Employee Severance Negotiation Lawyer in Boston

Whether you’re leaving your job due to layoffs, a mutual separation, or company restructuring, it’s a major professional move. If your company offers a severance package, it may be able to help financially in some ways, but it may include gaps that leave you empty-handed. This is where a severance negotiation lawyer comes in. You need someone to negotiate on your behalf to ensure your rights are protected and that you have a stable financial future.

At Gordon Law Group, we are here when you need a severance negotiation attorney. We have the necessary experience to review your case and help negotiate a fair agreement.   

What is a Severance Agreement?

A severance agreement is a binding legal agreement between an employer and an employee. It details the terms of an employee’s separation from the company. These agreements often include:

• Additional compensation
• Health benefits
• Continued Salary

While these can all be helpful in lost employment situations, the agreement may also contain clauses that can prevent you from some future employment. It may also require you to sign away your right to pursue legal claims against the company. This includes claims for wrongful termination, discrimination, or unpaid wages.

What You Should Know About Severance Agreements

While severance agreements can look appealing, there are several things you should know before signing one: 

Offers are Rarely Set in Stone 

Employers often leave room for negotiation, expecting executives and professionals to counter.

Review Windows are Legally Mandated 

Under the Older Workers Benefit Protection Act (OWBPA), employees over 40 must be given at least 21 days to consider the agreement (45 days in group layoffs) and 7 days to revoke it after signing. Even if you are under 40, you should never feel rushed into signing away your rights on the spot.

Post-employment Restrictions may be Hidden 

Agreements often include non-compete, non-solicitation, or strict confidentiality clauses. These can severely restrict your ability to secure your next role in the local market.

When you have an employee severance negotiation lawyer on your side, they can review these agreements for you to ensure that you are not signing anything that is not in your best interest.

Common Severance Terms Employers Offer

A comprehensive separation agreement involves far more than just a lump-sum payout. When analyzing an offer, a severance negotiation lawyer looks at several key components:

• Salary Continuation: The number of weeks or months of pay, which is typically calculated based on your years of service or executive tier
• COBRA and Healthcare Subsidies: Payment or reimbursement for your health insurance premiums to ensure seamless coverage during your transition
• Bonus and Commission Payouts: Pro-rated portions of annual bonuses, commissions earned, or deferred compensation that you may otherwise forfeit when you leave
• Equity Vesting: Accelerated vesting schedules for stock options, restricted stock units (RSUs), or performance shares all need to be evaluated.
• Mutual Non-Disparagement: Clauses ensuring that not only do you refrain from speaking negatively about the company, but the company also agrees to provide neutral job references to future employers

At Gordon Law Group, we can explain these areas to you so that you know exactly what your severance package contains and whether it’s a good fit.

How We Work To Negotiate Higher Severance Packages

If your severance package is not in your best interest, we can negotiate a higher one. This can include several strategies.

We thoroughly review the circumstances of your departure to identify potential legal claims. Workplace retaliation, discrimination, breach of contract, or wage and hour violations are all issues that we look to see apply in your case.

When seeking a higher severance package, we also consider your contributions to the company and the unique timing of your departure to build a professional, merit-based case for increased compensation.

Our team has the experience to negotiate directly with corporate counsel or HR executives to work on your behalf. We also work to reduce overly broad non-compete and non-solicitation clauses that can limit your ability to work in certain markets. 

Severance and Tax/Benefit Impacts 

How a severance package is structured can significantly impact your net financial return. Proper legal structuring ensures you do not inadvertently lose a large portion of your payout to avoidable penalties.

Tax Allocations

Severance payouts are considered supplemental wages by the IRS. They are subject to mandatory withholding taxes, often at a higher flat rate than your standard income tax bracket. We can negotiate structured payouts over time rather than a lump sum to manage your tax brackets. We can also allocate portions of a settlement to non-wage damages, where permitted by law.

Unemployment Insurance Eligibility

In Massachusetts, the Department of Unemployment Assistance closely reviews severance payments. If your severance is structured as a continuation of your regular salary, it may delay or reduce your weekly unemployment benefits. However, if the agreement is explicitly structured as a lump-sum payment in exchange for a release of legal claims, you may be eligible to collect unemployment immediately. 

FAQ About Employee Severance Agreements

Can an employer revoke a severance offer if I try to negotiate?

While it is technically possible for an employer to withdraw an offer entirely, it is exceedingly rare in professional environments. Most employers present a severance agreement because they want something from you, usually a release of legal liability and a smooth transition. 

What happens if I violate a non-disparagement or confidentiality clause?

If you breach either of these, the employer may have the right to stop future payments, demand the return of the severance already paid, and potentially sue for damages. 

Can I negotiate for non-monetary benefits in my severance package?

Absolutely. Severance negotiations are not just about the payout amount. You can negotiate for an extension of employer-subsidized health insurance (COBRA), outplacement counseling services, among other things.

Are You Looking for Help with Severance Agreements?

When you need a Boston severance lawyer, Gordon Law Group is here. We have helped people in the Boston area negotiate the severance package they deserve. Contact us today at 617-536-8100 or reach out to us online to learn how we can help you.