Severance Agreement Review

Have you dedicated years of loyal service to a company that is now presenting you with a severance package? You’re not alone. Each year, thousands of Americans are let go, forced into early retirement, or offered severance packages that appear on the surface to be generous. The Law Office of Delmas A. Costin, Jr. can perform a severance agreement review on the offer your employer made and determine if it’s in your best interests to accept the agreement.

What is a Severance Agreement?

A severance agreement is a contract between an employer and an employee in which an employee waives their right to file a lawsuit against their employer in exchange for monetary compensation over the course of a few months to a year.

How an Attorney Can Help With a Severance Agreement Review

Severance offers can be used to take advantage of loyal employees, especially those who are older and have dedicated sometimes decades of their lives to a company. The severance offer provides payments over a period of time, but if you’re laid off, your employer is required to provide you with unemployment benefits regardless.

Before you sign any agreement with your employer, you should have an employment attorney look over the agreement to ensure that it’s fair to you. Often, employees aren’t sure whether the offer they’re receiving is fair or not. This allows employers, who are consulting with attorneys, to offer unfair severance packages in the hopes the employee won’t bother fighting.

We Will Review Existing Employment Agreements

When you first began your employment, did you sign an employment agreement? Did your employer make verbal promises considering severance? Does your employee handbook mention severance agreements?

Even in cases where there is no written agreement, an attorney may be able to find evidence from promises made to you or other employees or agreements that may have been mentioned in the employee handbook. The first step in the process is to review any and all commitments your employer made to you when you began at their company and to determine if the severance offer is living up to their promises. 

Since so many employees will take the agreement without reviewing the terms, it often behooves employers to make unfair offers in the hopes the employee won’t know they can fight the offer. Our NYC employment attorneys can ensure you aren’t accepting a bad offer.

We Will Help You Negotiate a Fair Severance Agreement

Some employees will be presented with severance agreements that look good on the surface, at least moneywise, but the agreement will contain a non-compete provision severely limiting your ability to find new employment. If your employer expects you to sign a non-compete agreement that will prevent you from seeking out new employment in your field for a period of time, then their severance offer should reflect the fact that you are agreeing not to seek other employment for a time. In other words, your employer should have to pay for requesting a non-compete. 

If you sign the agreement simply to collect your final check, you won’t have another chance to go back and negotiate the matter. Even if you plan on retiring, a non-compete clause is a powerful bargaining chip in the process of negotiating your settlement. You deserve to be paid for it.

Employment Discrimination and Severance Agreements

Age discrimination is one of the most common complaints when it comes to severance agreements. Employees feel like they’re being forced out because executives want to put their own people into key positions or think that having a younger workforce will improve their situation. In other cases, they are hoping to reduce the company’s overhead when it comes to employee expenditures.

Older staff, especially those who have been with a company for decades, may have accumulated raises over the years that are now considered an unnecessary expense. Their boss may tell them that their position has been eliminated, and they are being laid off, but later, the employee finds out that they’ve been replaced by someone much younger with a fraction of the skill set. 

If you sign a severance agreement, you are waiving your right to file a lawsuit against your employer, so you should be very certain that the agreement is the best one you can get.

Our Employment Attorneys Perform Severance Agreement Review

In addition to the aforementioned services, our attorneys can help ensure you receive all monies owed by your employer, determine how your termination affects your pension and retirement accounts, and ensure you aren’t being left without health insurance after you sign the agreement. Before you sign anything, call the employment attorneys at The Law Office of Delmas A. Costin, Jr., and let us perform a severance agreement review.

 

Frequently Asked Questions

Q1: What is a severance agreement?
A1: A severance agreement is a formal contract between an employer and an employee. In this agreement, an employee agrees to waive their right to pursue legal action against the company. In return, the employer provides financial compensation, typically paid out over a period ranging from a few months to a year, as well as other potential benefits.

Q2: Why should I have an attorney review my severance agreement?
A2: It’s crucial to have legal counsel review your severance package because these offers can sometimes be structured to benefit the employer more than you. An attorney ensures your rights are protected, helps you understand all terms and conditions, and advises whether the offer truly reflects fair compensation and benefits, preventing you from unknowingly giving up valuable entitlements.

Q3: What does a severance agreement review entail at D.A. Costin Law?
A3: Our review process involves a thorough examination of the severance package offered by your employer. We analyze all terms, conditions, and financial aspects to ensure they are fair and in your best interest. Our goal is to determine if the agreement adequately protects your rights and provides appropriate compensation, especially concerning any waived legal claims.

Q4: Who typically needs a severance agreement review?
A4: Individuals who have dedicated significant years of service to a company and are now being laid off, offered early retirement, or presented with a severance package often need this service. We assist employees who want to understand their options and ensure they are not taken advantage of during a difficult career transition.

Q5: What should I do before signing any severance agreement?
A5: Before committing to any severance agreement, it is highly advisable to seek legal counsel. Our attorneys can help you fully understand the document’s implications, including what rights you might be waiving and whether the compensation is equitable. Consulting an expert ensures you make an informed decision that protects your future interests.

Q6: How can I contact The Law Office of Delmas A. Costin, Jr. for assistance?
A6: You can easily reach out to our team at The Law Office of Delmas A. Costin, Jr. to discuss your severance agreement. We encourage prospective clients to contact our attorneys directly via phone or by filling out the contact form on our website to schedule a consultation and get started.