Legal Question in Employment Law in California
Termination and signed release for severance package
I am 46 years old and was hired by a private company as their Vice President. After 5 months the company has decided that the positioned is no longer needed and was eliminated. I signed an employment contract that states 6 weeks of severence and I did sign a release form. Now the company wants me to sign a restricted stock purchase agreement and a promisory note or they will not pay me my severence. I have been advised by a friends attorney to not sign this agreement.
Question: What can I do to still get my severence?
3 Answers from Attorneys
Re: Termination and signed release for severance package
This is a classic breach of contract claim. If they haven't paid you the six weeks' severance pursuant to the terms of your original agreement, you may bring suit in a court that has jurisdiction, i.e. small claims (up to $7,500), limited ($25,000 or under), or unlimited (above $25,000). Please let me know if I may be of further assistance. Sometimes a letter from a lawyer could do the trick.
Re: Termination and signed release for severance package
It is difficult to give you specific advice without seeing the employment contract and other other documents that you have signed or been asked to sign. It would also be helpful to know what reason(s) you were given when they asked you to sign the new agreement.
From what you have DESCRBIED, it does sound like you are entitled to the money without further delay. The best person to ask is the attorney who has already seen the documents.
Re: Termination and signed release for severance package
Did you sign a release form without consideration? If so, the release may not be enforceable. I wonder if you might have other claims against them, based on the fact that they hired you with an employment contract but then let you go after only five months. I also do not understand why they would ask you to sign a promissory note under the circumstances. There should be no question that you are entitled to the severance pay if it is in the agreement. I would like to ask you some questions to get more information about the situation though. Please send me an email or give me a call if you would like to talk further. Thanks!