Severance Agreements: To sign or not?

Many employers offer departing employees money or benefits in exchange for a release or “waiver,” of liability for all claims connected with the employment relationship, including discrimination claims under the civil rights laws enforced by the Equal Employment Opportunity Commission (EEOC).

Employers want to keep from getting sued be departing employees, so these waivers can be very important to them, even if they make it sound like these are "just a few minor papers you need to sign" to close out your job and get a check.

While it is common for senior-level executives to negotiate severance provisions when initially hired, other employees typically are offered severance agreements and asked to sign a waiver at the time of termination.

When presented with a severance agreement, many employees wonder: Is this legal? Should I sign it?

The EEOC has posted some guidance on this issue to help workers recognize some of their rights and potential pitfalls that can arise from signing severance agreements without enough information.

This guidance is only general information, and if your company offers you a severance agreement, you would be well advised to seek legal counsel for your particular situation.

More information about severance agreements is also available on a previous Hot Button post, Severance Agreements: What Workers Should Know.

Source: See the EEOC's Guidance on Understanding Waivers of Discrimination in Employee Severance Agreements.

Laid Off? Picking Up the Pieces

Picking Up the Pieces When You Find Yourself Jobless . .

is a great article by Rachel E. Pine. Here's a blurb:

"It's not fun. It's not easy. It's certainly not something people like to think about. But companies can and do go belly-up. Flop. Fold. Cease to exist. And other companies can and do lay off even their most loyal and talented employees. For the now formerly employed employee it's time to do some quick thinking and planning. Mourning with your co-workers may be cathartic, but it will only make you feel better for a couple of hours. After that you'll need to make some pretty quick decisions about medical coverage, severance, outplacement, recruiters, referrals and unemployment insurance. But relax, really. Things may be much better than you think."

Pine then hits seven specific steps the newly unemployed might consider, from ideas on medical coverage, to getting reimbursements for expenses, to gathering information for unemployment insurance. Take a look at her full article here, as originally found on Vault.com.

I would add to her tips that a good employment lawyer can be invaluable in helping workers to review severance agreements, negotiate favorable terms, avoid the potential pitfalls, and explain responsibilities and legal rights.

There is hope for a brighter future.