Severance Agreements
What You Need To Know About Severance Agreements
Although employers are not required to pay you severance pay when you leave the company, many employers offer severance agreements. These agreements provide you with a financial package in exchange for a release of any legal rights you may have.
Legal Considerations And Employee Rights In California
California law provides important protections when reviewing severance agreements. While you may waive certain rights by signing, some rights, including claims for workers’ compensation benefits and unemployment insurance, cannot be waived. The agreement must give you adequate time to review the terms – 21 days if you are an individual employee or 45 days if you are part of a group termination.
Common Elements Of Severance Agreements
Severance agreements often include:
- Nondisclosure provisions limiting your ability to discuss the agreement terms
- Release of claims against the employer
- Return of company property requirements
- References and future employment provisions
- Tax implications and timing of payments
Each of these clauses can significantly impact employees’ future opportunities and legal rights. This underscores the importance of a careful review from a reputable lawyer like ours.
Steps To Take Before Signing A Severance Agreement
Before signing your agreements:
- Read the entire document carefully
- Calculate the full value of the offered package
- Understand which claims you are releasing
- Review your personnel file and gather relevant documents
- Consider your future employment prospects
- Note any deadlines for accepting the offer
Even if this already seems like a lot to deal with, there are legal channels you can use. Thankfully, we are just a call away to help protect your legal rights through specific legal strategies.
Frequently Asked Questions About Severance Agreements In California
We have provided legal answers to some of the most important questions clients ask.
Can I negotiate the terms of my severance agreement?
Yes. Many terms in severance agreements are negotiable, including the payment amount, continuation of benefits and reference provisions.
Will accepting severance affect my unemployment benefits?
Severance pay does not prevent you from receiving unemployment benefits in California, but it may delay when you can start collecting them.
What happens if I violate the agreement?
Violating a severance agreement could require you to return the severance pay and face potential legal action. However, certain protected activities, such as filing government complaints, cannot be restricted regardless of the agreement terms.
We frequently review severance agreements where we explain what claims you are giving up. We often are able to negotiate a much higher financial package for our employee clients. Call Anticouni & Ricotta at 805-699-5968 or contact us by email.