When an employee is terminated from their position, they may be asked to sign a severance agreement. A severance agreement is a legal document that outlines the terms of the employee’s separation from the company. The agreement will typically include provisions such as the release of all claims against the employer, the confidential nature of the agreement, and the payment of severance benefits.
Notably, California has special rules that you should be aware of. For example, California law requires that severance agreements include a written notice informing the employee of their right to consult with an attorney before signing the agreement. The notice must also state that the employee has five days, or if over 40 years old, seven days to consider the agreement. If the employee signs the agreement within that timeframe, they are deemed to have waived their right to consult with an attorney.
If you have been asked to sign a severance agreement, contact our office today to schedule a consultation with one of our experienced attorneys. Severance agreements are generally negotiable, so it is important to have the attorneys at MSD review the agreement before signing it. We can help ensure that your rights are protected and that you are getting fair compensation for any claims you may have against the company.