A severance agreement can provide financial support after a job ends, but signing may also waive important legal rights. Our Pittsburgh employment lawyers can review the terms, explain what you are giving up, and help you decide how to respond.
Severance agreements are legally binding contracts. In exchange for compensation or continued benefits, your employer may ask you to release discrimination, retaliation, wage, leave, or wrongful termination claims.
The agreement may also contain confidentiality requirements, non-disparagement language, cooperation duties, or restrictions affecting your next job. A lawyer can identify obligations that may not be obvious when you first read the offer.
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The payment amount is only one part of the offer.
A severance package may address salary continuation, a lump-sum payment, health coverage, unused paid time off, commissions, bonuses, stock options, retirement benefits, and the return of company property.
It may also control how your departure is described, what the employer will say during reference checks, and whether you can work for a competitor. Each provision should be reviewed together because one unfavorable clause can outweigh an otherwise reasonable payment.
Depending on your position, employment history, contractual rights, and the circumstances surrounding your separation, there may be room to request better terms.
Negotiations may involve additional compensation, continued insurance coverage, earned commissions, bonus payments, neutral references, changes to restrictive covenants, or narrower confidentiality language. A Pittsburgh severance agreement lawyer can help determine which requests are realistic and worth pursuing.
Signing can make it harder to pursue certain workplace claims later.
Most severance agreements include a broad release of legal claims. Before accepting, you should understand whether your termination may involve discrimination, retaliation, unpaid wages, protected medical leave, whistleblower activity, harassment, or another employment law issue.
A lawyer can review the events leading to your separation, compare the potential value of your claims with the proposed severance, and explain the practical consequences of signing or declining the agreement.
When an employer asks a worker age 40 or older to waive claims under the Age Discrimination in Employment Act, the agreement must satisfy specific requirements.
An individual employee is generally entitled to at least 21 days to consider the agreement. Certain group termination or exit incentive programs require at least 45 days. The employee must also receive seven days after signing to revoke the agreement.
These rules do not automatically make every severance offer fair. They establish minimum conditions for a valid waiver of federal age-discrimination claims.
Your payment structure may affect your unemployment compensation.
Pennsylvania may consider certain severance payments when calculating unemployment benefits. The effect can depend on the payment amount, your previous wages, and how the severance is allocated after your separation.
Before agreeing to a lump-sum payment or salary continuation arrangement, it is useful to understand how the structure may affect your finances while you search for another position.
Employees throughout Pittsburgh and Allegheny County may receive severance offers after layoffs, restructurings, performance disputes, executive transitions, or negotiated departures.
Our employment lawyers can review the complete agreement, explain difficult provisions, identify potential legal claims, and communicate proposed revisions to the employer. The goal is to help you understand the deal before you accept obligations that may continue long after your employment ends.
No. You generally have the choice to accept, reject, or attempt to negotiate the offer. However, declining the agreement may mean giving up the additional compensation or benefits offered in exchange for your signature.
Federal wage law generally does not require employers to provide severance pay. An obligation may exist when severance is promised through an employment contract, collective bargaining agreement, written policy, benefit plan, or another enforceable agreement.
The agreement should state its acceptance deadline. Employees age 40 or older who are being asked to waive federal age-discrimination claims generally receive at least 21 days for an individual offer or 45 days for certain group programs. Other employees may receive shorter deadlines.
Possible negotiation points include the payment amount, payment schedule, insurance coverage, commissions, bonuses, paid time off, stock or equity treatment, reference language, non-disparagement terms, confidentiality obligations, and non-compete or non-solicitation restrictions.
You may still qualify for Pennsylvania unemployment compensation, but certain severance payments can affect the timing or amount of benefits. You should report the payment accurately when applying and review how the proposed structure may apply to your situation.
Contact an employment lawyer promptly. Some agreements provide a revocation period, particularly when an employee age 40 or older waives federal age-discrimination claims. A lawyer can also review whether the agreement is enforceable and explain any remaining options.
