Severance agreements are quite common in the modern employment contract. These serve a crucial role, as they protect both the employee and employer in case of unforeseen circumstances. Specifically, the employer is free to restructure, downsize, or layoff without fearing legal trouble, while the employee is financially compensated for the sudden job loss.
Unfortunately, not all severance agreements are built equal. According to an expert severance agreement lawyer Connecticut, employers may try to include clauses and waivers that unfairly benefit them. Identifying such agreements is essential, as the employee can then seek legal action.
Here are some of these key identifiers of unfair severance agreements, according to expert employment lawyers.
Purporting to Waive Existing Rights That Cannot Be Legally Waived
One common issue with severance agreements is the inclusion of clauses that attempt to waive existing rights that are legally protected and cannot be relinquished. For example, employees have certain rights under laws like the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA) that cannot be waived, even if both parties agree to do so in a severance agreement. An attorney can help the employee challenge such provisions, ensuring they retain their rights and protections under the law.
Saying It Waives Claims That May Arise in the Future
Another red flag in severance agreements is the inclusion of language that seeks to waive claims that may arise in the future. While it is common for severance agreements to waive existing claims, they should not attempt to release future claims that have not yet materialized. Such provisions can be highly detrimental to employees, potentially preventing them from seeking legal recourse for future wrongful actions by the employer. Employment lawyers carefully scrutinize severance agreements to ensure they do not contain overly broad waivers.
Not Following Special Rules for Older Workers
The Age Discrimination in Employment Act (ADEA) includes specific rules designed to protect older workers from age discrimination during employment termination. Severance agreements that do not comply with these rules can be deemed unfair. For instance, the ADEA mandates a 21-day consideration period for employees over 40 to review the agreement, along with a 7-day revocation period after signing. If an agreement fails to adhere to these stipulations, it may be considered invalid.
Including Overly Broad Non-Disparagement or Confidentiality Provisions
Non-disparagement and confidentiality provisions are common components of severance agreements, but they can be problematic if they are overly broad or restrictive. Such provisions may prevent employees from discussing legitimate workplace issues or participating in investigations. By ensuring that these provisions are reasonable and legally sound, attorneys can help maintain a balance between employer protection and employee rights.
Offering Inadequate Severance Pay or Benefits
The most apparent sign of an unfair severance agreement – inadequate severance pay or benefits. The compensation offered in a severance package should reflect the employee’s length of service, job role, and contributions to the company. Employment lawyers can evaluate whether the severance pay is commensurate with industry standards and the employee’s specific circumstances. If it falls short, an attorney can negotiate on behalf of the employee to secure a more equitable package.
Employers draft such unfair agreements due to a false sense of confidence. It is absolutely essential to challenge such unfairness, not just to seek justice but to hold the employer accountable. Before signing that severance agreement, give it another look. Check if something feels out of place, or if something is worded in confusing terms. It’s always worth your time to talk to an employment law expert, as that can save regret later down the line!
