If you were recently terminated, you may have been handed a severance agreement. These legal contracts often promise certain benefits that continue, compensation, and other perks that help ease your new unemployment. However, they may also have obligations hid within that affect your rights. If you are wondering if a lawyer should review your severance agreement, the answer is a resounding yes.
The employment attorneys at Abney Law can help you review a severance agreement and determine whether you should sign it. We help you watch for common traps faced by employees and even negotiate an alternative resolution. Our team can also help with wrongful termination or discrimination if you were fired for illegal reasons. Whatever you face, we are ready to help.
Understanding Severance Agreements in Kentucky
You’ve been handed a severance agreement, but do you really know what you are dealing with? This agreement states the obligations and compensation you will deal with after your termination. Kentucky doesn’t require employers to provide severance pay or other benefits, but these agreements are common. Common provisions you might see include:
- Terms for installment payments
- A lump sum payment
- Continued health insurance for a certain period
- Retirement benefits for a certain time
- A release of claims, by you, to sue for any wrongdoing by your employer
- A confidentiality clause
- A non-solicitation clause
- A non-compete clause
These agreements are usually drafted to benefit your employer. They can seem very beneficial to you as well, but may have hidden traps you aren’t aware of. It is crucial to have a lawyer review your agreement before you sign it.
Why Should I Get My Severance Agreement Reviewed?
1. Protecting Your Rights
Employers usually add language that protects them from future legal claims. You might waive your right to sue for wrongful termination, discrimination, and much more. Many people sign before fully considering what they are giving up, letting the employer get away with a wrongful termination.
2. Identifying Hidden Restrictions
Non-compete agreements are often a part of severance agreements. They are allowed, if they are reasonable in scope and duration. However, what is in your agreement may be far from reasonable. Have an attorney review before signing.
3. Ensuring Fair Compensation
Severance agreements often offer some compensation in order to get you to leave quietly. However, it may be far less than the industry standard. A lawyer better knows these standards and can help you negotiate a fair resolution.
4. Clarifying Tax and Benefit Implications
Severance pay may affect unemployment benefits or have tax consequences. A lawyer can explain how accepting the agreement impacts your financial situation.
Kentucky-Specific Considerations
Severance agreements are contracts. Kentucky courts use contract law when interpreting them. This means that they will consider:
- Whether a non-compete is enforceable under Kentucky law
- Whether your severance agreement violates the Age Discrimination in Employment Act
- Whether the agreement violates public policy limits or other legal restrictions
How To Avoid Common Mistakes When Signing a Severance Agreement
Many employees sign way too quickly. Employers may make it seem like you have to sign immediately, but you don’t. Pressure tactics could even be illegal depending on your circumstances. Ask for time to speak with an attorney first.
Employees should never assume the severance offer is standard. Packages between employees can differ significantly. Look at what it offers and also what it requires. Don’t overlook non-compete language or confidentiality terms, as they can be quite burdensome.
Avoiding these mistakes requires careful legal analysis.
Talk to an Employment Attorney in Kentucky Before Signing a Severance Agreement
Being let go is difficult, but you have rights that deserve protection. Perhaps you were terminated wrongfully. If not, even a seemingly favorable severance agreement could have problems that could negatively affect you. Review it with an attorney to protect yourself from the outset.
Let the skilled employment attorneys at Abney Law review your case. Contact us today for a consultation.