A Los Angeles Severance Agreement Attorney Will Help You Exit With Dignity
A severance agreement is an agreement between an employee and their employer. It involves the terms on which the employee will leave his or her position. Severance agreements are different than severance pay. It contains the payment of all earned but unpaid wages that an employee has accumulated at the time of his or her termination. There are circumstances under which an employee is given additional compensation to sign a severance agreement. In order for these contracts to be valid, they must be entered into willingly. You should never be under duress, threatened or blackmailed into signing the agreement. You should also never be misinformed about the terms of your agreement. Yadegar, Minoofar & Soleymani LLP (YMS) knows employment laws and may be able to help you in this time of difficulty.
Typically, this type of severance agreement is received as a result of retirement or being laid off, but it is sometimes provided when an employee resigns. An agreement is drawn between two or more people, typically the employee and their employer. In the agreement, specifications are made as to how the employee will conduct themselves with regard to their former employer, and in turn, the business agrees to compensate the employee. Compensation can include but is not limited to, additional pay, payment for earned but unused vacation time, health insurance, stock options, and 401k benefits. Employers use severance agreements to safeguard against being sued by former employees or having them seek further compensation after they are no longer with the company. They are also used to ensure that an employee will not share private information about the company with competitors post-employment.
Typical Provisions Included in a Severance Agreement in California
Severance agreements in California can vary widely depending on the circumstances of the termination and the negotiation between the employer and employee. However, some typical provisions that may be included in a severance agreement in California are as follows:
- Severance Pay: The agreement may include a lump sum payment or a series of payments that are made to the employee upon signing the agreement, as well as any other benefits that may be provided.
- Release of Claims: The employee typically agrees to release any claims or potential claims against the employer in exchange for the severance pay. This means that the employee agrees not to pursue legal action against the employer for any reason related to their employment or termination.
- Non-Disparagement Clause: The employee agrees not to make negative or disparaging comments about the employer or their products, services, or employees.
- Confidentiality Clause: The employee agrees to keep the terms of the agreement confidential, including the amount of severance pay, the reason for the termination, and any other information related to the employment or termination.
- Non-Competition and Non-Solicitation Clauses: The employee may agree not to compete with the employer for a certain period of time or to solicit clients or employees of the employer.
- Return of Property: The employee agrees to return any company property, including laptops, cell phones, and other equipment.
- Reference Letter: The employer may agree to provide a positive reference letter to the employee upon request.
It is important to note that the terms of a severance agreement can be negotiated, and an employee should review the agreement carefully and seek legal advice before signing.
Why Consult with an Experienced Los Angeles Severance Agreement Attorney?
It is important to understand the terms of any employment agreement that you are asked to sign, and to seek legal advice if you have concerns about its enforceability or restrictions. An experienced Los Angeles severance agreement attorney from our law firm can help you with a severance agreement in several ways:
- Review the Agreement: We can review the severance agreement and explain its terms and conditions to you. We can also advise you on the enforceability of the agreement based on applicable state and federal law.
- Negotiate the Agreement: If you are negotiating a severance package or considering signing a severance agreement, we can help you negotiate the terms of the agreement to ensure that they are reasonable and protect your interests.
- Advise on Legal Rights: We can advise you on your legal rights and whether you may have any claims against your employer. We can help you determine whether the severance package is fair and reasonable given your circumstances.
- Challenge the Agreement: If you believe that the severance agreement is unfair or contains illegal provisions, we can challenge the agreement on your behalf. We can negotiate a modification of the agreement, or pursue legal action if necessary.
- Provide Representation: If you need to take legal action against your employer, such as filing a complaint with a government agency or filing a lawsuit, we can provide representation and advocate for your rights.
Contact a Los Angeles Severance Agreement Attorney and Receive a Favorable Exit Package
In some cases, additional severance pay is included in the hiring contract. Coercing an employee to sign an agreement not to sue for this compensation is unlawful. The employee is owed the money. An employee must pay it regardless of the conditions being presented at termination. It is important that you understand the terms of the contract that you are signing. This will prevent you from unintentionally breaching the contract. Seeking the advice of an attorney is advisable, contact YMS and we will ensure that you are getting the most out of your severance package.