SEVERANCE AGREEMENTS
Negotiating Severance Packages in California: What California Employees Need to Know
Severance packages are often offered to employees when they leave a company, whether due to layoffs, restructuring, or mutual agreement. While severance is not required by law, many employers offer it as a goodwill gesture or to avoid potential legal disputes.
What Is a Severance Package?
A severance package typically includes a lump sum payment, continuation of benefits, or other compensation provided to an employee upon termination. The terms of a severance package can vary widely, depending on the circumstances of the termination and the company’s policies.
Key components of a severance package may include:
Severance Pay: A one-time payment or continuation of salary for a specified period.
Continuation of Benefits: Extended health insurance, life insurance, or other employee benefits.
Release of Claims: Prohibits the employee from brining claims against the company.
Non-Disparagement Clauses: Restrict the employee from making negative statements about the company.
Confidentiality Agreements: Clauses that prohibit the employee from disclosing company information.
It’s important to understand the terms of your severance package before agreeing to it, as signing may waive certain legal rights.
How to Negotiate a Severance Package
Negotiating a severance package involves understanding your rights and the value of what is being offered. Here are some tips:
Evaluate the Offer: Consider the financial compensation, benefits, and any restrictions imposed by the severance agreement. Severance packages can vary across industries and job positions. Typically the severance offer should take into account an employees years of service at the company and their job position.
Understand Your Leverage: If you have potential legal claims against your employer, such as wrongful termination, you may have leverage to negotiate a better severance package. Sometimes potential claims can provide an employee with significant leverage.
Consider Legal Counsel: An experienced attorney can help guide your negotiations so that you can protect your interests and ensure you receive fair compensation. There are no magic words to convince your employer to provide you with a better severance package. However, in addition to helping you understanding your potential leverage, an attorney provide valuable strategic guidance in how to approach negotiations.
Severance negotiations can be difficult to navigate alone. Consulting with an employment lawyer can help you secure a favorable outcome.
Why You Should Consider Speaking to an Attorney
Most severance agreements are straightforward. However, some severance agreements can have long-term implications for your career and financial well-being. An experienced attorney can help you understand the terms of your agreement and negotiate for better terms if necessary.
If you have been offered a severance package, you should weight your options and consider speaking with an attorney.
Consider Hiring Shabbar Law
At Shabbar Law we offer an upfront flat-rate fee and can schedule a severance review consultation within 24 to 48 hours. The consultation consists of a review of your severance agreement and a video conference meeting to discuss your severance agreement and discuss your potential options, including how to best negotiate with your employer. Both the review and meeting are conducted with attorney Sean Shabbar.
As a previous defense attorney, Sean Shabbar has experience drafting, reviewing, and negotiating severance agreements on behalf of large companies. He uses that knowledge to help employees understand their severance packages and negotiate with confidence.
Text us at (916) 999-5412 today to schedule a review of your severance agreement.