Losing your job may be a very difficult incident for anyone. In these circumstances, your company could provide you with a severance check to lessen the financial strain of losing your job. To be assured you are getting an equitable offer, you should speak with a severance agreement attorney before collecting any severance compensation. As you read on, we will give an in-depth account of severance agreements along with why you should have an attorney evaluate them.
A Severance Agreement: What Is It?
Employees are frequently given severance pay after their employment ends. Typically, it is determined by the amount of time that a person has worked and is still eligible for. Severance compensation is not mandated by the Fair Labor Standards Act (FLSA).
An employer and a worker (or the employee’s agent) must agree on the terms of severance compensation. An employee who did not get severance benefits under their employer-sponsored plan may be permitted to get help through the Employee Benefits Security Administration (EBSA).
Why Do Businesses Provide Severance Packages?
There are several reasons why employers provide severance payouts. Compensating workers who have to forfeit their jobs is one reason. Severance agreements can also shield companies from future legal claims made by terminated workers. Employers may also provide severance compensation to entice early retirements or voluntary resignations.
What are the Severance Agreement’s Common Terms?
The circumstances surrounding the employer and the specifics of the separation, a severance agreement’s provisions might differ. However, a few terms are as follows:
- How much severance money the employee will get
- Any ongoing health insurance coverage’s duration
- The dismissal of any complaints versus the employer in court
- Confidentiality and non-disparagement provisions
- Non-solicitation and non-compete clauses
- Repossession of corporate property
Why Do You Need an Attorney for a Severance Agreement?
The best choice for a lawyer to analyze your severance agreement is an employment law attorney. It’s helpful if the lawyer’s website states that they provide severance package evaluation services. Verify that the lawyer specializes in defending workers rather than employers.
An employment law professional may help you determine your worth and make sure the severance package fairly compensates you for it. Additionally, they will be highly knowledgeable about the law, ensuring that the terms of the package comply with the law. If you feel uncomfortable participating in the negotiations yourself, they will be able to speak out for you and act as your voice.
What should I do if my company failed to provide me with my benefits and severance money as specified in the severance pay agreement?
If the Employee Retirement Income Security Act (ERISA) governs the severance plan, a plan member must utilize administrative options by timely submitting a claim rejection within 60 days, and if the appeal is rejected, they must file a lawsuit. ERISA regulates private sector pension plans and, to a limited scope, employer-provided health (such as medical insurance) and welfare (such as gym membership) programs. In broad terms, ERISA does not apply to religious plans or plans for government employees.
If the severance package is not covered by ERISA, then claiming for benefits (“wage claim”) may be made in court (which includes small claims court if the claim amounts to under $10,000) or with your state’s Division of Labor Standards Enforcement (commonly referred to as the Labor Commissioner).
How to Choose an Experienced Attorney for Severance Agreements?
Navigating the choices available while looking for a severance agreement attorney may be intimidating. When selecting the best attorney for your case, there are a few pointers you may follow. First and foremost, it’s crucial to select an attorney with skills in employment law and a track record of success in structuring severance packages. You may also learn about a lawyer’s reputation and dependability by reading reviews and recommendations from previous clients.
An appointment with the attorney is necessary to go through your case and get a sense of how they will communicate with you and approach the situation. Additionally, think about their fees and whether a contingency fee arrangement is available. Lastly, deal with an attorney who you feel at ease with and who is aware of your needs and goals to guarantee a positive outcome.
What Alternatives are Available to the Execution of a Severance Agreement?
A severance agreement might not be the best choice for both parties in every situation. There are quite a few options available, such as negotiating another sort of agreement, complaining to a government agency, taking legal action, or using mediation or arbitration. To decide the appropriate course toward resolution for your unique circumstance, you must consult with a knowledgeable attorney.
Hire An Attorney From Abdi & Associates For A Severance Agreement
You can negotiate an equitable severance payout and navigate the complex realm of employment law with the aid of a severance agreement attorney. See to it to select a lawyer with experience and an excellent track record when searching for one. Although negotiating a severance agreement can be difficult, you can get a better deal with the proper strategy and legal representation.
We at Abdi & Associates have the ability to analyze your severance agreement and provide you with an independent assessment of whether it has any legal flaws or drawbacks. Call (888) 772-2529 or message us through our form to schedule a free initial consultation with one of our skilled attorneys for your case. We’ll stand up for your rights and advocate your cause.