Legal Question in Employment Law in California
General Release for Severance Pay
I have received a 'General Release' that my former employer asked me to sign in exchange for 2 weeks of severance pay. It states that I have received the severance, however the HR person at the company said I have to sign it first, then they'll send me the check in 7 days if I have not revoked the agreement. Do they have the right to withhold the check for 7 days if the agreement states that I have received it upon signing the agreement)?
1 Answer from Attorneys
Re: General Release for Severance Pay
There is a provision in a federal law that protects workers over 40, that gives such employees 7 days to change their mind after having signed severance agreements. Employers won't issue the check until after the 7 days have expired because, otherwise, the employee might change their mind then keep the check.
If you are under 40, it shouldn't matter - there is no reason to make you wait 7 days. Once the contract is signed by both parties, it is a binding contract.
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