Legal Question in Employment Law in California

Re: Terms of an executive severance agreement

The terms in a severance agreement may vary as vastly as the imagination can go, particularly where they are negotiatble. Some plans are fixed, where there is no discretion, just a formula that must be followed. Some are negotiated depending upon the concern the employer may have it may be sued and wants to get the employee to sign a release of all claims.

Typically, the higher level the employee, the higher the amount of severance (i.e. 1 to 2 years, for executive level employees). Mid-level managers often are offered 6 months. However, this may vary as a variety of factors enter into the decision, too numerous to list here.

Some employers offer outplacement services. Some offer specified recommendations. All require a release of all claims. All require confidentiality. Some include a promise not to solicit customers or induce employees to leave.

If you are over 40, you will be given at least 21 days to seek advise from an attorney and to think about it before signing and 7 days to change your mind. Once offered, have it reviewed by an attorney to answer any questions and help you decide if you are waiving any important rights you could be pursuing.