Home Q&A Forum Severance agreement and non-disparagement clauses?

Contracts

Severance Agreement

Connecticut

Asked on Jun 14, 2023

Severance agreement and non-disparagement clauses?

I recently left my job and was offered a severance agreement. In the agreement there were two clauses, a non-compete clause and a non-disparagement clause. I am concerned about the implications of these two clauses and how they will impact my future career prospects. I am looking for clarification on the language of the clauses and what I am allowed to do, and not do, once I have signed the agreement.

Answers from 1 Lawyer

Answer

Contracts

Connecticut

Answered 1150 days ago

Thomas L.

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Licensed in Connecticut
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March 21, 2023

I have drafted hundreds of non-competes and non-solicitiations (usually for the employer - always better to hire the other side when hiring lawyers). Thus I can provide you a review of the agreement in light of your career, and suggestions for improvement.

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Severance Agreement

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Asked on Jul 13, 2023

Severance agreement and confidentiality of terms?

I recently left my job of five years and was offered a severance agreement. I am now concerned about the confidentiality of the terms of the agreement, as I am worried that the terms of the agreement could be shared with other potential employers. I am seeking legal advice to understand my rights and obligations regarding the confidentiality of the severance agreement.

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Shelia H.

Answered Aug 26, 2023

In most cases, a severance agreement will have a confidentiality provision included. However, even if there is a confidentiality agreement, there are some instances where that confidentiality may be broken. For instance, in the case of a court order requesting the release of information or a government agency, such as the IRS or the state taxing or unemployment office, an employer may have to release information. There are also laws that prohibit the release of certain private information. In your case, it sounds as if your employer didn't include a confidentiality provision in the severance agreement, and for contracts, the general rule is that if a provision isn't included in the contract, it's not included in the contract. That being said, you may want to contact the employer and ask what the employer's policy is regarding the release of information to potential employers that you may be seeking to work with. There are also two laws that you may want to consider speaking to a NC-licensed attorney about. They are the following: 1.§ 1-539.12. Immunity from civil liability for employers disclosing information. "(a) An employer who discloses information about a current or former employee's job history or job performance to a prospective employer of the current or former employee upon request of the prospective employer or upon request of the current or former employee is immune from civil liability and is not liable in civil damages for the disclosure or any consequences of the disclosure." 2. § 14-355. Blacklisting employees. "If any person, agent, company or corporation, after having discharged any employee from his or its service, shall prevent or attempt to prevent, by word or writing of any kind, such discharged employee from obtaining employment with any other person, company or corporation, such person, agent or corporation shall be guilty of a Class 3 misdemeanor and shall be punished by a fine not exceeding five hundred dollars ($500.00); and such person, agent, company or corporation shall be liable in penal damages to such discharged person, to be recovered by civil action. " You can find more detailed information here: Source - https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/job-reference-and-0 You can also learn more about me here: www.sheliahugginslaw.com www.facebook.com/sheliahugginslaw www.instagram.com/mslegalista www.youtube.com/mslegalista

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Can a severance agreement be digital?

I recently accepted a voluntary severance package from my employer and have been asked to sign a severance agreement. I am curious if this agreement can be signed digitally, as I am not currently in the same city as my employer. I am looking for advice on the legalities of digital agreements and any potential risks associated with signing a severance agreement digitally.

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Answered Jul 27, 2023

In 1999 the California Legislature enacted the Uniform Electronic Transactions Act (the “UETA”), Civ. Code, §§ 1633.1 et seq., which provides that when a law requires a record to be in writing or requires a signature, an electronic record or signature satisfies the law. The law requires that any contract entered into between two parties may not be denied legal enforceability simply because of the use of an electronic signature. This has also be upheld in the employment law setting in some case law.

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I recently accepted a severance package from my employer. I am unsure of how to account for the payment I received in my taxes. I have looked into the specifics of the agreement and it does not provide any guidance on how to handle the payment. I would like to understand the proper accounting treatment for this payment so that I can accurately prepare my taxes.

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Severance payments are taxed as ordinary income.

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Can a severance agreement be enforced if I feel pressured to sign it due to a short timeframe and lack of legal counsel?

I recently lost my job and was presented with a severance agreement by my employer. However, I feel pressured to sign it because the company has given me a short timeframe to review and accept the agreement, and I do not have access to legal counsel to help me understand the terms and potential implications. I am concerned that if I sign the agreement without fully understanding it, I may be waiving important rights or benefits that I am entitled to. Can a severance agreement be enforced under these circumstances?

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Merry K.

Answered Dec 27, 2024

My answer depends on many factors. First, if you are an "at will" employee (no employment contract), the employer can fire you for zero reason and with zero notice, and you have no rights unless you can prove that the employer is violating state or federal law (such as firing you for illegal discriminatory reasons, for submitting a safety complaint, or something similar). If you do have an employment contract, or possibly if you are 40 or older, you have the right to be given 21 days to review a severance proposal. I suggest that you submit a proposal here on Contracts Counsel, with a short turnaround, and ask an employment attorney to review the proposal and your employment situation with you. I generally engage in this sort of review myself, but, unfortunately, am not available until the end of January. Another option is to find an attorney through this national employee's attorney organization: NELA.org In either case, prepare yourself to pay $300 - $500 for a thorough review and discussion. Good luck to you.

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Asked on Feb 8, 2023

In florida, 70 employees at my business they lay off 10 and give severance to 8 out of the ten, myself 5 year employee and a 2 month employeee and both are sales others are operation, do have rights to get the same severance?

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Moxie M.

Answered Feb 17, 2023

Generally, in Florida, severance is a gift. $1 of severance is usually $1 more than an employer is obligated to provide. An offer of severance may be required if an employee has an employment agreement providing for severance or is otherwise subject to a collective bargaining agreement that provides for severance. Severance agreements that are only offered to certain employees in a discriminatory manner (such as based on age, religion, national origin, sex, etc) may be a violation of local, state and/or federal law.

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