Severance Agreements and Wrongful Termination

When faced with a workplace termination, the last thing on your mind may be carefully reviewing legal documents. However, if your employer presents you with a severance agreement, taking time to understand its implications could be one of the most important decisions you make. A severance agreement is a legal contract that typically provides financial compensation in exchange for waiving your right to sue your employer. While these agreements can offer immediate financial relief, they may also prevent you from pursuing valid wrongful termination claims.

The decision to sign or reject a severance agreement requires careful consideration, especially if you suspect your termination was unlawful. Understanding how these agreements impact your legal rights is essential to making an informed choice that protects your interests.

At Olivier & Schreiber PC, our experienced employment attorneys have helped numerous employees navigate these kinds of complex decisions. We understand the often-delicate balance between securing immediate financial support and preserving your legal rights for the future, and we can help you determine your next steps.

How Severance Agreements Can Block Wrongful Termination Claims

Severance agreements are often written to include a “release of claims” provision that prevents you from filing lawsuits against your employer. This waiver typically covers legal actions such as wrongful termination claims or discrimination and harassment allegations.  

Once you sign the agreement and accept the severance payment, pursuing these claims becomes extremely difficult, if not impossible. The financial compensation you receive through severance may be significantly less than what you could recover through a successful wrongful termination lawsuit.

Other Times When Signing a Severance Agreement May Not Be in Your Best Interest

The Severance Package Is Inadequate or Limiting

The presented offer may fall below market standards, providing a severance package that does not align with typical industry or position-level expectations. Additionally, restrictive post-employment terms, such as overly broad non-compete or non-solicitation clauses, could significantly limit future career opportunities.

You Lack Proper Legal Review

The agreement may include legal language that is difficult to understand without legal experience, making it challenging to fully grasp its implications. Additionally, you may face time pressure from your employer, who might rush you to sign without giving you enough time to review the terms or seek proper advice.

The Value of Professional Legal Counsel

An experienced employment attorney can help you:

• Analyze the Severance Offer: Determine if the compensation is fair given your circumstances, identify problematic clauses that may harm your future prospects, and negotiate better terms when possible
• Evaluate Your Potential Claims: Assess whether you have grounds for wrongful termination, discrimination, or harassment
• Make an Informed Decision: Weigh the certainty of severance against the possibility of greater recovery through litigation

Caution Now Can Protect Your Rights for the Future

If you are considering accepting a proffered severance agreement, time is often of the essence. Employers may impose deadlines for acceptance, and certain legal claims have strict filing requirements. Taking prompt action ensures you have the opportunity to evaluate your options thoroughly.

We understand that losing your job can be an emotionally and financially challenging time. Our compassionate approach ensures you receive not only quality legal guidance but also the support you need during this difficult period. Whether negotiating better severance terms or pursuing wrongful termination claims, we are committed to helping you achieve the best possible outcome for your situation.

Do not let a hastily signed severance agreement prevent you from seeking the justice you deserve. Contact Olivier & Schreiber PC today to discuss your situation with our experienced wrongful termination attorneys and protect your legal rights as you move forward.