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As you prepare to leave your job in Farmington Hills, your employer may present a severance agreement—especially if your departure isn’t on the best of terms. Don’t make the mistake of signing this document without carefully reviewing it first, as doing so could put your financial security and legal rights at risk. Instead, get help from an experienced severance agreement attorney serving Farmington Hills who can help you understand your options and negotiate terms that protect your interests. Contact Fagan McManus, P.C., today for an initial case review, and let us help you build a brighter future.
When an employment relationship ends, an employer and employee may execute a severance agreement, which constitutes a legal contract outlining the terms of the employee’s departure from the company. Severances typically provide departing employees with compensation packages and other benefits in exchange for releasing any legal claims they may have against the employer upon their departure. Employers often like severance agreements because they can provide a “clean” end to a worker’s employment. Employees can also benefit from severance packages by obtaining financial compensation and benefits that can tide them over until they find their next job.
In the event your Farmington Hills employer tells you your job is ending—or even when you sense termination is coming—they may push a severance agreement in front of you to control the terms of your departure. It may seem like a “take it or leave it” deal, but it isn’t. You have the right to negotiate, challenge unfair terms, and make a counteroffer that better protects you. If your employer refuses to negotiate, you can speak with an experienced employment lawyer immediately to understand your options and safeguard your rights.
Furthermore, when an employer presents a worker age 40 or older with a severance that includes a release of age discrimination claims, the Older Workers Benefit Protection Act requires the employer to:
Furthermore, the Act also gives workers seven days to revoke any waiver of an age discrimination claim after signing a severance agreement.
A severance agreement can address any final issues that may exist between an employer and employee, including compensation, pending legal claims, or procedures for the employee’s departure. Some of the most common provisions addressed in severance agreements in Farmington Hills include the following.
Many severance agreements provide workers with some form of compensation as consideration for the agreement. An employer may agree to pay an employee a lump sum payment, typically as compensation to settle claims the employee has against the company, or may provide severance checks for a limited period after the employee’s departure. Severance compensation can provide workers with a financial cushion as they search for new employment.
A severance agreement may address an employee’s right to other non-wage/salary compensation, including equity awards, bonuses, or commissions. The agreement may vest an employee’s equity compensation or designate bonuses or commissions that the employer will pay out. A severance package can also address other unpaid benefits, such as paid time off or sabbatical leave.
A severance may also extend various employment benefits for a departing employee, such as health, dental, vision, or life insurance, either at the employer’s expense or through a COBRA plan.
Parties may negotiate releases of claims they have brought or may have against each other, such as an employee’s claims of discrimination, sexual harassment, workers’ compensation violations, FMLA violations, wage and hour violations, or retaliation. Employers may also release claims they may have against a departing employee, such as breach of contract or intellectual property misappropriation claims.
Severance agreements may include restrictive covenants for a departing employee, such as non-compete, non-solicitation, no-hire, and non-disclosure agreements. Restrictive covenants may prevent an employee from using the employer’s confidential information for a competitor’s benefit or from soliciting the employer’s customers to shift their business to a competitor.
A non-disparagement clause may require a departing employee to refrain from making negative comments about the employer or comments that others may perceive as disparaging the employer. Alternatively, a severance may include a mutual non-disparagement clause that requires both the employer and employee to “say nothing bad” about each other.
Employees may negotiate specific requirements or restrictions for the employer regarding references, such as requiring the employer to provide positive references or refrain from giving negative references if contacted by the employee’s future employers.
A severance agreement may also address the employee’s eligibility for a future position with the employer or its affiliates, parents, or subsidiaries.
Severances frequently include dispute resolution clauses, which may require parties to submit disputes arising out of the employment relationship or the severance agreement to mediation or arbitration. They may also involve choice of law or forum clauses designating the governing law for the agreement or the jurisdiction in which the parties must litigate any disputes.
Has your employer presented you with a proposed severance? If so, consider speaking with an employment rights lawyer serving Farmington Hills. They can help you by:
A good severance agreement can provide critical legal protection and financial support after you leave a job, while a bad one can negatively affect your rights and options for the future. Let an employment attorney from Fagan McManus, P.C. help you demand a positive agreement because:
If your employment in Farmington Hills is coming to an end, you need legal advice and counsel to negotiate a severance agreement that adequately protects you. Contact Fagan McManus, P.C., today for a confidential consultation with a severance agreements lawyer serving Farmington Hills, and let us help you prepare for a brighter tomorrow.
