- What is a severance package?
- How much is a typical severance package?
- How do I negotiate my severance package?
- Should I hire a severance negotiation attorney?
Section #1: What is a Severance Package?
What is a Severance Package?
There is not standard definition of severance package. The term “Severance Package” typically refers to an agreement between an employer and a former employee (or soon-to-be former employee) where the company agrees to provide the employee with certain financial benefits (payment of money, medical coverage, etc.) in exchange for the employee agreeing not to sue or disparage the company.
Section #2: Why do employers offer Severance Packages?
Why do employers offer Severance Packages?
The employment contract requires the company provide you a Severance Package
The company wants a clean “breakup” with you
The Company needs a legal way to non-compete you
The Company wants to resolve potential legal claims with you
Section #3: How much is a typical Severance Package?
How much is a typical Severance Package?
COBRA Health Insurance Continuation
In addition to a lump sum payment, Companies often provide COBRA continuation payments. COBRA is the law that allows employees who lose their jobs to remain on their employer-provided health plan.
Section #4: What is in a typical Severance Agreement?
What is in a typical Severance Agreement?
General Release of Claims
Section #5: What should you watch out for in your Severance Agreement?
What should you watch out for in your Severance Agreement?
One-Sided Non-Disparagement, Confidentiality and Release Agreements
Sign-On Bonus Clawbacks
Section #6: Special issues in Severance Agreements
Special issues in Severance Agreements
If you are involved in a worker’s compensation claim or you are contemplating filing one, your employer cannot require you to waive away your rights to file a worker’s compensation claim.
Section #7: Employee equity and stock options in Severance Packages
Employee equity and stock options in Severance Packages
Vesting of RSUs and Stock Options
Expiration of Stock Options
Section #8: When should you negotiate your own Severance Package?
When should you negotiate your own Severance Package?
Understand your employer’s priorities
Identify a compelling reason to negotiate your severance
Making the request
Beware of the risks of negotiating your own severance package
Real Life Example:
The company offered Jennifer a severance package with a confidentiality agreement. Unsatisfied, Jennifer attempted to negotiate a better package. During the negotiation, she disclosed information that weakened her bargaining position. She was forced to settle for a severance package that was significantly less than what she could have received.
Section #9: When should you hire an attorney to negotiate your Severance Package?
When should you hire an attorney to negotiate your Severance Package?
Client Success Story:
Based on our analysis and calculations, we were able to determine that Andrea was owed more than $200,000. Knowing that she had strong legal claims to go back to the company with, Andrea was able to negotiate a better severance package.
Section #10: Finding the Right Attorney to Negotiate Your Severance Package.
Finding the Right Attorney to Negotiate Your Severance Package.
What to look for in an attorney
Questions You Can Use to Interview Attorneys
Things to consider in selecting your attorney
Section #11: We Review Severance Packages: Flat Fee, 24-Hour Turnaround