Two Things You Must Do In Signing a Severance Package

By Thomas McKinney
Partner

If you are fired, your employer might offer you a severance package.  But they are not doing it just to be kind.  They’re willing to give you a few weeks or months’ pay in exchange for a promise from you: a legally binding agreement not to sue.  This is called a release.  Before signing a release, the law allows you to do two simple but very important things.  First, take a few days or a week to think about it and talk it over with your family.  Do not sign it on the spot.  Any employer who pressures you to do so is violating the law.  Second, consult with an attorney about whether you have a possible lawsuit and, if so, whether you are getting sufficient severance pay to make it worth waiving your claim.  Anything less renders the release unknowing, involuntary, and void.

10/21/10 – Tom McKinney

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.