Severance Agreements

Navigating transitions in the workplace can often be complex and stressful. At Glasner Law P.C., we alleviate such stress by offering comprehensive guidance on severance agreements. We focus on understanding variables like the context, associated benefits, and potential liabilities tied to your severance package. Equipped with substantial experience and extensive legal acumen, we strive to manage negotiations effectively and ensure our clients secure the most favorable terms.

Understanding the intricacies of employment law, we aim to protect your rights, interests, and future income. Leaving your job doesn’t have to be daunting. With Glasner Law P.C., you can feel confident navigating through every step of your employment transition. For additional details about our services or to schedule an initial discussion, please reach us at (530) 688-8154. We are committed to your success and peace of mind.

Common Provisions in Severance Agreements

Our law firm offers comprehensive guidance on various types of provisions included in severance agreements:

Severance Pay: An agreement offering a predetermined amount to be paid in lump-sum or installments given to an employee upon the termination of their employment. The parameters of this payment can vary based on tenure, salary, and reasons for termination, among others.

Liability Release: This clause safeguards the company in question against potential legal recourse from the terminated employee. The agreement asks the employee to formally renounce any claim against the company after their departure.

Health Insurance: A significant aspect of severance agreements is negotiating continued health insurance coverage. This provision outlines the duration and terms of coverage after the termination of employment.

Non-compete: Often, an employer includes this clause to prevent an employee from working for a competitor or starting a competing business for a specified period and in a certain geolocation.

Non-solicitation: This provision prevents employees from soliciting clients, customers, or other company employees.

Non-disparagement: This clause prohibits the employee from saying or implying anything negative about the company post-employment. This includes all media, including social networks and employment references.

Confidentiality: An important provision that stipulates the employee agreement to keep certain information about the company confidential even after their departure.

Our law firm is well versed in a variety of other provisions, not limited to the above comprehensive list. We have extensive knowledge of agreement legality and labor laws, which we use to draft and review severance agreements, safeguarding our clients’ rights and interests.

Non-Compete Provisions in Severance Agreements

Navigating the intricacies of severance agreements can often be complex, especially when it comes to understanding elements like non-compete provisions. These provisions are usually designed to prevent a departing employee from starting a competing business or working for a competitor for a specified period after termination. However, the enforceability of these provisions tends to vary significantly from one state to another. In California, for example, non-compete provisions are often seen as restrictive of the employee’s right to earn a livelihood and are generally viewed as unenforceable.

That being said, exceptions to this rule under California law exist where certain non-compete provisions may be enforceable. For instance, if a business is being sold and the seller agrees not to start a similar business in the same geographical area for a certain period, that could be an enforceable non-compete provision. Similarly, partners leaving a partnership may be bound by enforceable non-compete provisions. The scope, geographical restrictions, and time limits of these enforceable non-compete provisions can vary based on many factors, including the specific details of the agreement and the unique circumstances.

In all cases, it is imperative to thoroughly review the extent and implications of a non-compete provision within a severance agreement. This can provide valuable insight and understanding regarding an employee’s rights and restrictions following the termination of employment. Our adept team of lawyers can provide comprehensive knowledge and guidance to help you navigate this process.

Non-Disparagement Provisions in Severance Agreements

Severance agreements are essential to employment law and provide a vital safety measure as one navigates through transitional periods in one’s professional life. Among the many intricacies of severance agreements, one essential component that plays a critical role is the non-disparagement provision. This provision’s function is to safeguard both the employee and employer after termination or resignation, ensuring neither party speaks negatively nor causes harm to the other’s reputation.

Depending on the specific agreement, this provision can be one-sided or mutual. A one-sided non-disparagement provision primarily protects the employer, blocking the employee from making harmful remarks or actions against the company post-employment. On the other hand, a mutual non-disparagement provision ensures protection for both parties involved. The employee receives the same courtesy and protection, keeping the employer from causing potentially damaging situations.

However, a third alternative combines the benefit of a one-sided non-disparagement provision with a neutral reference clause, offering an amicable solution for both parties. This clause allows the employer to provide an unbiased reference for the employee’s future endeavors without negatively impacting their reputation or opportunities, and in return, the employee agrees to the one-sided non-disparagement provision. This safeguards the company’s reputation while providing the outgoing employee a fair reference. This pivotal part of severance agreements warrants a thorough understanding to ensure a smooth and fair termination process.

Enforceability of Severance Agreements

In California, the enforceability of severance agreements is regulated under specific legal guidelines. A legally sound severance agreement must abide by these rules to remain enforceable. At the forefront is the obligation to provide precise, unambiguous wording. In other words, the agreement’s content must be readily understandable, leaving no room for misinterpretation. Secondly, the agreement must be knowingly and voluntarily signed by both parties. Duress, coercion, or any other pressure leading to involuntary consent can void the agreement. Also, the agreement should maintain the employee’s established rights under California’s Employment Laws.

Periodically, the enforceability of severance agreements may face challenges. Commonly, disputes arise when an employee contests the voluntary nature of their signature, the clarity of the agreement’s terms, or claims of any violation of their employment rights. In these instances, the agreement’s enforceability is tested, opening a potential path to litigation. Importantly, to maintain the integrity of the severance agreement, it is essential to ensure its formation follows the letter of the law. Legal counsel may also guide employers to incorporate certain defenses in the agreement to counter potential challenges.

Our knowledgeable law firm is adept at crafting enforceable severance agreements that comply with California’s legal requirements. We understand the complexities surrounding these agreements and are well-equipped to guide you through the process, ensuring your interests are safeguarded. Trust us to provide detailed insight and reliable guidance in this crucial aspect of employment law.

Suing for a Breach of a Severance Agreement

A severance agreement, typically executed upon termination of employment, holds significant taxing complexities and intricate legal implications for employers and employees. Consequently, it is essential to handle it meticulously, as a breach of this agreement can have considerable repercussions and may lead to a legal claim by either party. Should this occur, the law provides numerous remedies for the aggrieved party.

Depending on the specific facts and circumstances, the exact form of relief granted can range from monetary damages to specific performance and the potentiality of securing an injunction. For example, monetary damages—the most common legal remedy—are often awarded to compensate the party for the loss incurred due to the breach. Sometimes, this may encompass a range of potential damages, such as compensatory damages, consequential damages, and even punitive damages, if there are elements of egregious behavior involved in the case.

In other, more specific cases, the court may order the party who breached the agreement to perform the terms of the agreement. A rare but plausible remedy is an injunction, where the court commands or prohibits an action to prevent ongoing or further harm.

Understanding the multifarious legal nuances involved in severance agreements can be overwhelming. Our skilled and experienced attorneys will adeptly navigate these complexities and help you understand your rights, obligations, and potential liabilities. Whether you’re an employer needing guidance in structuring fair and legally sound severance packages or an employee seeking to protect your interests in a severance negotiation, we strive to safeguard your beneficial interests.

Assistance With Legal Issues in the Workplace

Severance agreements are complex legal documents that come into play when ending an employment relationship. This departure often presents challenges, yet it can serve as a foundation for a respectful transition when handled well. Glasner Law P.C.’s team comprises proficient attorneys who can guide you through the intricate process. With clarity in communication and accuracy in legal procedures, we facilitate an understanding of your severance agreement. We carefully examine factors like severance pay, liability release, health insurance, and non-compete provisions, among others, to ensure your rights and interests are protected. Trading uncertainty for confidence, we provide comprehensive advice to navigate your employment transition gracefully and with dignity. Transitioning from your job can be simple—partner with us for a stress-free experience marked by professionalism and a keen understanding of the law.

For more information, contact us at (530) 688-8154. We are dedicated to your success and peace of mind.

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FAQ

CAN I BE FIRED FOR TAKING MEDICAL OR FAMILY LEAVE?

If you’re eligible and you take protected leave (under the California Family Rights Act or pregnancy disability leave, for example), your employer generally cannot fire you, demote you, or retaliate for it. Doing so is unlawful. We see employers who “happen” to eliminate a position right after someone returns from leave — and timing like that is something the law takes seriously.

CAN I SUE THE PERSON WHO HARASSED ME, NOT JUST THE COMPANY?

For harassment, yes — under FEHA, individual harassers, supervisors, and coworkers alike can be held personally liable. For most other claims, liability runs to the employer. We’ll tell you straight who the real defendants are in your situation.

DISCLAIMER

The information on this page is general in nature and is not legal advice. Reading it does not create an attorney‑client relationship. Every situation is different, and legal outcomes depend on the specific facts. If you have questions about your own circumstances, please contact our office.

DISCRIMINATION, HARASSMENT, & RETALIATION

California law protects you from being treated worse at work because of who you are — your race, sex, age, disability, religion, pregnancy, sexual orientation, gender identity, national origin, and more. It also protects you when you speak up. We represent employees who have been targeted, demeaned, or punished for reasons the law says are off‑limits.

DO I HAVE TO LIVE IN REDDING, CALIFORNIA TO WORK WITH YOU?

I represent employees throughout Shasta, Tehama, Butte, Siskiyou, and the surrounding Northern California counties. If you’re not sure whether we can help, reach out, and we’ll point you in the right direction either way.

I FOUND OUT A COWORKER DOING THE SAME JOB EARNS MORE. IS THAT LEGAL?

It depends on why. Under California’s Equal Pay Act, if you’re doing substantially similar work, the employer must justify any pay difference with legitimate factors like seniority, merit, or production — not your sex, race, or ethnicity. And critically, your employer cannot prohibit you from discussing or asking about pay. That gag rule you may have been told about? It’s unlawful.

I HAVE A DISABILITY OR A MEDICAL CONDITION. WHAT IS MY EMPLOYER REQUIRED TO DO?

Your employer must engage in a good‑faith, back‑and‑forth conversation — the “interactive process” — to find a reasonable accommodation that lets you do your job. That might be modified duties, a schedule change, equipment, or leave. They don’t have to grant your exact request, but they can’t just ignore it, brush you off, or punish you for asking.

I REPORTED SOMETHING ILLEGAL AT WORK. NOW I'M BEING PUNISHED. DO I HAVE A CASE?

Quite possibly. California’s whistleblower law (Labor Code § 1102.5) protects employees who report what they reasonably believe to be unlawful conduct — to a supervisor, to a government agency, or internally. You don’t have to be a lawyer, and you don’t have to be 100% right. You need a reasonable, good‑faith belief and a connection between your report and the way you were treated afterward.

I SIGNED AN AT-WILL AGREEMENT. DID I SIGN AWAY MY RIGHTS?

No. You cannot contract away your protection from discrimination, harassment, retaliation, or being fired for an illegal reason. Those rights exist no matter what you signed.

I THINK MY ELDERLY PARENT IS BEING ABUSED. WHAT CAN I DO?

California’s Elder Abuse and Dependent Adult Civil Protection Act provides strong remedies — including, in serious cases, enhanced damages and attorney’s fees — against caregivers, facilities, and others who abuse, neglect, or financially exploit vulnerable adults. These cases are painful and time‑sensitive. The sooner the conduct is documented, the better.

I WAS FIRED FOR NO REASON. IS THAT ILLEGAL?

Usually, no — and this is the single biggest misunderstanding we hear. In an at‑will state, “no reason” is generally legal. What’s not legal is firing you for an unlawful reason: because of a protected characteristic, because you complained about something, because you took leave you were entitled to, or because you refused to do something illegal. So the question isn’t whether they had a good reason. It’s whether they had a forbidden one.

I'M CLASSIFIED AS AN INDEPENDENT CONTRACTOR. IS THAT CORRECT?

Maybe not. California uses a strict test (the “ABC test”) that presumes you’re an employee unless the company can prove otherwise. Misclassification is common, and it can mean you’ve been wrongly denied overtime, breaks, expense reimbursement, and more. The label on your paperwork doesn’t decide it — the reality of the work does.

I'M PAID A SALARY. DOES THAT MEAN NO OVERTIME?

Not automatically — and employers count on you believing otherwise. Being paid a salary does not by itself make you “exempt” from overtime. Whether you’re exempt depends on your actual job duties and your pay level, not your title or how you’re paid. Many salaried employees are misclassified and are owed substantial overtime they never knew about.

I'M PREGNANT. WHAT PROTECTIONS DO I HAVE?

California provides specific pregnancy‑related leave and accommodation rights that stack on top of general disability and family‑leave protections. You cannot lawfully be demoted, denied accommodation, or pushed out because you’re pregnant or planning a family.

IS THERE A DEADLINE TO BRING MY CLAIM?

Yes — and this is the one thing we urge you not to put off. Employment claims are governed by strict deadlines (statutes of limitations and administrative filing requirements), and some are surprisingly short. Waiting can permanently cost you the right to bring an otherwise strong claim. If you think you may have a case, the safest move is to ask sooner rather than later.

MY BOSS IS AWFUL. IS THAT DISCRIMINATION?

Not necessarily, and this surprises people. The law doesn’t require your employer to be kind or fair across the board. Harassment becomes illegal when it’s tied to a protected characteristic — when the comments, conduct, or hostility happen because of your sex, race, disability, and so on. A boss who’s equally miserable to everybody may be a bad boss without being a lawbreaker. A boss whose worst behavior lands on the women, or the older workers, or the one employee with a disability — that’s a different story.

MY EMPLOYER OFFERED ME SEVERANCE AND WANTED ME TO SIGN QUICKLY. SHOULD I?

Slow down. A severance agreement almost always asks you to release legal claims — sometimes claims worth far more than the severance on offer. Once you sign, that door usually closes. There’s no harm in having the agreement reviewed before you commit, and there’s often real value in it. Reasonable deadlines can frequently be negotiated, and the first number is rarely the last.

MY EMPLOYER SKIPS MY MEAL AND REST BREAKS. IS THAT ALLOWED?

No. In California, non‑exempt employees are entitled to meal and rest breaks on a set schedule, and “we were slammed” is not a legal excuse. When breaks are denied, the law requires the employer to pay an extra hour of wages for each violation — and those add up fast over months or years.

WHAT ABOUT ELDER AND ADULT DEPENDENT ABUSE?

In addition to our employment practice, we handle elder and dependent adult abuse cases. When those entrusted with caring for a vulnerable older or dependent adult betray that trust — through neglect, financial exploitation, or abuse — California law provides strong remedies. We help families hold them accountable.

WHAT ABOUT LEAVE, ACCOMMODATION, AND FAMILY LEAVE?

Sometimes life — illness, injury, pregnancy, a family member who needs you — collides with work. California law gives you the right to take certain leaves and to be reasonably accommodated, and it protects you from being punished for needing either.

WHAT ABOUT SEVERANCE AND SEPARATION AGREEMENTS?

A separation agreement can be a fair parting — or a document designed to get you to sign away valuable claims for far less than they’re worth. Before you sign, it’s worth knowing what you’re giving up.

WHAT ABOUT WHISTLEBLOWER PROTECTIONS?

Doing the right thing shouldn’t cost you your job. When you report illegal conduct, refuse to break the law, or raise safety or fraud concerns, California law stands behind you.

WHAT ARE CALIFORNIA'S WAGE AND HOUR PROTECTIONS?

California has some of the strongest worker‑pay protections in the country — and some of the most‑violated. If you’ve worked off the clock, missed breaks you were owed, been denied overtime, or been labeled something you’re not, the money belongs to you, and the law often adds penalties on top.

WHAT COUNTS AS DISCRIMINATION AT WORK?

It’s when an employer makes a decision that hurts you — firing, demotion, a missed promotion, a pay cut, worse assignments — because of a protected characteristic rather than your actual job performance. California’s Fair Employment and Housing Act (FEHA) protects a broader list of categories than federal law. The hard part is usually not what happened to you; it’s connecting the dots that show why. That’s the work we do.

WHAT DOES CALIFORNIA LAW PROTECT REGARDING EQUAL PAY?

Equal work deserves equal pay. California’s Equal Pay Act requires it, and the burden is on the employer to justify pay gaps for substantially similar work.

WHAT IF REFUSED TO DO SOMETHING ILLEGAL AND GOT FIRED FOR IT?

That can be wrongful termination in violation of public policy. You are not required to break the law to keep your job, and an employer cannot lawfully punish you for declining to.

WHAT IF I WERE PAID LATE OR MY FINAL CHECK WAS CUT SHORT?

California treats wages as nearly sacred. Late final paychecks trigger “waiting time penalties” that continue to accrue, and missing wages, unreimbursed expenses, and defective pay stubs each carry their own consequences. Small‑seeming violations frequently add up to real money

WHAT IS "CONSTRUCTIVE DISCHARGE?"

Sometimes an employer doesn’t fire you — they make your working life so unbearable that any reasonable person would quit, hoping you’ll do exactly that. California law treats that as a firing in disguise. The bar is high; ordinary stress or a bad week won’t qualify. But genuinely intolerable conditions, deliberately created, can.

WHAT IS RETALIATION, EXACTLY?

Retaliation is punishment for doing something the law protects — reporting harassment, requesting an accommodation, complaining about unpaid wages, or taking medical leave. Here’s what’s important: you can have a strong retaliation claim even if the thing you originally complained about turns out to be wrong, as long as you complained in good faith. The law protects the act of speaking up, not just the underlying grievance.

WHAT IS WRONGFUL TERMINATION?

California is an “at‑will” state, which means employers can let you go for almost any reason — or no reason at all. But “almost any” isn’t “any.” When a firing crosses a legal line, it’s wrongful termination, and the law gives you a way to respond.