Severance Agreement Lawyer in Chicago

Helping Clients Negotiate Severance Packages

If you were laid off or terminated and your employer offered you a severance agreement, you should have it reviewed by a skilled severance lawyer before you agree to the terms. When you come to Atlas Law Center to review the agreement, we will highlight any concerns we have and answer your questions about the terms of the document.

We will also review your situation and discuss whether you have any potential claims under the various laws that impact your employment. Most severance agreements provide you with time to review the agreement. However, this varies from state to state, so do not delay in contacting an attorney before signing the agreement. Call our Chicago law office today to learn how we can help you.

What Is a Severance Agreement?

When an employer terminates an employee from their position, they sometimes offer a severance package that features severance pay, health insurance coverage, and other benefits that can help them financially survive until they find new employment. Before employees can get these benefits, they must sign a severance agreement, which is a legal document that specifies the terms of the employee’s termination.

In addition to outlining all the benefits to expect in the severance package, the agreement often requires employees to release any legal claims they might have against the employer. This means when you sign it, you typically give up your right to sue, file any legal claims, or try to financially benefit from the company further in the future. This is why you should speak with a lawyer before signing the proposed severance agreement when you get the initial offer.

Note that Illinois employers are not required to offer employees severance packages unless the employment contract says otherwise. However, some companies choose to do so to show they appreciate the employees’ contributions to the company, as well as to protect themselves from possible lawsuits or negative press in the future. This means severance packages have the potential to benefit both parties involved, but it’s essential to have a lawyer review the terms first to ensure you’re not giving up any rights that you might want to keep after your termination.

What Should You Negotiate in Your Severance Agreement?

Being offered a severance package can soften the blow of being terminated from your job, so being appreciative of the benefits you’re promised makes sense. However, keep in mind that there is room for negotiation when it comes to severance packages, so it’s best not to accept the initial offer until you talk to an employment attorney. They can consider any leverage you have when negotiating severance agreements to ensure you get the most beneficial results.

The average severance package includes:

Severance pay, which is usually based on your salary and how long you’ve worked with the company
Health insurance benefits for you and your family, such as medical, vision, and dental coverage that will continue for a specific period of time after your termination
Other benefits, such as life insurance, stock options, or bonus payments
Additional compensation for unused sick leave and vacation time
Assistance finding future employment, including reference letters, resume help, or access to job placement services

If your employer is able to offer any other benefits specific to the company, you can ask that they include them in your severance package, depending on what company policy allows. A skilled Illinois severance lawyer can help you negotiate this so you’re satisfied with your severance package when negotiations are over.

Of course, employers usually have specific requests for terminated employees to agree to before they get their severance pay. The goal for them is to protect their company from legal and financial issues in the future after terminating an employee. The following are some common terms your employer might ask you to agree to when you accept a severance package:

Confidentiality clause, which states that you agree not to share private company information
Non-compete clause, which prevents you from working for a competitor or starting a business in the same industry within a certain period of time and location
Non-disparagement clause, which seeks to protect the company’s reputation by preventing you from making negative statements about it after you no longer work there
Non-solicitation clause, which says you cannot try to convince your employer’s clients or other employees to leave the company and work with you
Release of claims, which means you’re giving up your right to sue your employer for workplace discrimination, wrongful termination, or unpaid wages and other wage and hour violations

Your employer might ask you to sign additional legal agreements when you accept your severance package, depending on the industry and your role at the company. Remember that you’re not required to agree to all terms right away, as you can negotiate before signing the severance agreement. So, if you’re unclear on any of the information in the contract, contact our Chicago employment law firm for clarification before signing the document. Our Illinois attorneys would be happy to help you get the severance payment you deserve without losing important legal rights in the process.

Why Should You Talk to a Lawyer Before Signing an Agreement?

While you might initially feel satisfied giving up certain legal rights in exchange for severance pay and other benefits, you should check with severance lawyers first to make sure this is advisable. It is possible that signing a severance agreement could prevent you from carrying out your plans for the future when it comes to finding a new job or exercising your legal rights.

For example, if you’re thinking about applying for a job with a competitor or starting a company that provides similar products or services as your employer, your lawyer might advise you not to sign a non-compete clause when you’re offered a severance package. That’s because this document would remove your legal rights to work with your employer’s competitors.

If there is any chance you’ll decide to sue your employer for wrongful termination, discrimination, sexual harassment, or other employment law violations, your lawyer will likely tell you not to sign the release of claims portion of your severance agreement. If you sign it, you could lose your right to seek justice through the legal system. So, before you make this decision, your lawyer might ask you questions about how your employer treated you during your time there. If it turns out you have a solid legal case involving discrimination or other issues, it may make sense to take legal action rather than sign a separation agreement.

As a terminated employee in Illinois, you have the right to carefully review your severance agreement with an employment lawyer before signing it. More specifically, you have 21 days to read the agreement before you sign it. You also have up to seven days to revoke it if you change your mind. This gives you time to consider how non-solicitation clauses, non-disparagement clauses, and other contract terms might affect your future. It also gives you sufficient time to ask a lawyer to help negotiate the terms to ensure you get the severance pay you deserve, including lump sum compensation, health insurance, and more. Call us today to learn more about Illinois severance agreements.

Are You Ready to Get Help from a Chicago Severance Agreement Lawyer?

If you were laid off or terminated and your employer gave you a severance agreement to sign, please contact Atlas Consumer Law immediately. Our Chicago employment law firm has helped several clients negotiate their severance agreements to ensure a fair outcome in each case. If you have questions or concerns about the terms in your Illinois severance agreement – such as whether you can still apply for unemployment benefits and how much your lump sum total will be – contact our legal team for advice.

Keep in mind that the passage of time can result in you losing certain legal rights, as there are strict deadlines involved in severance pay negotiations. To ensure you have time to fully understand the terms and come up with a counter offer, it’s essential that you reach out for legal advice as soon as possible. Our lawyers have extensive experience reviewing separation agreements and other types of employment agreements that can have a significant impact on employees’ lives. Call 630-394-6350 today to speak with a caring Illinois severance agreement lawyer about your rights and remedies.