Executive Severance Agreement Review
Columbus Ohio Severance Review Lawyers
Helping Executives Move On In the Best Position for the Future
Severance agreements can be complex and often include restrictive covenants and executive non-compete clauses. It is also important to make sure the severance addresses all aspects of executive compensation including bonuses, long term incentive compensation, equity, stock options, and stock units (RSUs). To fully understand the terms and conditions in your executive severance package, it is essential to consult with an employment lawyer. Once you have signed an agreement, you usually cannot revoke your acceptance after a certain time period has passed.
It is also important to ensure you are getting what you deserve before signing or trying to negotiate a severance package. Our Executive Severance Lawyers review and find leverage to negotiate your severance to make sure you are fully and rightfully compensated for the difficult transition period between jobs. We have reviewed thousands of severance packages. Mansell Law attorneys are experienced severance negotiators, and we know how to leverage your past employment and all the circumstances of your separation to help you move forward.
How Do Severance Agreements Work?
A severance agreement contains promises from both parties and requires consideration, or an exchange of things of value. Our experienced Ohio employment lawyers can help ensure that any severance agreement fairly compensates you in exchange for the rights you may be relinquishing.
Severance packages and agreements are legally binding contracts. A severance outlines the rights and responsibilities of both the executive and the employee regarding the separation from employment. A Severance Agreement outlines the terms of a severance compensation (which may include various terms of compensation, bonuses, equity, etc.) and benefits package, as well as the conditions that could cause the package to be given or withdrawn.
The severance agreement should offer some compensation or “consideration” beyond that which you are already entitled, such as your final paycheck and compensation for accrued but unused paid leave. In exchange, you may be giving up some rights, such as agreeing not to sue your employer for any potential discrimination or harassment claim or wage and hour violation. You could be in a very strong bargaining position if your employer thinks you have a case against it and wants you to go away quietly. Having an experienced employment lawyer negotiate on your behalf shows your employer that you are serious about protecting yourself and understand the value of your position.
What Are My Rights to Review, Accept or Reject a Severance Package?
If you are over 40 years old, you are protected by the Older Workers Benefit Protection Act. This OWBPA prohibits discrimination and protects employees over the age of 40 who waive their right to sue for Age Discrimination. If you are asked to sign a waiver, release or covenant not to sue in exchange for severance pay or other compensation, your severance payment should be more than the amount the company typically provides. Under the OWBPA law, employees over the age of 40 have 21-days to decide whether to accept the severance being offered if you are the only person being separated. If the waiver or release is being sought from a group of employees, then you each have 45 days to decide to accept or reject the offer. This gives you plenty of time to think it over and contact a qualified employment law attorney to review the agreement and discuss your situation with you. You also seven days after signing to revoke the agreement.