Severance packages can be offered to a worker in connection with their termination. These packages may include pay, benefits, or both.
If you are considering accepting a severance package from your employer, it is essential to review the terms with a severance attorney. There are no specific laws that make severance packages mandatory.
An employer is only legally required to provide unpaid wages or benefits in situations where a terminated employee is entitled to them. There are also no standards governing what must be included in a severance package.
In many situations, severance agreements require the employee to sign an agreement stating they will not sue their employer for wrongful termination. Some states require employers to provide severances when they are closing a facility or laying off a large number of workers.
Severance packages do not always include money and may include:
It may also be possible for you to negotiate your severance package terms based on:
It is important to have a lawyer for severance packages to help you during negotiations with your employer to ensure you receive a fair package. It is also important to note that a severance package is subject to taxation as income.
Your lawyer will be able to explain any local laws that apply to your severance, review your employment documents for employer requirements, and help you obtain the best severance package you can.
How much it will cost to hire a severance lawyer will depend on numerous factors, for example:
Some attorneys will handle employment law issues using contingency fees. With a contingency fee, the attorney will not be paid unless their client receives compensation or they win the case in court.
The percentage lawyers charge in these cases is usually between 20% and 50%. The lawyer and client will agree to the percentage that will be charged before the lawyer begins working on the case.
If a severance lawyer charges by the hour, it can range anywhere from $100 to $1,000 depending on the factors discussed above.
It is important to find a severance lawyer who fits your budget and with whom you are comfortable working. Things to look for in a lawyer include:
It is important to prepare for your consultation with a severance lawyer before you go to ensure you get the most out of the meeting. Prior to this meeting you should gather documents related to your employment, such as:
It is also important to make a written list of concerns or questions you have to discuss with your attorney during the meeting to make sure they are all addressed. This consultation is also a great time to discuss what fee arrangement the lawyer will use and what your payments will cover.
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