Understanding the Function of a Severance Agreement Attorney
What Constitutes a Severance Agreement
A severance agreement is a legally binding contract between an employer and an employee, or former employee, where certain benefits are laid out and in return for those benefits the employee agrees to do something for the employer. More specifically, in the context of a typical severance agreement the employee waives his or her right to pursue any claims against the employer, as well as the right to file complaints with various government agencies. To the employer, these waivers reduce the risk of meritless lawsuits and also avoid the hassle and expense of litigation. What the employee usually receives in exchange is money up front or benefits of some sort , such as health insurance pay and a favorable job reference. All of these components combine to make up the often mysterious, yet familiar, document we call severance agreement.
Severance agreements are important because they provide employers with protection from employees who might otherwise attempt to bring frivolous legal action against them, possibly harming the employer along the way. From the employee’s perspective, depending on how favorable the terms are, the severance agreement may not be favorable at all. For example, in exchange for a release of claims, the employer may offer just one or two weeks of pay or benefits, which is obviously not appealing to an employee who may have just been wrongfully terminated or harassed.
The Importance of a Severance Agreement Attorney
There is a good chance that you are not familiar with any legal issues related to your situation. Although you may be an expert on your organization’s policies, you probably do not have experience with common law litigation. While this is understandable, it is also unfortunately the case, since this is where the issues are going to be in these matters.
What this means is that without having an experienced attorney on your side, you run the risk of settlement agreements (or severance agreements) that are not in your best interests. A good attorney will understand the standard practices in these types of agreements, which vary from state to state and allow you to get the protection or compensation you deserve for losing your job.
Although many people today will try to save as much as they can – because they are afraid that getting help from an attorney will be too costly – this is not the case when hiring an employment lawyer in Atlanta. Even if you are charged, cases that involve employment law are relatively low-cost and tend to be low-stakes, in terms of possible penalties.
On the other hand, if you take all this on yourself and make it harder to protect yourself by not hiring a good lawyer, you could end up paying much more than you should have simply by paying the retainer of a good attorney. These attorneys will review all termination agreement paperwork and make sure you explain everything clearly. They will also be able to negotiate for a better severance package for you, dodging the legal pitfalls that you might otherwise fall into.
Major Components of a Severance Agreement
Severance agreements can have a number of standard components. For one, severance payments must be addressed as it is critical for the business owner/employer to understand what obligations are owed to the former employee. Depending on the circumstances of the termination of employment, forms of alleged liability for which the former employee may be owed money will vary. For this reason, consult with an experienced severance agreement lawyer who can help identify all potential claims and develop an appropriate strategy to resolve them in a secure and lawful manner while employing the most effective form of strategy in each case. Other elements of an employee severance agreement that should be included are non-compete clauses that essentially prevent the employee from working for a competitor, or starting a similar competitor of your business. A confidentiality agreement is a separate but similar provision that prohibits releasing confidential information to others, trade secrets, or intellectual property. Often times a severance agreement may incorporate non-solicitation clauses that prevent the former employee from "poaching" customers, clients, or employees from your business.
Common Mistakes Found in Severance Agreements
Employees often fall into the trap of assuming that a severance agreement is set in stone or that all of its provisions benefit the employer. For example, if a severance agreement provides for a fixed amount such as 3 months pay, some employees assume that they are not eligible for any more compensation even if they find themselves out of work after the severance period expires. Likewise, employees will think that if a severance agreement requires an employee to release the employer from liability, the employee has no claims whatsoever against the employer after signing. Neither of these conclusions are necessary true. A good severance lawyer will be able to distinguish between those terms and provisions that are more or less ironclad and provide the best strategic advice in dealing with these issues.
How a Lawyer Can Improve Your Severance Negotiations
A lawyer can help negotiate a deal that is more favorable to you. Some deals are considered a "standard package." Which essentially means the company presents a severance package they have created and that they believe is standard for you or your position. This is often considered an "easy out" for the company. Once an employment lawyer seriously gets into the case, you may find out that the process isn’t so cut and dry. Depending on your situation, you may be able to negotiate a deal that is much more favorable to you , which we have done many times.
An attorney generally will help to ensure you have been treated fairly. This can mean different things in different situations. This might mean being paid all the wages and payments you are owed. Sometimes it might mean ensuring proper notice is provided if you are released from the duties assigned to you, or your position is eliminated entirely. In all circumstances, a good lawyer should make sure you are being given what you have earned. Sometimes good employers will go above and beyond what is required to help their employees. But some do not. If you feel as though you have not been treated fairly, find an attorney who will help you make sure that all the terms are fair.
Inquiries for a Severance Agreement Attorney
Whether it’s a first meeting or a follow up, you want to assess the value being provided by your severance agreement lawyer. In short, you want to determine whether you are getting quality legal advice.
Here are some good questions to ask:
- Are you an employee rights attorney, or a corporate attorney? – This is what I call the "schools of thought" question. Are you representing the employee or the corporation? This simple question will shed light on where the attorney’s loyalties lie and whether you wish to proceed with legal counsel that holds a position detrimental to your interests.
- When was the last time you represented an employer in a severance agreement negotiation? – If the answer is "recently," then you know you are dealing with a defense attorney. A defense attorney is a lawyer experienced and well versed in all forms of employment law including unlawful termination, discrimination, and severance agreements. While it may seem like a good idea to have someone familiar with both sides of the issue, the truth is lawyers who represent both sides cannot be successful with either. Think about it. If the lawyer you are hiring does too much for you, he/she is not getting paid to "undo" it once the other side sees. And, the other side realizes the lawyer is not defending their side effectively.
- How did you arrive at those results? – Here’s a simple way to determine whether the attorney is being diligent and honest with you. Ask them to explain their reasoning behind the actions. I have had clients ask me this question, to which I am happy to provide a detailed explanation backed up with reliable references.
- Is this the best possible outcome? – As an employee, you are likely to be faced with the emotional trauma of losing a job you relied on for years. Don’t forget that you are also facing debt, unemployment, and loss of benefits. Leave no stone unturned, and do not settle for anything less.
I go above and beyond to enlighten and ready the employee. Having an attorney willing to explain everything in detail and rationalize it is arguably the most important factor in successfully settling a severance agreement in an employee’s favor.
Selecting the Appropriate Severance Agreement Attorney
Finding the right severance agreement lawyer can make a significant difference in the outcome of a severance agreement. Choosing the right attorney requires an evaluation of several factors to ensure that your lawyer has the necessary experience and reputation to handle your case. After you identify lawyers that you want to interview, you should make sure that the lawyers that you interview focus on employee rights. Employees should never use a lawyer that focuses on employer’s rights in the specific area of law that you are facing.
Other important qualities to look for in a severance agreement lawyer are experience, strong client relationships and a commitment to quality work. Lawyers often rely on the initial interviews with clients to determine the scope of the clients’ claims. Lawyers should be experienced at determining the legal claims that clients have . Lawyers should also focus on building long term relationships with their clients by keeping in regular contact with their clients. Lawyers who tend to bill more than six or seven minutes for phone calls are usually less responsive with clients. Lawyers who tend to focus on quality over quantity of work are usually better at getting great results.
The right severance agreement lawyer will be able to develop a solid understanding of the typical range of severance packages from the category of employers from which you are separating employment. Many employers have standard severance agreements and severance package offers. The right severance lawyer will understand what is customarily offered and what is not offered to employees who are departing employment with the applicable employer based upon dozens of prior severance agreements that they have reviewed for other clients. Identifying a lawyer with this knowledge will place you at an advantage in negotiations for your severance agreement.