Severance Agreement Lawyer Ann Arbor, MI

In Ann Arbor, employers in the education, technology, and healthcare industries frequently execute severance agreements with employees to facilitate a clean end to the employment relationship. Because employers will insist on terms that favor them, employees presented with severances need experienced legal advocates who can negotiate for fairer terms — not least the highest amount of money in severance pay possible. A knowledgeable lawyer can help you reach a favorable deal that puts you and your needs first.

Contact Fagan McManus, P.C., for a free initial case review with a severance agreement attorney to discuss your rights and get help fighting for a deal that protects your personal and financial interests.

Understanding Severance Agreements

When an employer or employee wishes to end the employment relationship, the employer may insist on having the employee sign a severance agreement. Severance agreements govern the end of the employment relationship and the parties’ rights and obligations once the employee departs the company. Typical circumstances in which employers may propose severance agreements include:

Mass layoffs
Downsizing/company restructuring
Terminations for cause or disciplinary terminations
Ongoing legal claims asserted by an employee against the employer, such as discrimination, harassment, or wage-and-hour claims
Departures of executives or high-level employees

Michigan courts typically enforce severance agreements when an employee knowingly and voluntarily enters the agreement. A court may find a valid agreement when an employee has a reasonable opportunity to review the agreement and seek legal counsel.

Federal law also imposes specific requirements on severance agreements presented to employees 40 and older. The Older Workers Benefit Protection Act requires employers to:

Put severance agreements in plain written language if the agreement has the employee waive their rights under the Age Discrimination in Employment Act
Advise the employee of their right to consult an attorney before signing the agreement
Give the employee 21 days to consider the agreement (45 days during a group termination or reduction in force)
Allow the employee to revoke the agreement within seven days of signing it

Severance agreements can have significant effects on an employee’s future employment, benefits, and rights, as various provisions may restrict the employee’s ability to enter specific jobs or may prohibit them from pursuing various legal claims against the employer after they leave the company.

Key Terms in Severance Agreements

Severance agreements usually contain several critical terms that address the end of an employment relationship, starting with the amount of money and other compensation the employee will be paid upon termination and how those funds and benefits will be disbursed. Key terms to consider when negotiating a severance with your employer include:

Severance Pay – Perhaps most importantly, severance agreements typically provide the departing employee with some form of financial compensation, such as a lump sum payment to settle any claims the employee has against the employer, or a partial or full continuation of the employee’s paychecks for a limited period. Severance pay can provide employees with a vital financial cushion as they look for their next job, as long as it is reasonably sufficient to cover living expenses for several months.
Continuation of Benefits – A severance agreement can also provide continued employment benefits, such as health insurance, to a departing employee for a limited period, either funded by the employer or available for purchase by the employee through COBRA.
Non-Disclosure/Confidentiality – Severances can include non-disclosure or confidentiality provisions that prohibit the parties from revealing the terms of the agreement or the circumstances leading to the end of the employment relationship.
Restrictive Covenants – A severance agreement may include restrictive covenants for the employee, such as non-compete or non-solicitation provisions, which prohibit the employee from taking a position in a competitor company or soliciting the employer’s customers, vendors, or employees.
Release of Claims – Severances frequently include releases of claims under which the parties agree not to pursue or continue pursuing any claims they may have against one another. Releases of claims help foster a clean break between an employer and employee by ensuring that the employee does not subsequently pursue discrimination or harassment claims against the employer.
References or Rehire Eligibility – Severance agreements may address the employer’s obligation to provide employment references for the employee or state whether the employee can seek another position with the employer or its affiliates.
Non-Disparagement – A severance may include a non-disparagement clause that prohibits an employee from publicly disparaging the company or requires the employer to refrain from giving a negative reference for the employee.

Why You Shouldn’t Sign Severance Agreements Without Legal Review

Signing a severance agreement without having an experienced employment law attorney review the document can jeopardize critical rights and legal claims that you may have. A severance agreement presented to you by your employer may include provisions under which you waive your right to pursue legal action against the employer, such as discrimination claims under Title VII, the ADEA, the ADA, or Michigan’s Elliott-Larsen Civil Rights Act, or wage and hour claims for failure to pay minimum wage or unpaid overtime. Once you sign the agreement, it can be very difficult to exercise your rights under any of these laws.

An attorney can review a proposed severance agreement to identify any legal claims you might waive by signing the agreement and explain the consequences of giving up such claims. They can also negotiate with your employer on your behalf to secure more favorable terms, including avoiding releases of employment law claims you may have against the employer, which can help protect your career and financial interests.

Special Considerations for Executives and High-Level Employees

Employers frequently negotiate severance agreements for the departure of executives and other high-level employees. These employees may have unique provisions in their severances, such as compensation that includes stock options, bonuses, or garden leave pay, IP assignment clauses, or broader non-compete and non-solicitation agreements.

How an Attorney Can Help Negotiate Your Severance

When your employer proposes a severance agreement for your termination or resignation, a seasoned attorney from Fagan McManus, P.C., can help you negotiate terms that protect your interests by:

Sitting down with you to discuss your needs, concerns, and goals to build a legal strategy focused on achieving your objectives during negotiations
Reviewing proposed agreements to understand how they affect your rights and interests
Vigorously negotiating on your behalf with your employer to secure favorable terms, including for severance payments
Explaining the meaning and effect of the provisions of a draft severance to help you make informed decisions

Why Choose Fagan McManus, P.C.?

The terms of a severance agreement can have a significant effect on your career, professional reputation, and financial interests, making your choice of legal representation during negotiations with your employer critical to protecting your rights. Turn to a severance agreement lawyer from Fagan McManus, P.C., to help you negotiate a favorable severance because:

We have a proven record of success standing up to employers on behalf of hardworking employees. Our attorneys face employers of all sizes, ranging from small businesses to Fortune 500 companies.
When you choose us to help you negotiate a severance, you can rest assured that our legal team will work hard to fight for your interests and provide you with comprehensive advice to ensure you can make an informed decision about whether to sign a severance agreement.
Our firm will provide you with the personalized attention and dedicated support you need as your employment comes to an end.

Contact Our Firm Today for Guidance

If your employment in Ann Arbor has come to an end and your employer has proposed a severance agreement, having experienced legal counsel in your corner can help you pursue a fair deal. Contact Fagan McManus, P.C., today for a free, confidential consultation with a severance attorney to get help negotiating a favorable agreement that protects your future career interests and your financial security as you move on from your current job to the next one.