Being laid-off or discharged from employment is a stressful situation. In some instances, your employer may provide you with a separation agreement in which they offer you some money in exchange for your signing of the document. This may seem like a nice gesture (and, on occasion, it is), but if you receive a separation or severance agreement, there are several reasons why you may want to discuss it with an attorney:

The Severance Payment
Sometimes employees may already be entitled to severance, whether it is in an employment contract or company policy. If this is the case, an employee does not need to sign the agreement in order to be eligible for the compensation being offered. In other cases, the employer may disguise money already owed (for instance, a PTO payout) as money being offered. If your employer is obligated under law to pay this, and they don’t, you may be eligible for the full payment and other penalties would could more than double the amount of pay you are eligible to receive.
Release of Claims
Another critical reason to discuss your severance agreement with an attorney is to understand the release of claims. Most people realize that they are releasing claims (i.e., giving up the right to sue for legal wrongdoing) by signing the agreement. What most people don’t realize is whether and, if so, what claims they are in fact giving up. If your employer has violated the law, they are liable to you for damages. If you sign the agreement, you may be giving up the right to pursue what you are owed (for example: wrongful termination claims). We’ve represented dozens of clients who have been offered severance agreements and been able to obtain settlements in excess of $100,000 on several occasions.
Non-Disparagement Clauses
If you look through your separation agreement, you’ll likely come across a ‘non-disparagement’ section that prohibits you from saying anything negative about your former employer. But this clause should operate both ways. In other words, you should ensure that your employer agrees not to say anything negative about you that could interfere with your ability to find other employment or obtain the highest salary offer possible.
Non-Competes and Non-Solicitation Clauses
Sometimes your employer will try to prevent you from competing or drawing other employees away from the company. If you haven’t already signed a non-compete or non-solicitation clause, this is not the time to do so. If you’ve just lost your job, the last thing you want to do is limit your options for other employment. If your employer wants this limit, they should be willing to pay you a premium for agreeing to it.

These are just a few of the key reasons to have an attorney review your severance or separation agreement. Each case is unique, and therefore your particular needs are best protected by consulting with an attorney to discuss your agreement.