Severance Agreement Lawyer Grand Rapids, MI

Have you decided to leave your job in Grand Rapids, or has your employer announced its intention to fire you or lay you off? As part of the end of your employment relationship, your employer may present you with a severance agreement. A severance package can include money to tide you over as you look for your next job, but it can also place professional restrictions on you for months or years to come. As such, you need experienced guidance to protect your rights and interests.

Contact Fagan McManus, P.C., for an initial case evaluation with a severance agreements attorney serving Grand Rapids. Let us protect your rights and negotiate for the fair agreement you deserve.

Understanding Severance Agreements

Employers and employees may enter severance agreements at the end of an employee’s employment to:

Govern the employee’s discharge
Resolve outstanding legal issues between the employer and employee
Establish the parties’ respective post-employment rights and responsibilities

In some cases, these agreements may be negotiated ahead of time, particularly with executives or other high-level employees. Alternatively, an employer may offer an employee a severance agreement as compensation for terminating the employee as part of a restructuring or lay-off. These agreements can also be useful when an employee leaves because of a dispute, such as over unpaid wage or discrimination claims.

Severance agreements can benefit employers by providing finality to the employer-employee relationship, especially when an employee departs under less-than-amicable circumstances. However, employees can also benefit from severance agreements by receiving additional compensation at the end of or for a period after their employment, which can provide a financial cushion as they look for their next job.

Key Components of Severance Agreements

A severance agreement will address various aspects of the end of the parties’ relationship, such as:

Severance pay: As consideration for entering a severance agreement, an employer usually agrees to provide compensation to the departing employee. Severance pay may include a lump sum payment that acts as a settlement payment in the event that the end of the employment relationship is the result of a dispute. Alternatively, severance may continue full or partial salary or wage payments for a limited period after the employee’s discharge. Severance pay can provide employees with a financial buffer until they find new employment.
Continued benefits: Severance agreements may also entitle employees to continued employment benefits, such as health insurance. The agreement may govern the employee’s right to purchase continued benefits through COBRA. Alternatively, the employer may agree to pay for continued benefits for an employee for a limited period after the end of their employment.
Disposition of retirement/pension benefits or equity, deferred, or contingent compensation: A severance agreement may address what will happen to an employee’s other compensation or benefits, such as the employee’s right to future commissions or bonuses, the vesting or cancellation of equity compensation like stock options, and the disposition of the employee’s retirement or pension funds or benefits.
Release of claims: Severances frequently include releases of claims, under which the employee or employer agrees not to pursue any legal claims they may have against the other. Employers may insist on including releases in severance agreements when an employee has already filed or may file a legal claim or a union grievance.
Restrictive covenants: Severance agreements may include restrictive covenants binding the employee, such as non-disclosure, non-solicitation, and non-compete agreements.
Confidentiality: Employers and employees may agree to keep the terms of their severance agreement confidential through a confidentiality provision.
Non-disparagement: A severance agreement may include non-disparagement clauses, which require an employee to refrain from publicly disparaging the employer or require an employer to refrain from giving a negative reference for the employee.
Rehire eligibility: Severance agreements can address a departing employee’s eligibility to apply for another position with the employer or its affiliates.
Alternative dispute resolution: Many severance agreements include alternative dispute resolution clauses that require the parties to submit any future disputes they have to mediation or arbitration.
Choice of forum and law: Severance agreements can include provisions mandating the parties to litigate any disputes in a specific state or court and requiring a court or arbitral forum to interpret and enforce the agreement under particular state or federal laws.

Employee Rights with Severance Agreements

Employees have certain rights when employers present them with severance agreements at the end of the employee’s employment. Employers should provide employees with reasonable time to review a proposed severance agreement and to seek legal advice regarding the agreement. For workers 40 and older, federal law requires employers to give those employees at least 21 days to consider a severance agreement that waives the worker’s right to bring claims under the Age Discrimination in Employment Act or other federal employment laws. That deadline extends to 45 days in the event of a group termination. Furthermore, those workers have seven days to rescind their signature of a severance agreement.

Employees should also have the right to negotiate the terms of a severance agreement. When an employer pressures or coerces employees into signing severance agreements, it may undermine the validity and enforceability of those agreements.

How Can an Attorney Help You Negotiate a Severance Agreement?

The potential loss of a job is often a source of considerable stress, which makes it challenging to evaluate your options and rights once you’ve been presented with a severance agreement. An attorney from Fagan McManus, P.C. can help you protect your financial and professional interests as you evaluate a potential severance agreement by:

Sitting down with you to discuss the circumstances of your departure from your job and your needs, concerns, and goals for a potential severance agreement
Reviewing a proposed agreement presented to you by your employer to evaluate its terms and help you understand your rights and obligations under the agreement
Negotiating with your employer on your behalf to secure agreement terms that better serve your needs and objectives
Helping you make an informed decision about whether to sign a severance agreement, especially when an agreement includes waivers of claims you may have under state and federal employment law

Why Choose a Lawyer from Fagan McManus, P.C.?

A severance agreement can have significant consequences for your finances and career. That’s why you want to have the right attorney advising you and advocating for your interests during the negotiation process. Turn to an employment law attorney from Fagan McManus, P.C. to help you pursue a fair and favorable severance agreement with your employer because:

Our firm has a proven track record of demanding accountability from employers. We’ve faced companies ranging from small businesses to Fortune 500 corporations.
We will work hard to protect your rights and interests in a severance agreement with your employer.
Our attorneys strive to provide every client with the personal attention and dedicated support they need as they navigate the end of their employment.

Contact Our Firm Today for Guidance and Assistance

Has your employer in Grand Rapids presented you with a proposed settlement agreement? If so, you need experienced legal counsel to help you negotiate a fair and favorable deal. Contact Fagan McManus, P.C. today for an initial consultation with an experienced employment law attorney. We look forward to discussing the terms of any proposed severance agreements and advising you on your rights and options under the law.