Don’t sign a severance agreement without first speaking with an attorney. You may be giving up legal claims with a monetary value substantially more than the amount of severance your employer is offering. Additionally, as explained in the sections below, severance agreements may contain terms that can have severe negative implications on your career. Severance agreements are often one-sided in favor of the employer. 

Hire a Miami employment lawyer at Cantrell Schuette to help you. For a no-cost consultation, contact us at 1-877-858-6868 or coordinator@caklegal.com. 

What provisions are typically included in a Florida severance agreement? 

A severance agreement, also known as a separation agreement or termination agreement, is a legal document that outlines the terms and conditions under which an employee’s employment will end, typically due to a layoff, downsizing, or termination. While the specific details of a severance agreement can vary based on individual circumstances and local laws, several common elements are typically included in such agreements. These include:

1. Severance Pay: from an employee’s perspective, the most important aspect of a severance agreement is the amount of severance pay. This is the amount of money or benefits the employee will receive upon separation. This may include a lump sum payment, a continuation of salary for a specific period, or other financial compensation. This amount can sometimes be negotiated by an employment lawyer. 

1. Termination Date: The effective date of the employment termination and when the employee’s benefits will end.

1. Release of Claims: A provision that states the employee agrees to release the employer from any potential legal claims related to the employment relationship. This is a standard clause where the employee agrees not to sue the employer. Once you sign it, you can generally never sue your employer or any of your supervisors – for anything. For that reason, it is crucial to speak with a Miami employer lawyer before signing a release of claims. Our Miami attorneys can vet whether you have any legal claims and, if so, the value of those claims. 

1. Confidentiality: A requirement that the employee keeps confidential information of the company, its clients, or business operations confidential, even after employment ends.

1. Non-Disparagement: An agreement that neither party will make negative or harmful statements about the other party. A non-disparagement provision will generally also prohibit you from speaking badly about the employer’s owners and management. 

1. Return of Company Property: A provision that the employee will return any company-owned property, such as laptops, documents, access cards, or other assets.

1. Continuation of Benefits: Information about whether the employee will receive any continued benefits, such as healthcare coverage or retirement benefits, and for how long. It is not normal for benefits to continue, except for executives and other highly compensated employees. 

1. Neutral Reference: While employers generally do not agree to provide a positive reference as part of a severance package, they often do agree to provide a neutral reference. A neutral reference generally consists of merely confirming your dates of employment and not providing any other feedback to other companies.  

1. Governing Law & Venue: A provision that specifies the applicable state law that governs the agreement and the venue for where any disputes concerning the agreement will be litigated. For example, if your employer is based in Miami, a severance agreement will likely state that Florida law controls the severance agreement and that any lawsuit regarding employment or the severance agreement must be filed in Miami-Dade County, Florida. 

1. Revocation Period. If you are over 40 or over, then severance agreements generally must allow a period of time after execution during which an employee can revoke the agreement. 

It is important to note that the specific terms and conditions of a severance agreement can vary significantly based on the employer’s policies, the employee’s position and length of service, and individual negotiations between the parties involved. It is advisable to consult with an employment attorney to review and negotiate the terms of a severance agreement to ensure your rights are protected. To speak with a Miami severance agreement lawyer, contact us at 1-877-858-6868 or coordinator@caklegal.com. 

What provisions are not typically in a Florida severance agreement?

While the contents of a severance agreement can vary depending on the specific circumstances and negotiations between the parties, there are certain items that are generally not included in a standard severance agreement. Here are a few examples:

1. Reasons for Termination: Severance agreements are more commonly used in cases of layoffs, downsizing, or termination without cause. And even where an employee is terminated for cause, it is rare that the severance agreement will include the reason for the termination. The reason for the termination is generally irrelevant for purposes of a severance agreement. 

1. Restrictive Covenants: Despite what your employer may have you believe it is not common for companies to include restrictive covenants in a severance agreement. The term restrictive covenant refers to post-employment restrictions, such as non-solicitation of clients, non-solicitation of employees, and non-competition. These restrictions can substantially impede an individual from finding new employment. 

1. Reference Letter: A severance package is generally offered after an employee is involuntarily terminated. As a result, is rare that a separation agreement will include a provision that requires the employer to provide a positive reference about the former employer to third parties upon request. 

1. Prior Agreements: A severance agreement typically does not include or reference any prior agreements between the employer and employee, such as the terms of a prior employment agreement, offer letter, handbook, or benefit plans.  

Remember, once you sign a severance agreement, you are generally locked in and cannot revoke it. You will never be able to file a lawsuit against your prior employer (or its owners or management), regardless of any new information you may find out in the future. You will also not be able to negotiate more severance pay after signing. Severance agreements are generally one-sided and oftentimes confusing. While signing a severance agreement may be the best option for you, it is important to first speak with an employment attorney who can provide you with guidance.

Please contact the employment lawyers at Cantrell Schuette for a consultation. We can be reached at 1-877-858-6868 or coordinator@caklegal.com.