If asked to name the biggest reasons that Montana is the best place to live, you would probably cite the scenic views, the sense of community, the food, and the relatively affordable cost of living. You probably would not mention that Montana is the best place to work for an employer that does not especially like you, because you probably take this for granted. Unlike most other states, Montana does not follow the rule of at-will employment. In at-will employment states, unlike in Montana, your employer has the right to fire you for no reason, unless you have an employment contract. Discrimination and retaliation are still illegal in at-will states, but in an at-will state, the burden of proof is on you to show that your employer fired you because of a protected characteristic or protected activity, instead of just because.
In Montana, employers cannot fire employees “just because;” instead, they must provide a justifiable reason for firing employees, even if the employee does not have a contract. When it is the employer’s decision to end the employment relationship, employers sometimes ask employees to sign a separation agreement to prevent legal disputes. The Bozeman separation agreements lawyers at HKM Employment Attorneys LLP can help you decide whether to accept, reject, or negotiate a separation agreement if your employer offers you one.
What is a Separation Agreement?
A separation agreement is a legally binding agreement that sets the terms of the end of the employment relationship. Employers offer a separation agreement when the employment relationship ends on the employer’s initiative, usually when there was no contract to begin the employment relationship. If the parties signed a contract when the employer hired the employee, the contract usually contains provisions about the rights and obligations of both parties in the event of an employer-initiated termination of the employee’s job. In some cases, the employer may draft a separation agreement that abrogates those provisions.
No two separation agreements are identical, but a feature they both share is that the employee promises not to sue the employer for wrongful termination. In exchange, the employer promises to pay the employee a severance package. The severance package includes money, usually equivalent to several months’ worth of the employee’s salary, either paid in installments or as a lump sum. It usually also includes continued health insurance coverage for six months to a year after the employee’s last day of work. Some severance packages include other benefits, such as letting the employee keep the car, computer, or phone that the employer issued to them, or the option to buy the employer-issued equipment at a discounted rate.
If Your Gut Is Telling You Not to Sign a Separation Agreement, You Should Listen
Most employees who receive an offer of a separation agreement sign it without hesitation. If you are losing your job anyway, isn’t it better to get a severance package than to walk away empty-handed? Remember, though, that employers offer separation agreements to make it look like they are not firing you. Sometimes, some or all of the employees get separation agreements and severance packages when the company goes out of business entirely or when another company buys the employer, and retaining the employer’s employees is not part of the terms of the merger. Other times, employers offer separation agreements when financial constraints require them to reduce their workforce. If you are one of many employees at your workplace who are losing their jobs at the same time, then signing the separation agreement is probably the best option.
Regardless of whether you have an employment contract, it is against the law for employers to terminate your employment for discriminatory or retaliatory reasons. Discrimination is when an employer fires you, or otherwise takes an adverse action against you, because of a protected characteristic such as your race, religion, age, sex, or disability. Retaliation is when an employer fires you, or otherwise takes an adverse action against you, because of a protected activity, such as requesting disability accommodations or reporting a workplace safety hazard to the Occupational Safety and Health Administration (OSHA). Your employer might make excuses about corporate restructurings and financial constraints, but if you suspect that your employer fired you because of who you are or because you exercised a legal right of yours, then you should not sign the separation agreement, at least not until after you discuss the matter with a Bozeman employment lawyer.
If You Choose Not to Sign the Separation Agreement Your Employer Offers You, What are Your Other Options?
It is easy to feel like you have no choice but to sign the separation agreement that your employer offers, especially if the income you earn at your job is the main source of income for your family. No matter the circumstances, you should ask for a few days to read the agreement carefully before you sign. Unless you are sure that your employer is being transparent about their intentions in ending the employment relationship, you should also review the agreement with a lawyer.
If you believe that discrimination or retaliation is the reason that your employer terminated your employment, even if your employer denies this, you should not sign the agreement or accept the severance offer. If you sign the agreement, you waive the right to file a discrimination or retaliation claim arising from the termination of your employment. If you do not think that your job loss is due to discrimination or retaliation, and layoffs at your organization are inevitable, you should still read the separation agreement carefully before you sign. An employment lawyer can help you negotiate for a better severance package.
Contact HKM Employment Attorneys LLP About Separation Agreements
The Bozeman employment lawyers at HKM Employment Attorneys LLP, can counsel you about separate agreements and severance pay and help you negotiate for an adequate severance package. Contact the employment lawyers at HKM Employment Attorneys LLP in Bozeman, Montana, to set up a consultation.
