If your employment has come to an end—whether through layoff, termination, or resignation—you may be offered a severance agreement. While it might seem like a routine part of the process, signing a severance agreement without understanding its terms can cost you valuable rights. For workers in Hamilton Township, this FAQ provides essential information on how severance agreements work and why legal review is crucial.
- What is a severance agreement?
A severance agreement is a legally binding contract between an employer and employee that outlines the terms of separation. It often includes a payment or benefit in exchange for the employee waiving certain rights, such as the right to sue for wrongful termination or discrimination.
- Is my employer required to offer severance pay?
No. New Jersey law does not require employers to provide severance pay unless it’s specified in a contract, collective bargaining agreement, or company policy. However, many employers offer severance voluntarily to protect themselves from legal claims.
- What should be included in a severance agreement?
Common provisions include:
- Severance pay amount and schedule
- Waiver of legal claims
- Confidentiality clauses
- Non-disparagement agreements
- Return of company property
- Non-compete or non-solicitation clauses
- Can I negotiate my severance agreement?
Yes. Severance agreements are negotiable. You may be able to increase the amount of compensation, limit restrictive covenants (like non-competes), or strike certain provisions altogether. An employment attorney can negotiate on your behalf and ensure you don’t sign away your rights unnecessarily.
- What rights am I giving up by signing?
By signing, you may be waiving the right to file lawsuits for:
- Wrongful termination
- Discrimination or harassment
- Unpaid wages or overtime
- Retaliation for whistleblowing or reporting illegal activity
You may also agree not to speak negatively about your employer or reveal the terms of your agreement.
- Should I sign a severance agreement without legal review?
No. Severance agreements often contain complex legal language that can significantly affect your future. It’s always wise to consult an employment attorney before signing. Once signed, the agreement is legally binding and difficult to undo.
- What if I already signed and regret it?
In some cases, you may have a short window to revoke your acceptance, especially if the agreement falls under laws like the Older Workers Benefit Protection Act (OWBPA), which requires a 7-day revocation period. Otherwise, challenging a signed agreement is difficult but not impossible, especially if you were coerced or misled.
How Castronovo & McKinney Can Help
Castronovo & McKinney, Employment Law Attorneys assist employees in Hamilton Township and throughout New Jersey with severance agreement reviews, negotiations, and disputes. Their attorneys will break down complex language, advise you on what’s fair, and protect you from signing away your rights.
Contact Castronovo & McKinney, LLC Today
Don’t sign a severance agreement until you fully understand its implications. Contact Castronovo & McKinney today for a confidential review and negotiation strategy that protects your future.
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Morristown, NJ 07960
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New York, NY 10170
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Fax: 646.755.3781
