I can help you understand your rights and explain your options so you can make an informed decision.
OVERVIEW
During economic downturns, employers are sometimes faced with tough personnel decisions and sometimes choose to reduce their staff. Whether your employer calls it a layoff, reduction in force, plant closing, or simply a termination, if you have been asked to sign a severance agreement, you should make sure you understand all of your rights – and understand what rights you will be waiving – before you sign the severance agreement.
I can help you understand your rights and explain your options so you can make an informed decision.
WHAT IS A SEVERANCE AGREEMENT?
A severance agreement (also called a General Release of Claims, a Waiver of Claims, or a Release) is a contract that contains many complex, and legally binding, provisions. At its core, in a severance agreement, the company agrees to pay you money and you agree not to sue your employer.
IS MY EMPLOYER LEGALLY OBLIGATED TO GIVE ME A SEVERANCE PACKAGE?
Is there a law requiring employers to give employees severance packages? No, in California there is no law requiring that employees be given severance packages.
WHY DO EMPLOYERS GIVE EMPLOYEES SEVERANCE AGREEMENTS?
If there is no law requiring employers to give employees severance packages, then why do they do it? There several reasons that an employer may offer an employee a severance package, but the most common reason is to buy peace of mind so it can avoid a wrongful termination lawsuit. Defending wrongful termination lawsuits (or responding to EEOC inquiries) related to claims for discrimination based on age, sex, sexual orientation, pregnancy, disability, religion can be costly and time consuming for your employer.
WHY SHOULD AN ATTORNEY REVIEW MY SEVERANCE AGREEMENT?
There are a number of reasons to have an attorney review your severance agreement before you sign it, including the following:
• Make sure you are not waiving a valuable right to be properly compensated for wrongful termination, discrimination or sexual harassment by your employer. For example, you might be prevented from filing and pursuing a claim for a violation of Title VII, or for violations of the California Fair Employment and Housing Act (FEHA). If you have a strong discrimination claim, you will likely have more leverage to get better terms and more money.
• Make sure you are getting the most money possible from the severance agreement. In some circumstances, it may be possible to negotiate better terms and get more money.
• Severance agreements are often filled with complicated terms, concepts, and “legalese”. I can analyze and interpret your severance agreement and explain the terms to you in concise and easy to understand “plain English.”
• In an effort to cut costs, some employers “cut and paste” old severance agreements that may be outdated, have illegal or unenforceable terms and conditions, or be written for employees in states other than California. Make sure you understand which provisions are valid and which provisions are invalid.
• Some severance agreements fail to include key terms that can be harmful to you if not included. Your employer is getting peace of mind from the severance agreement. You should too.
• Some rights cannot be waived. You need to know that your employer is not trying to trick you, scare you, or otherwise cheat you.
• Employees 40 years of age and older have special federal rights related to their severance agreement. Severance agreements for these employees must include certain language required by the Age Discrimination in Employment Act (ADEA).
• There are special requirements for severance agreements given to employees who lose their job as a result of a large layoff (also called a reduction in force or “RIF”) and plant closings.
• Make sure all of your questions and concerns are addressed and answered. It is common for employees to have questions about COBRA rights, unemployment insurance/benefits (EDD), California Civil Code Section 1542, references, trade secrets, non-competition (non-compete provisions), non-disparagement provisions, and restrictions on hiring former coworkers.
WHAT TYPES OF EMPLOYEES DO YOU HELP?
I try to help as many employees as possible. Whether you are an executive, supervisor, manager, high-tech/Silicon Valley worker, at a start-up, or have given years of service as a frontline employee, I will do my best to help you make an informed decision about your rights during this difficult and uncertain time in your life.
DO YOU ONLY HELP CLIENTS IN CERTAIN GEOGRAPHIC LOCATIONS?
My office is in downtown Oakland, California and is easily accessible by BART. However, I assist clients throughout the East Bay, South Bay/Silicon Valley, San Francisco, and Marin County. I am also available to help employees throughout California – Los Angeles, San Diego, Sacramento, Fresno – through telephone consultations. Please see below for my full contact information.
WHEN SHOULD AN ATTORNEY REVIEW MY SEVERANCE AGREEMENT?
Most severance agreements have deadlines by which they must be signed. Therefore, you should seek consultation as soon as possible to make sure you do not waive important rights. In some circumstances, you may be able to get an extension so you are not rushed into potentially making a bad decision or costly mistake.
HOW MUCH WILL IT COST TO HAVE MY SEVERANCE AGREEMENT REVIEWED?
My goal is to work efficiently to help you keep your legal fees low and your costs under control. I offer a discounted flat rate for certain services.
If you have any questions or would like to schedule a consultation, please give me a call at 510.420.1400 or send me an email at greg@mayedalaw.com.
CONTACT INFORMATION
The Law Office of Greg Mayeda
410 Twelfth Street, Suite 325
Oakland, California 94607
Telephone: 510 420 1400
FAX: 510 291 9694
E-mail: greg@mayedalaw.com
www.mayedalaw.com
Map and Directions
Please note: Google Maps (and perhaps your GPS system) may show the zip code as "94612" and not 94607. If using a GPS to visit my office, make sure that you are not being guided to 410 EAST 12th Street.