Severance Agreements

Often employers decide to “settle” with a departing employee by offering severance pay and hoping to end all controversy and expense on the day of separation.  Some employers have paid significant severance, with no obligation to do so, only to be sued after the severance pay runs out.

Taft attorneys are experienced in drafting releases of claims in all types of employment litigation.  Care must be taken in drafting these releases as special and frequently misunderstood rules apply in some jurisdictions for certain claims.  A release that works well for some claims may be invalid for others.  Not all claims can be released by a severance agreement.  We caution against drafting an agreement without legal advice.