Understanding Severance Agreements
A severance agreement is a contract between an employer and an employee that outlines the terms of the employee’s departure. Typically, these agreements include compensation in exchange for the
employee’s agreement to waive certain legal rights, such as filing a lawsuit against the employer. While severance pay is not mandated by federal law, many employers offer it to maintain goodwill or to safeguard against potential legal action.
When your employment comes to an end, employers in California may offer you a severance agreement. This legal document outlines the terms and conditions of your departure and any associated benefits. As an employee, it’s crucial to understand the complexities of these agreements to make informed choices and safeguard your rights.
Key Provisions in a Severance Agreement
- Severance Pay: Additional compensation beyond statutory requirements.
- Continuation of Health Benefits: Ensuring access to healthcare post-employment.
- Non-Disclosure Agreements (NDAs): Restrictions on sharing company information.
- Non-Disparagement Clauses: Prohibiting negative statements about the employer.
- Other Benefits: Tailored provisions based on individual circumstances.
Before signing, it’s essential to review the document carefully and consult with an employment attorney to fully understand its implications.
While no mandate requires employers to provide severance under California law, SB 331, signed into law in October 2021, introduced important provisions:
- Time to Review: You have a minimum of five days to review the severance agreement.
- Consulting with an Attorney: Workers or former employees have the right to consult with an attorney.
- Protection Against Retaliation: Employers cannot prevent discussion of fact-based information related to cases or claims of retaliation, harassment, bias, and other protected characteristics.
The Intersection of Severance Agreements and Wrongful Termination
Wrongful termination occurs when an employee is dismissed from their job for illegal reasons, including but not limited to discrimination, retaliation, or failure to comply with federal and state labor laws. If you believe your termination was wrongful, accepting a severance package without legal consultation may limit your ability to challenge the termination or seek further compensation.
Retaliation and Discrimination: Know Your Rights
Retaliation and discrimination in the workplace are prohibited under various federal and state laws. Retaliation refers to adverse actions taken by an employer against an employee for engaging in legally protected activities, such as filing a complaint or participating in an investigation. Discrimination involves unfair treatment based on race, color, religion, sex (including pregnancy, sexual orientation, or gender identity), national origin, age (40 or older), disability, or genetic information.
These protections apply to both private and public employers and are outlined under the Fair Employment and Housing Act.
Reviewing the Terms and Conditions
Before signing any severance agreement, carefully review the terms and conditions. Ensure you understand all provisions, including those related to:
- Wrongful Termination: Protection against unjust dismissal.
- Labor Violations: Addressing any violations of labor laws.
- Wage and Hour Matters: Ensuring fair compensation for hours worked.
Why You Need a Severance Agreement Lawyer
Severance agreements are more than just parting terms between an employer and employee; they are a crucial document that can significantly impact your future employment prospects and financial security. Our skilled severance agreement lawyers ensure that your rights are protected and that you receive the most favorable terms possible. We meticulously review every clause to safeguard against potential pitfalls and negotiate terms that reflect your best interests.
At Sanford A. Kassel, A Professional Law Corporation, we specialize in employment law. Our experienced attorneys can guide you through the intricacies of severance agreements, protecting your rights and ensuring fair treatment during this critical phase of your career.
Contact Us for a Free Consultation
For a free and confidential consultation, contact us today at 909.884.6451. Let us advocate for your best interests and help you navigate the complexities of severance agreements.
Remember, a well-negotiated severance agreement can make a significant difference in your post-employment transition. Trust the experts at SANFORD A. KASSEL, A Professional Law Corporation to provide personalized guidance.
