Severance agreements are often presented to employees during layoffs or terminations as a way to provide compensation in exchange for waiving certain legal rights. While these agreements may seem straightforward, they can have significant legal implications that are not immediately apparent. You should know when it might be wise to hold off on signing a severance agreement in California, as doing so without thorough consideration could lead to unfavorable outcomes.

👉Lea también: Essential Factors to Keep in Mind When Negotiating a Severance Agreement

Case 1: When You Have Not Reviewed the Agreement Thoroughly

Severance agreements are legal documents that can include complex language and clauses that may not be immediately clear. Rushing to sign without fully understanding the terms can have serious consequences. The agreement might contain hidden clauses, such as non-compete or confidentiality agreements, which could limit your future employment opportunities or expose you to legal risks.

Legal Tips

• Take the time to read the entire document carefully.
• Pay special attention to any clauses that seem ambiguous or overly restrictive.
• Seek legal counsel. An experienced employment lawyer can help decipher the legal jargon, identify potential issues, and advise you on the most appropriate course of action.

Case 2: When the Compensation Package is Inadequate

The severance package offered may seem generous at first glance, but it’s essential to evaluate whether it truly reflects what you’re entitled to, especially in light of your tenure, role, and industry standards. An inadequate severance package may not provide sufficient financial support during your transition to new employment.

How to Evaluate

• Compare the offered severance with industry standards for your position and length of service.
• Consider all aspects of the package, including benefits continuation, bonuses, and unused vacation days.
• If the package is lacking, don’t hesitate to negotiate for better terms. Employers often expect some level of negotiation and may be willing to improve the offer if approached professionally.

Case 3: When You Suspect Unlawful Termination

If your termination feels unjust or you suspect it might be linked to discrimination, retaliation, or another unlawful reason, signing a severance agreement immediately could waive your rights to pursue legal action. California law protects employees from wrongful termination, and you may have grounds for a lawsuit if your dismissal violated these protections.

Signs of Unlawful Termination

• If you were terminated shortly after filing a complaint or claim (e.g., for workplace harassment or discrimination).
• If you notice a pattern of unfair treatment compared to other employees in similar situations.
• Sudden changes in your performance reviews or job responsibilities before your termination.

Legal Tips

• Hold off on signing the agreement until you’ve consulted with an employment lawyer who can assess the circumstances of your termination.
• Document any evidence that supports your suspicion of wrongful termination, such as emails, witness statements, and performance reviews.

Case 4: When Non-Compete Clauses are Unreasonable

Non-compete clauses in severance agreements can restrict your ability to work in your field for a certain period after leaving the company. In California, non-compete agreements are generally unenforceable, but some employers still include them in severance packages.

What are Non-Compete Clauses

• These clauses might prevent you from taking a job with a competitor or starting your own business in the same industry.
• While California law generally voids such clauses, they can still create complications if included in your severance agreement.

Steps to Take

• Carefully review the non-compete clause to understand its scope and duration.
• Consult with a lawyer to determine whether the clause is enforceable and to discuss strategies for negotiating its removal or modification.

Case 5: When You are Unsure About Future Employment Opportunities

The job market, particularly in specialized fields, can be unpredictable. Before signing a severance agreement, it is important to consider your future employment prospects and whether the agreement might affect them.

Considerations

• Assess the current job market in your industry. If opportunities are scarce, you may need a longer severance period or additional support, such as outplacement services.
• Think about how the severance agreement might impact your ability to secure new employment, especially if it includes restrictive covenants like non-compete clauses.

Legal Tips

Use the time before signing the agreement to explore potential job opportunities and consider how long it might take to secure a new position.

• Discuss with your lawyer how the severance agreement might be negotiated to provide better support during your transition, such as extended benefits or a lump-sum payment.

👉Lea también: Top Reasons to Hire a Pasadena Severance Negotiation Lawyer for Your Severance Package

How Our California Employment Attorneys Will Negotiate a Fair Severance Agreement on Your Behalf

When faced with the prospect of job termination, it is essential to ensure that your severance agreement is fair and provides you with the financial security and benefits you deserve. At Hershey Law, our experienced severance negotiation attorneys are committed to advocating for your rights and securing the most favorable outcome. Here’s how we will negotiate a fair severance agreement on your behalf:

Thorough Review and Analysis of the Severance Agreement

Before initiating any negotiations, our attorneys will conduct a detailed review of your severance agreement and address your questions, such as “Do you get severance if you get fired?” We will identify any potentially unfavorable terms, such as inadequate compensation, overly restrictive covenants, or clauses that could limit your future employment opportunities.

Key Actions

• Examine the financial compensation package detailed in your employment contract, including severance pay, bonuses, and benefits.
• Review restrictive covenants like non-compete or non-disclosure agreements to ensure they are reasonable and enforceable under California law.
• Analyze the agreement for any clauses that may waive your legal rights, ensuring that you retain the ability to pursue further legal action if necessary.

Assessment of Your Unique Situation

Every employment situation is unique, and so are the circumstances leading to your severance. Our attorneys will assess your specific situation, taking into account factors such as your tenure, role within the company, and the reasons for your termination. This comprehensive understanding enables us to tailor our negotiation strategy to your needs.

Key Actions

• Evaluate your employment history and contributions to the company to justify the need for a more favorable severance package.
• Consider any potential claims you may have, such as wrongful termination, discrimination, or retaliation, which could strengthen your negotiating position.
• Identify any gaps or inconsistencies in the employer’s rationale for your termination that could be leveraged during negotiations.

Strategic Negotiation with the Employer

Armed with a thorough understanding of your severance agreement and unique circumstances, our California employment lawyers will enter severance negotiations with your employer. We will advocate aggressively on your behalf to secure a severance package that reflects your value and protects your future.

Key Actions

• Negotiate for higher severance pay, extended benefits, and any additional compensation you may be entitled to, such as unused vacation or sick leave.
• Push for the removal or modification of any restrictive covenants that could hinder your ability to find new employment or start your own business.
• Ensure that the severance agreement includes provisions for continued health insurance coverage, outplacement services, or other benefits that will ease your transition to new employment.

Protecting Your Legal Rights

Throughout the negotiation process, our priority is to protect your legal rights in accordance with the state or federal law as well as the employment contracts. We will ensure that the severance agreement complies with California employment laws and does not contain any provisions that could waive your right to pursue legal claims in the future.

Key Actions

• Advise you on the legal implications of signing the severance employment agreement and any potential risks involved.
• Negotiate for language in the agreement that allows you to retain the right to pursue legal claims, particularly if you suspect wrongful termination or other unlawful actions by your employer.
• Ensure that any release of claims you agree to is limited in scope and does not prevent you from pursuing claims that may arise after the agreement is signed.

Providing Ongoing Support and Guidance

Negotiating a severance agreement can be a stressful and uncertain process, but you don’t have to go through it alone. The employment law attorneys at our dedicated California employment law firm will provide ongoing support and guidance, keeping you informed at every step of the negotiation and ensuring that you fully understand your rights and options.

Key Actions

• Offer clear and transparent communication throughout the negotiation process, explaining each step and what to expect.
• Provide personalized advice on whether to accept the final severance offer or continue negotiations.
• Support you in making informed decisions and offer legal advice on employment disputes, sexual harassment, gender identity (sexual orientation) discrimination .

Secure Your Future with an Experienced Pasadena Severance Negotiation Attorney

When it comes to negotiating your severance agreement, you deserve a team that will stop at nothing to protect your rights and secure the compensation you deserve. At Hershey Law, our fearless Pasadena severance negotiation lawyer is equipped to take on large employers and their insurance companies. We understand the complexities of severance agreements and the importance of ensuring that your departure from a company is handled with fairness and respect.

¿Por qué elegir la ley de Hershey?

• High-Powered Legal Representation: At Hershey Law, we don’t just represent you; we fight for you. Our team of seasoned attorneys has a proven track record of successfully negotiating favorable severance agreements, helping employees across California achieve positive financial outcomes.
• Millions Recovered for Employees: With over eight years of dedicated service, Hershey Law has recovered millions of dollars in compensation for employees who have faced unfair treatment. Our strategic approach and deep understanding of California employment laws ensure that no detail is overlooked in securing the most advantageous deal for you.
• Fearless Advocacy: We fearlessly take on even the most challenging cases, going head-to-head with employers to defend your rights. Whether you need help reviewing your severance package, negotiating better terms, or ensuring that your legal rights are protected, our team is here to stand by your side every step of the way.

Take Action Now – Protect Your Rights

Don’t sign your severance agreement without first consulting with our proven and capable attorneys at Hershey Law. During an initial case evaluation, you can get the advice you need to make informed decisions about your severance package. Let us review your agreement, identify any potential issues, and negotiate on your behalf to secure a package that truly reflects your contributions and protects your future. To schedule your free consultation, call us at 310-929-2190 o contáctenos en línea.