Newport Beach Severance Agreements
If you need help reviewing a severance agreement, it’s a good idea to contact a Newport employment law firm. Generally speaking, severance agreements are legal as long as you enter into them knowingly and voluntarily. It’s legal even if it’s a bad deal for you! When you have legal representation, your employer will take you much more seriously, and you’ll likely get a far better deal. If you need help reviewing a severance agreement, we can assist. Contact the office of Sessions & Kimball by using our online contact form or call us at (949) 380-0900 for a free consultation today.
Severance Packages Aren’t Provided Out Of The Kindness Of your Employer’s Heart
Severance packages are not offered to you because your employer is feeling generous. They are always profiting from it as well. In order to make sure they get exactly what they want, your employer will draw up a severance agreement that you will have to sign before you receive your severance package. Knowing this, it’s clear to see why hiring an attorney to review the agreement is in your best interest. The following are some of the aspects of an agreement that a lawyer will study to make sure you’re getting a good deal:
- Contracts. Your lawyer will review all past and current employment contracts between you and your employer
- The Terms Of The Agreement. Almost everything can be negotiated, so a lawyer will look at all of the terms in detail and see where they can increase the payment for you. This includes money, benefits, and even assistance in finding a new job. You may also be able to negotiate a pension, retirement plan, and stock ownership.
- Tax Consequences. Severance pay is usually considered income, so there will always be tax consequences. This is important to know when you’re deciding if you’re going to accept their severance offer or not. You have to take into account that it won’t all be profit because of potential taxes. Additionally, an experienced lawyer will review the agreement to see if it can be structured in a way that reduces your tax liabilities.
- Payment Schedule. Your attorney will see if the contract calls for a lump sum or some other type of payment structure. If you accept a payment plan instead of a lump sum, your attorney should look into the stability and health of your employer to make sure they won’t go out of business before you get paid in full.
Typical Severance Package & Agreement
While every severance package and agreement will be different, there are some basics that are usually included. When accepting a severance package, the payment you receive is typically around one to two weeks of pay for every year you worked at the company. For example, if you worked there for ten years, you can expect to receive 10-20 weeks’ worth of payments.
Most severance agreements include a release of liability, meaning you won’t be able to sue your employer in the future. Severance agreements can contain a release of all claims against an employer, and this is legal, enforceable, and binding. However, keep in mind that an employer cannot have an employee release claims in exchange for payment or benefits that are already owed to the employee.
Sessions & Kimball Can Help With Your Severance Agreement
We have been helping employees negotiate severance agreements for decades. We are not just members of the legal industry, we are leaders and pioneers. Founding partner Don Sessions began representing employees in the 1980s, decades before any other Orange County employment attorney was helping workers. If you need assistance, contact the office of Sessions & Kimball by using our online contact form or call us at (949) 380-0900 for a free consultation today.