Losing your job is typically filled with stressors, but even more so if you believe discrimination was a factor in the termination. What can complicate matters more is when an employer presents you with a severance agreement. Understanding whether to accept this agreement or pursue a discrimination lawsuit is pivotal in your future and critical to protecting your rights and receiving the compensation you may be entitled to. In such situations, consulting with an employment law firm in California can provide the expertise needed to navigate these complexities and make informed decisions. Let’s break down the key considerations and options available to you so you can move forward empowered and make an informed decision that is right for you.
Let’s Get Down to The Basics of Severance
A severance agreement is, at its core, an arrangement developed and designed by your employer to be maintained and honored by you and your boss (soon-to-be former boss). Most commonly, the legal document will include an offer of a lump sum payment along with other likely benefits like an outlined or defined offer of an extension of health insurance or outplacement services. However–the perks or goodies in the packaging of a severance agreement do not come without some securely attached strings. Severance is an exchange; in exchange for your agreement to waive certain rights, the employer provides x,y, and z. The rights you may be agreeing to waive include crucial ones like the ability to sue your employer for any issues related to your employment–including discrimination.
Severance deals often are made of several core components, including but not limited to the following:
- Compensation: A lump sum payment is often included and based on several factors, including the length of your service, the type of position, and perhaps even the timing or details of your departure.
- Benefit Extension: Losing your job can come with the hefty price of losing your insurance, which can impact your scheduled doctor appointments and the primary care physician you use and impose consequences on your health maintenance and preventative healthcare efforts. Additionally, services focused on assisting you with finding new employment more efficiently and effectively under the scope of outplacement services may be part of the deal. Retirement benefits can also be incorporated into a severance package with items like 401(k) contributions included for a duration. You may be allowed guidance on how to manage and transfer retirement funds. Other elements may include enhanced pension benefits or additional vesting of stock options. These articles can make a big difference in the comfort and ease of transitioning out of your current role.
- Non-competes: Confidentiality clauses and non-competes can be included in agreements. These restrictions prohibit working for competitors and sharing company data, trade secrets, and other proprietary information.
- Release of Claims: What can potentially be, especially in cases where transgressions have transpired, or breaches of your rights have already occurred? A significant passage within a severance agreement is the “release of claims” clause. By signing, with the presence of such a clause, you would waive your right to sue your employer. If you believe discrimination was a factor in losing your job, speaking with a legal professional cannot be underscored enough. Signing without considering circumstances and other options could mean forfeiting your ability to take legal action.
Many severance packages provide immediate financial relief and help employees advance their careers. However, while eliminating some of the burdens is appealing, it also means you give up the right to pursue a lawsuit based on wrongful termination claims, including discrimination. Let’s examine the alternative track when leaving a position where discrimination is present.
Pursuing a Discrimination Lawsuit
Termination with discrimination at its roots, whether it’s based on race, gender, age, religion, disability, or another protected characteristic– you might consider filing a discrimination suit as opposed to signing a severance agreement. Yes, discrimination lawsuits can be complicated, and they take time, but they also have the potential to bring justice and bring forward more excellent compensation if you with your case.
Knowing precisely what you’re dealing with is integral to successfully pursuing a discrimination lawsuit. Discrimination can come in many forms:
- Unfair treatment based on race or ethnicity
- Experiencing bias due to your gender or sexual orientation
- You may face adverse employment action due to your age, which is ageism. California and federal laws recognize it as discriminatory against individuals over age 40.
- Suffering discrimination against you because of physical or mental disability.
Other protected characteristics through state and federal legislatures include religion, national origin, pregnancy, and more. The California Civil Rights Department website provides a complete list of these characteristics. In these complex situations, seeking assistance from a California employment law firm is essential to gather concrete evidence and demonstrate discriminatory practices effectively.
What is most critical when personally attacked for a protected characteristic at work or directly by your boss in these instances of discrimination is gathering concrete evidence demonstrating discriminatory practices.
Legal Process and Common Hurdles
Filing a discrimination lawsuit typically involves several steps. A general outline of the process looks like:
- Filling a Complaint: Most discrimination cases start with a complaint filed with the Equal Employment Opportunity Commission (EEOC) or a similar agency. This step is typically mandatory before you can move forward and file a lawsuit.
- Investigation”: The EEOC will investigate your claim to determine its validity. Essentially, they are looking to determine if there is reasonable cause to believe discrimination was offered, and this can take a couple of months.
- Mediation and Settlement: In some cases, the EEOC may facilitate mediation between you and your employer to settle without going to court.
- Lawsuit: If mediation should fail and the EEOC finds cause, or if they issue a “right to sue” letter, you can then file a lawsuit through the court. The process involves pre-trial motions, discovery, when both parties will exchange evidence to support their side, and potentially a trial.
The time and resources a claim and lawsuit can take should be considered. However, agreeing to an inadequate severance offer or signing one when you have suffered discrimination can produce its own short-term and long-term problems.
Potential Outcomes and Compensation
A successful discrimination lawsuit can yield significant results and compensation despite the challenges. The outcome can include back pay for lost wages, benefits from the discriminatory act until a resolution is reached, and front pay for future lost earnings if you cannot return to your previous position. You may also receive compensatory damages for emotional distress, pain and suffering, and other non-economic losses. Of course, it’s hard to place a monetary figure on such damages, but compensation can be calculated and arrived at for pain, suffering, emotional losses, and other non-economic damages. In cases of blatant discrimination, the court may also award punitive damages to punish the employer and deter future misconduct, which can prevent others from suffering from the same discriminatory acts and resulting damages. If the case prevails, the court could also order your former employer to pay your legal fees and associated costs.
Evaluating Your Options with a Legal Professional
Choosing between accepting a severance agreement and pursuing a discrimination lawsuit is a significant decision that depends on your circumstances and priorities. A severance package can offer immediate financial support and benefits, but it may often require you to waive your right to sue. On the other hand, a discrimination lawsuit can be a long and challenging process. Still, it could result in more significant compensation and hold your employer accountable for their wrongdoings. It’s critical to consult an employment lawyer and get their professional guidance, especially as life-changing consequences come with uninformed or rushed decision-making.
Further, your employment attorney will review the details of your employment, claim, and potential legal case and pave the path that suits you best. Strong negotiation skills are paramount with either route. Whether you are trying to develop a severance agreement, you can, in good conscience, agree to or, via mediation, work towards a favorable and just settlement agreement; an employment lawyer with years of negotiating and mediation experience is necessary. Contact an experienced California employment attorney at 909-884-6451 for a confidential and free consultation.
