What You Should Know About Your Severance Package | Mann & Elias
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What You Should Know About Your Severance Package

CONTACT US TODAY IF YOU ARE HAVING SEVERANCE PACKAGE DISPUTES WITH YOUR EMPLOYER

When you lose your job, your first thought may be how you will continue paying your bills and supporting yourself and your family until you find a new position. To ease the transition between jobs, many employers provide employees who have been laid off with a severance package.

While this package will usually include financial compensation, access to a continuation of health insurance and other benefits, and other perks, it is also important you know exactly what is included in your severance package prior to you accepting the package as-is. Employees often sign away their rights to sue their employer unknowingly.

Never sign an agreement before reviewing the terms and conditions first. We encourage you to schedule a free consultation with our severance pay lawyers in Los Angeles!

Am I Legally Entitled to Severance Pay?

If you lose your job through no fault of your own you may assume your employer is legally required to give you a severance package. In most cases that is not the case. However, some states have laws requiring employers to provide employees with a nominal amount of severance pay upon release. Should you believe that your employer has not fulfilled their agreement and does owe you severance pay, meet with an employment attorney in Los Angeles immediately.

Looking Out for Number One

While many employers will offer severance packages as a gesture of appreciation to employees, others may do so for other reasons. For example, they might be trying to push you out the door in hopes of avoiding a lawsuit. This often happens when an employee has complained about various types of discrimination or harassment against them.

Severance packages typically require employees to give up certain rights. You should always think carefully before agreeing to an employer’s terms. If you believe you have been a victim of discrimination or harassment on the job and now have issues with your final pay, consult with a knowledgeable attorney about your options.

Signing Away Your Rights

Even if you have had problems with your employer and are more than eager to walk out the door with a severance package in tow, doing so may cost you significant compensation in the long run. For example, if your employer objected to you taking FMLA leave and then suddenly decided to give you a severance package, they are likely trying to get rid of you before you take legal action against them. Never agree to accepting a severance package until you have received legal help in the negotiation process.

Negotiating with Your Employer

While many employees assume that severance packages are given as a take it or leave it proposition, that is not true. You should always negotiate with your employer when a severance package is being discussed. In doing so, you may be able to strike a much better deal in terms of financial compensation and other benefits. In addition, you may also be able to gain more flexibility regarding what rights you may have to forfeit upon taking the severance offer.

Benefits and Method of Pay

When negotiating a severance package with your employer, some of the most important areas will include the benefits and the method of pay your employer will utilize to give you your compensation. Regarding benefits, you should always try to negotiate your health insurance, such as disability and life insurance, accrued time off, and other perks you want included. As for the payment method, you may have the option of receiving a lump-sum payment or over some time, very similar to how you were receiving your standard paychecks. If your employer is willing to work with you and is eager to leave, you will have more leverage. To increase the odds even more in your favor, seek legal representation to lead your negotiations.

Take Time to Decide

If your employer implies you have to make an immediate decision on the spot about your severance package, they are wrong. In any package, it should be stated you have time to decide whether or not to accept the offer. This can vary from a few days to perhaps two weeks, so don’t procrastinate. Also, should you be over 40 years old, the Older Workers Benefit Protection Act will protect you. With this law, you will have a minimum of 21 days to consider the offer, as well as seven days to change your mind after you make a decision. Negotiations of this nature often go back and forth between both parties.

By deciding one way or another regarding your severance package, you are determining the financial future of you and perhaps your family. If you believe you can get a better deal from your employer or feel you may need to pursue a lawsuit later on, schedule a consultation with a workplace lawyer at the law firm of Mann & Elias.

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