When your employment ends due to layoffs, company restructuring, termination, or a dispute between you and your employer, your employer may present you with a severance agreement to govern your exit from the company. As the terms of this agreement can critically affect your rights and interests, you can protect yourself by working with an experienced employment law attorney who can help you negotiate a fair and favorable severance agreement with your employer. Contact Ramage Lykos, LLC for an initial case evaluation to learn more about severance agreements and get the advice and advocacy you need at this critical moment.
Has your employer presented you with a severance agreement at the end of your employment? If so, working with an experienced Pittsburgh employment law attorney can help you protect your rights and interests. Turn to the legal team at Ramage Lykos, LLC, to assist you with negotiating and drafting a severance agreement with your employer because of our:
We know that success in your legal matter requires understanding. Our attorneys take the time to listen to your situation and understand your concerns, needs, and goals to define tailored strategies and help you recognize the potential outcomes of your case. We evaluate the legal, financial, and personal implications of a proposed course of action to ensure we pursue the best path for you.
Our attorneys understand how waiting for legal advice can feel frustrating while negotiating a severance agreement. When you have little time to consider your choices during a negotiation, you need immediate responses. We make ourselves available by returning calls and messages promptly and leveraging cutting-edge technology to keep consistent communication with you, ensuring you always know your case’s status.
Our attorneys will work as hard as possible to secure the most favorable results for you. We recognize your trust in us and will not back down when advocating for your rights and interests.
A severance agreement is a contract that an employer and employee enter at the conclusion of the employee’s employment. Severance agreements outline the terms of an employee’s departure from a company to resolve any outstanding issues between the parties and prevent future legal conflicts or disputes. These agreements ensure that employers and employees understand their rights and obligations at and after the end of the employment relationship. Employers frequently use severance agreements with high-level managers or supervisors or employees with whom the employer has a current legal dispute, such as the employer’s disciplinary action against the employee or an employee’s harassment, discrimination, or wage-and-hour claim against the employer.
Severance agreements can benefit both employers and employees. Employers can benefit from having a managed, orderly termination of an employee, resolving current disputes with the employee, and avoiding future legal issues. Employees may benefit from severance agreements, including financial benefits that provide a cushion as they transition to their next job.
Employers should give workers presented with a severance agreement a reasonable amount of time to consider signing the agreement and to seek legal advice. Furthermore, for workers 40 and older, the Older Workers Benefit Protection Actrequires employers to give at least 21 days (45 days as part of a termination of two or more employees) to consider a severance agreement and advise workers of their right to seek legal counsel.
A severance agreement may include various provisions to address specific issues between an employer and an employee at the end of the employee’s employment. Topics commonly addressed by severance agreements include:
Severance pay: A severance agreement usually includes payments to the employee. The agreement can address payment of the employee’s final paycheck or compensation for unpaid bonuses, commissions, or unused PTO. The agreement may also pay additional compensation, whether as a lump sum payment or continued full or partial salary payments for a specific period.
Continuation of benefits: A severance agreement may provide a temporary continuation of employment benefits, such as health/dental/vision insurance, whether through COBRA or paid for by the employer.
Deferred compensation: Severance agreements can also address the disposition of an employee’s deferred compensation, including stock options, restricted stock units, or profit shares. The agreement may pay out an employee’s vested and unvested deferred compensation or cancel the employee’s unvested compensation.
Rehire eligibility: Depending on the circumstances of an employee’s termination, a severance agreement may expressly address whether the employee may seek new employment with the employee or its affiliates in the future.
Return of company property:Â Severance agreements can outline the procedure for an employee to return company property, such as documents, work phones, or laptops. Alternatively, the agreement may have the employee certify that they have no company property in their possession.
IP assignments: A severance agreement may require an employee to assign all rights to any intellectual property they developed during their employment and to cooperate with any transfers, assignments, or registration of such IP.
Release of claims: Severance agreements frequently include releases of claims, in which the employee or employer agree to release any claims they have brought or could have brought against one another. However, some employment laws may bar employers from including releases of claims under those statutes in severance agreements.
Non-disparagement:Â Parties may agree to refrain from disparaging one another. Employees may agree not to disparage the company to customers/clients, suppliers, potential employees, or the press. An employer may agree to refrain from criticizing the employee or providing a negative reference.
Confidentiality: Severance agreements may contain confidentiality clauses requiring employees to keep the employer’s proprietary information confidential. Confidentiality provisions may also require the parties to keep the terms of the agreement confidential.
Non-solicitation/non-compete: A severance agreement may include non-compete or non-solicitation provisions that bar the employee from launching or working for a competing business for a certain period within a specific geographic area or from soliciting the company’s employees or clients/customers for a particular period after the end of the employee’s employment.
If your employer has presented you with a severance agreement, you have the right to seek legal advice about signing the agreement and ask to negotiate a better offer. An experienced Pittsburgh employment law attorney from Ramage Lykos, LLC, can help you pursue an agreement that protects your interests by:
If you’ve been the target of harassment at work, you deserve experienced legal representation to demand accountability from your employer. Let an experienced employment law attorney with Ramage Lykos, LLC, advocate for your rights and interests. Contact us today for a confidential consultation to discuss your legal options for pursuing financial compensation and justice through a workplace harassment claim.
