Severance Negotiations and Leverage

By Thomas McKinney

The key to negotiating a better severance package and increasing the severance pay is leverage.  Employees who are terminated and offered a severance agreement typically tell us that they “want more” or “need more” severance pay.  If you want or need to increase your severance package, you need to have leverage.

We have found that you can determine if you have leverage to negotiate your severance pay falls if you answer yes to any of the following questions:  (1) Do you have a potential lawsuit or claim against the company that you don’t want to waive? (2) Does the employer possibly require your services or cooperation after your employment is terminated? (3) Where you promised anything that the employer failed to pay you?  and (4) Does your employer want to make sure that you do not disparage them to clients and customers?

If you answer yes to any of the above questions, you may be able to negotiate an enhanced severance agreement.  Please contact us if you would like our assistance in helping you negotiate your severance.

March 16, 2010 -Tom McKinney – Castronovo & McKinney – New Jersey Severance Attorneys

About the Author
Tom McKinney is an experienced NJ Employment Lawyer in all major areas of labor and employment law, including discrimination, harassment, overtime violations, wage and hour claims, sexual harassment, wrongful discharge, Title VII, ADA, ADEA, FMLA, LAD, FLSA, and all other employment law claims. Tom is admitted to practice in the States of New Jersey and New York, United States District Court for the Eastern District of New York, Southern District of New York, District of New Jersey, and United States Court of Appeals for the Third Circuit. Prior to forming the firm, Tom practiced at Gibbons P.C. in Newark, NJ. If you have any questions regarding this article, contact Tom here today.