Losing your job is difficult enough without having to worry about whether your severance package is fair. Many employees in Milwaukee face this challenge when their employment ends, often feeling pressured to sign agreements they do not fully comprehend. Our Milwaukee severance attorneys at HKM Employment Attorneys can help you evaluate your options and protect your rights during this critical transition.
What Is a Severance Agreement?
A severance agreement outlines the terms of separation between the employer and the employee. When companies terminate workers, they sometimes offer severance packages that include compensation in exchange for certain commitments from the departing employee. These agreements typically require employees to waive their right to sue the employer for various claims related to their employment or termination.
Wisconsin law does not require employers to provide severance pay to terminated employees. This means any severance offer is generally voluntary on the part of the employer. However, there are exceptions. If your employment contract specifically promises severance benefits, or if company policy establishes such benefits, you may have a legal right to receive them.
The voluntary nature of most severance packages gives employers significant leverage in crafting terms that favor their interests. This is precisely why consulting with an experienced employment attorney before signing becomes essential. Once you sign a severance agreement, you typically cannot challenge its terms or pursue claims you have waived.
Common Components of Severance Packages
Severance packages can vary dramatically from one employer to another. The contents often depend on factors like your position, length of service, circumstances of termination, and company resources. Most agreements include several standard elements that employees should carefully examine:
- Monetary compensation calculated as a lump sum or continued salary payments
- Continued health insurance coverage for a specified period or COBRA assistance
- Provisions regarding accrued vacation time, bonuses, or commission payments
- Terms for stock options, retirement accounts, or other deferred compensation
- Non-compete clauses, confidentiality agreements, or non-disparagement provisions
The release of the claims section deserves special attention. This clause typically requires you to give up your right to pursue legal action against your employer for matters including discrimination, harassment, wage violations, or wrongful termination. Under federal and Wisconsin state law, certain rights cannot be waived, but many can be.
Why You Need Legal Representation
Many employees make the mistake of reviewing severance agreements on their own or accepting the first offer without negotiation. Employers often present these agreements with implied urgency, suggesting you must decide quickly. This pressure can lead to poor decisions that affect your financial security and future employment prospects.
A Milwaukee severance attorney brings objectivity to an emotional situation. When you have just lost your job, feelings of anger, fear, or relief can cloud your judgment. Your Milwaukee severance lawyer evaluates the agreement based on legal standards and your specific circumstances, identifying problematic terms you might overlook.
Severance agreements contain legal language that can be confusing to non-lawyers. Terms like “general release,” “tolling provisions,” and “clawback clauses” have specific legal meanings that impact your rights. Your severance lawyer in Milwaukee can explain these provisions in plain language and help you appreciate the long-term consequences of each clause.
Wisconsin employment law provides various protections for workers. An attorney can assess whether you have potential claims against your employer that would be worth more than the severance offer. For example, if you were terminated due to illegal discrimination or retaliation, the value of pursuing those claims might exceed the proposed severance payment.
Negotiating Better Terms
Severance agreements are negotiable, despite what some employers might imply. Companies often present initial offers that leave room for improvement. An experienced Milwaukee severance attorney knows which terms are typically negotiable and how to approach discussions with your employer effectively.
Increasing the financial compensation is often possible, particularly if you have been with the company for many years or hold a senior position. Your attorney can present arguments for additional payments based on industry standards, your contributions to the company, or potential legal claims you are releasing.
The non-compete and confidentiality provisions often contain excessive restrictions that limit your future employment options. Wisconsin law requires non-compete agreements to be reasonable in scope, duration, and geographic area. Your severance attorney in Milwaukee can negotiate to narrow these restrictions or remove them entirely when they are unnecessarily broad.
The timeline for payments can also be adjusted. Some employees prefer lump sum payments, while others benefit from extended salary continuation that helps with unemployment benefits or health insurance transitions. Your attorney can structure the payment terms to maximize your financial advantage.
Protecting Your Future Employment
The terms you agree to when leaving one job can significantly impact your ability to find the next one. Non-compete clauses may restrict where you can work and what type of positions you can accept. Non-disparagement provisions might prevent you from speaking honestly about your experience with potential employers who call for references.
Wisconsin courts will enforce reasonable non-compete agreements. The keyword is reasonable. Courts examine whether the restrictions are necessary to protect legitimate business interests and whether they impose undue hardship on the employee. An overly broad non-compete that prevents you from working in your field throughout Wisconsin would likely be unenforceable, but you do not want to face litigation to reach that conclusion.
Your attorney can help negotiate provisions that protect your career mobility while addressing your former employer’s legitimate concerns. This might include limiting the geographic scope, reducing the duration, or narrowing the definition of competing activities.
Special Considerations for Protected Classes
Federal and Wisconsin laws prohibit employment discrimination based on protected characteristics. These include:
- Age (40 and older under federal law, all ages under Wisconsin law)
- Race, color, national origin, or ancestry
- Sex, pregnancy, sexual orientation, or gender identity
- Religion or creed
- Disability or medical conditions
If you believe your termination involved discrimination, you should not sign any severance agreement before consulting an attorney. The Older Workers Benefit Protection Act gives employees aged 40 and over specific rights when reviewing severance agreements, including 21 days to consider the offer and seven days to revoke after signing.
Get Legal Help Today
HKM Employment Attorneys helps Milwaukee workers evaluate severance offers and negotiate terms that protect their interests. Our team reviews every aspect of your agreement and advocates for improvements when appropriate. Contact our firm to schedule a consultation and learn how we can help you transition to the next phase of your career with financial security and peace of mind.
