12 Feb Severance Agreements – Be Careful What You Sign
I often get calls from people who, for various reasons, find themselves presented with a severance agreement when they are terminated or resign from employment. The severance agreements usually offer some nominal payment beyond the employee’s wages in exchange for a release of potential claims. In other words, the employer will give the employee money and in return, the employee agrees to give up any legal claims he or she may have against the employer.
What the employee may not realize, however, is that by signing the severance agreement, the employee may also be giving up the right to bring legal claims against the employer that the employee is not even aware exists at the time of signing. For instance, the employee may learn after signing the severance agreement that the employer’s real motivation for terminating the employee was discriminatory or unlawful retaliation. The severance agreement may prevent the employee from filing a lawsuit against the employer, even though the employee did not know that he or she was terminated for an unlawful reason.
It is important to review the severance agreement carefully. If you suspect that your employer acted unlawfully, it may not be in your best interest to sign the severance agreement. Ultimately, you will need to decide whether or not to sign the agreement, but seeking the advice of a labor and employment attorney before signing the severance agreement may be advisable. The Khadder Law Firm can assist you in evaluating whether you have a legal claim against your employer before you sign the agreement. In addition, the Khadder Law Firm can review your severance agreement to identify any potential red flags that should be addressed with your employer before signing the agreement. Contact the Khadder Law Firm today for a free initial consultation.