a bigger severance. Hence, if you have grounds to negotiate for more severance, you should hire a lawyer to negotiate on your behalf.
When Should You Hire a Lawyer to Negotiate a Bigger Severance Package?
Below are some examples of situations when you should hire an attorney rather than jumping at the chance to accept the first severance offer extended to you:
- If you were terminated as a result of unlawful discrimination. For example, did the employer terminate you because of your disability because the employer no longer wanted to accommodate your disability? Did the employer terminate you as part of its effort to age out older, senior employees in favor of replacing you with someone substantially younger? Have you been discriminated against because of your gender, race, national origin, religion, sexual orientation or any other protected characteristic?
- If you are the victim of an illegal retaliatory termination for complaining. Retaliation may occur in one swift blow or over a series of events resulting in termination. Have you complained about sexual harassment? Discrimination? Or, any other illegal activities?
- If you were terminated for asserting your rights. Did the employer terminate you because you asked for reasonable accommodations because of your health issues and/or pregnancy? Were you fired for asking employer to comply with workplace safety, OSHA requirements, or reporting OSHA requirements?
- Did the employer terminate you to avoid paying your owed wages, commissions, and/or prevent your retirement, equity or stock options from vesting?
- If you were terminated for participating as a witness in an investigation relating to a complaint of sexual harassment, retaliation, or other illegal conduct.
- If you were terminated for standing up for patient safety, patient rights, or for refusing to engage, assist, or condone illegal activities.
- If you were constructively terminated. Meaning that the employer made conditions objectively intolerable because of unlawful discrimination and/or retaliation.
- If you were wrongfully terminated within the meaning of the law.
This is not a complete list of all the situations that may give rise to grounds for negotiate a higher severance package. Hence, we offer free consultations to learn about your unique situation.
What Is Typical Severance Pay?
There is no minimum or maximum amount of severance pay set by law. Severance pay may be in the millions or the equivalent of a few months of salary. The amount of severance pay an employer is willing to pay often depends on the value of the claims you are giving up, negotiation strategy, research, and the presentation. Hence, retaining an attorney that specializes in employee rights makes a big difference.
Can You Ask for a Bigger Severance Package?
Yes, you can. However, we do not recommend that you ask for a bigger severance package on your own. The document was drafted by Employer’s legal counsel. Employer’s legal counsel will assist the employer in negotiations and may make misrepresentations or engage in tactics that may put you at a disadvantage. The Company is looking to avoid paying a bigger severance. Moreover, an appreciation for the nuances in the law and legal expertise is necessary for successful negotiation.
How Enforceable Are Severance Agreements?
A severance agreement is enforceable as any other contract if it is drafted properly. As your Counsel, we will work to ensure that all severance agreements negotiated on your behalf are also drafted properly to ensure that in the event the employer breaches its contractual obligations to pay severance, the agreement is not just a piece paper akin to a napkin the employer can easily disregard.
