Severance agreements come up when an employee leaves a company. These agreements offer a lump sum payment or extended benefits in exchange for waiving certain rights. They seem straightforward, but they can impact an employee’s ability to pursue a wrongful termination claim.
What employees should watch for
Employees should always look out for waivers of claims in severance agreements. These waivers typically list rights the employee gives up in exchange for the severance. If the waiver includes a release of wrongful termination claims, it may limit an employee’s ability to file a lawsuit later.
Situations where agreements don’t hold up
There are cases when severance agreements won’t affect wrongful termination claims. For example, if the agreement doesn’t follow California’s labor laws or if its creation came through pressure or misinformation, it may not be enforceable. Employers cannot use a severance agreement to hide illegal actions, such as discrimination or retaliation.
Timing matters when considering an agreement
Employees need time to review and understand severance agreements before deciding. Rushing through the process may lead to signing away important rights. In some cases, employers must give a set amount of time to consider the offer. This gives employees the chance to think about their options.
Evaluating your options carefully
When faced with a severance agreement, taking time to understand what’s at stake can make a big difference. Knowing how these agreements work and when to challenge them helps employees make informed choices. Staying aware of your rights means you can decide on the best path forward without feeling pressured.