Severance agreements are not required in California but many companies offer them to employees in employment contracts or use them as a way to uphold non-compete and/or other agreements prohibiting you from taking legal action against them. Negotiating a severance agreement that provides adequate compensation and benefits while upholding your rights is critical and an experienced lawyer can help you achieve your goals. For those inexperienced with employment law issues, it is difficult to discern whether a severance package is in your best interests. The terms and conditions of these agreements are extremely important, especially if you feel that you have been subjected to discrimination and/or harassment during the course of your employment.
If you were terminated, laid off, or fired, you are still owed overtime if your duties were primarily non-exempt. DO NOT SIGN A SEVERANCE AGREEMENT without consulting our office first. If you sign a severance agreement as part of a layoff you may be waiving your right to make a claim for overtime or discrimination, amongst other claims. Typically, companies include a “general release” in severance agreements, such that once you sign, you may be waiving your right to bring any future legal claims against the company.
Contact our office immediately if you are asked to sign a severance agreement or general release as a result of a layoff or termination.