Employees terminated from their jobs may be offered severance pay. Typically a severance agreement will require an employee to waive all rights, releasing an employer from potential lawsuits.
Terms of a severance agreement often include:
- An agreement that an employee will not bring a legal claim against the employer
- Non disparagement clause to prohibit employee from publicly criticizing the employer or disclosing the circumstances of their departure from employment
- A prohibition against disclosure of an employer’s trade secrets to include confidential and proprietary information
- A non-solicitation agreement prohibiting an employee from working with existing customers of the employer and a non-compete clause limiting work with competitors or staring a similar business
- An agreement not to share any information related to the severance agreement
Because a release can be difficult to overturn once signed, it is important to understand what rights you are giving up beforehand and ensure that you are receiving the maximum compensation possible in exchange for your signature.
An experienced employment law attorney can evaluate the terms of the proposed agreement, helping an employee to understand what legal rights they are waiving and determining whether a better package can be achieved – especially if there are potential legal claims against an employer.
A careful assessment of the situation is key. Is there evidence of wrongful termination? Was the employee subject to discrimination or harassment at work? Were there violations of family medical leave rights or refused accommodations for disability?
It is possible that pursuing a claim of discrimination or other violations of law outweigh the severance package offered. It is advisable to discuss your situation with an experienced employment law attorney.
Beyond negotiating a better package, it is also important to consider the financial and legal implications of signing a severance agreement. Severance agreement payments can affect anything from unemployment benefits to taxes and should be evaluated by an employment law attorney. Legally speaking, most severance agreements include confidentiality agreements, non-disparage agreements, and non-compete clauses in addition to waiving rights to sue the employer that an employee should understand before signing.
Contact Our Experienced Severance Package Attorneys for Help
Get the best severance agreement by contacting the employment law attorneys of Alan C. Olson & Associates for immediate assistance at 262-785-9606.
