Legal Question in Business Law in California

Re: Severance Pay

It sounds like you have a legitimate claim, but I cannot be sure without seeing the actual contract.

Feel free to email me a copy of the contract for a better answer.

Re: Severance Pay

One important thing you didn't state specifically is whether you are entitled to severance pay under the contract, and signing a release is just a condition of receiving it. This is a whole lot different than a contract provision saying, for instance, "if an employee is to receive severance pay, he or she must sign a release." The latter sentence (in quotes), or one like it, would not create an obligation to pay severance.

You need first to determine that an obligation to pay severance is created at all under the contract, and then and only then do the conditions of payment become of any consequence.

Re: Severance Pay

One additional thing, if it is a collective bargaining agreement, you should contact your union immediately.

Re: Severance Pay

Of course. The law does not require severance pay. It is up to the company if they want to offer it. Sign and get it, negotiate something else, or simply walk away. Your choice.

Re: Severance Pay

There is no way to answer your question without knowing more about the facts, including (but not limited to) exactly what the contract says.