The Right Kind Of Severance Package
Many businesses provide severance pay or severance packages to management, executives and other employees upon job termination. Employees have the right to accept, negotiate or decline a severance package. If you have been offered severance, you may have questions you want answered before you make any decisions. At Mowery Youell & Galeano, Ltd., in Dublin, Ohio, our lawyers can help you review the severance package to determine the next steps best aligned with your goals and interests.
Is My Employer Required To Give Me A Severance Package In Ohio?
No employer is obligated to provide severance pay unless they have signed a contract stating that they would. Typically, severance pay is offered to ease the loss of a job for an employee and to protect the employer from claims, and may even include a noncompete provision and more. Severance pay is more likely for long-term employees.
How Much Money Should I Get In My Severance Package?
Employers typically provide one or two weeks of pay for every year an employee worked. For example, if you were paid $5,000 a week and you worked for the company for 20 years, you might get $100,000 to $200,000 in severance pay. Keep in mind that a severance package may also include things like extended insurance benefits or even job placement assistance. The amount offered is negotiable.
What Rights Do I Give Up By Signing A Severance Agreement?
There is often a trade-off that comes with accepting a severance agreement. Your employer wants to protect itself. When a corporation offers severance, the contract typically includes a release of legal claims against the company, especially if the person receiving the package is over age 40. As part of our review, our lawyers can advise you about what other possible legal claims you may have, such as an age-based discrimination lawsuit, and your likelihood of making a recovery.
Your severance package may include a noncompete agreement that could severely limit your ability to find another job in the same area. Our lawyers will explain your obligations under the noncompete agreement. In some cases, these agreements can be negotiated so they do not unduly limit your ability to find work.
If I Already Signed A Severance Agreement, Can I Change My Mind?
If you have been offered a severance agreement, you have 21 days to decide whether to sign it. If you have already signed an agreement, you have seven days to revoke it.
What Can I Do If My Employer Did Not Provide The Pay Or Benefits Agreed To In The Severance Agreement?
A severance agreement is a contract. Like other contracts, if it is breached, the breaching party may be held accountable. If you have not received the severance pay or benefits agreed to, you may be able to pursue a claim to get what you were promised. Our attorneys can help to enforce the severance agreement.
Want To Know More About Severance Agreements?
For more information, call 614-467-4923 or send an email to meet with a trusted attorney. From our law office in Dublin, we represent executives, managers and other employees in reviewing, negotiating and enforcing severance agreements throughout the Columbus metro area and all of Ohio.