A sudden and unexpected job separation causes a whirlwind of feelings. Of course, many people are uncertain about the future. Additionally, many people feel inadequate because they were “downsized” and others were not. They may even believe discriminatory conduct contributed to the job separation. In the midst of this whirlwind, employers often hand employees severance agreements which are full of Legalese and expect them to sign these agreements on the spot.
The cool-headed Paterson, NJ, severance attorneys at HKM explain your legal rights and also explain the severance package. New Jersey has some of the strongest employment protection laws in the country, but many workers are unaware of the extent of their rights. Furthermore, an experienced employment lawyer reviews your severance package, negotiates better terms with the employer, and protects you from signing away important rights. In short, working with a knowledgeable severance attorney ensures you receive fair compensation and avoid costly mistakes.
What is a Severance Agreement?
A severance agreement outlines the terms of emplyer/employee separation. Since New Jersey is an at-will employment state, employers in the Garden State are generally not required to offer severance pay, unless an employment contract or union agreement requires it. Nevertheless, many companies offer severance in exchange for a release of legal claims. A typical severance agreement usually includes employee-friendly provisions, such as:
- A lump sum payment or temporary salary continuation,
- Continued health insurance benefits usually on a temporary basis, and
- Payment for unused vacation or PTO.
A severance agreement, like any other contract, requires consideration. Each party gets something and gives something. In exchange for the aforementioned goodies, a typical severance agreement usually also include employer-friendly provisions, such as:
- A non-compete or non-solicitation clause,
- A confidentiality agreement, and
- A release of claims against the employer.
So, before signing, it is critical to have a severance attorney in Paterson, NJ review the document. Do not let the employer bully you into an immediate decision.
Once you sign, you may waive your right to sue for wrongful termination, discrimination, retaliation, or unpaid wages. Many employees do not know they have these claims until a Paterson severance agreement lawyer reviews their situations.
Why You Need a Severance Attorney in Paterson, NJ
Many employees assume severance agreements are non-negotiable. In reality, the opposite is true. Most employers expect some negotiation. A skilled employment attorney:
- Evaluates the Fairness of Your Severance Package: An attorney determines if the compensation offered fairly reflects your tenure, salary, position, especially compared to other severance agreements at other organizations. A lawyer also adds your potential legal claims to the mix.
- Identifies Potential Legal Violations: Were you terminated due to discrimination, retaliation, or whistleblowing? Federal laws enforced by the Equal Employment Opportunity Commission (EEOC) and New Jersey’s Law Against Discrimination provide strong protections. If your termination violates these laws, you may be entitled to much more than standard severance pay.
- Negotiates Better Terms: We mentioned that all contracts involve give and take. An attorney works on both ends of the severance agreement. Especially if an employee has potential claims, an attorney often obtains more severance pay and/or extended health benefits. At the same time, a lawyer removes restrictive non-compete clauses and ensures that the employee receives a neutral or positive reference
- Protects Your Future Employment Opportunities: Non-compete and non-solicitation clauses limit your ability to work in your chosen field. A local Paterson severance attorney understands how New Jersey courts evaluate these restrictions and can push to narrow or eliminate them.
Employees need severance attorneys, but they don’t need just any severance attorney. Look for a lawyer who has employment law experience, is dedicated to this area of law, and is accessible to clients.
Common Employment Law Issues in Paterson, NJ
Employees in Paterson and surrounding Passaic County communities may face several employment-related issues that intersect with severance agreements:
- Wrongful Termination: As mentioned, New Jersey is an “at-will” employment state. Employers can terminate employees for almost any reason at almost any time. However, they cannot fire someone for an illegal reason, such as discrimination or retaliation.
- Harassment: Quid pro quo harassment is illegal in New Jersey. The shy boss cannot ask the pretty intern to discuss a promotion over dinner. Hostile environments are also illegal. Employees have a right to do their jobs without fear of harassing behavior.
- Discrimination: Workplace discrimination based on race, gender, religion, disability, age, pregnancy, sexual orientation, or national origin is illegal under both federal and state law. These victims are entitled to substantial compensation.
- Retaliation: Basically, retaliation is indirect discrimination. If you reported harassment, unsafe working conditions, or other legal or safety matters, and were later terminated, you may have a retaliation claim.
- Wage and Hour Violations: Unpaid overtime, withheld commissions, or misclassification as an independent contractor are common wage disputes. A severance agreement should address any outstanding compensation.
An attorney usually resolves these employment disputes in an administrative action with an agency like the Equal Opportunity Employment Commission or in a civil court.
How the Severance Review Process Works
If you contact a severance attorney in Paterson, NJ at HKM, the review process typically includes:
- Initial consultation,
- Legal analysis,
- Negotiation strategy, and
- Final agreement review.
Many attorneys work quickly because severance agreements often include short deadlines (sometimes 21 days for employees over 40 under federal age discrimination laws).
Understanding Your Rights Under New Jersey Law
New Jersey has some of the strongest employee protections in the country. The New Jersey Law Against Discrimination (NJLAD) prohibits workplace discrimination and retaliation. Moreover, certain mass layoffs may trigger additional protection.
The Worker Adjustment and Retraining Notification (WARN) Act is a federal law requiring employers with 100+ employees to provide 60 days’ advance notice of mass layoffs or plant closures. It applies to layoffs of 500+ workers, or 50–499 workers if they constitute 33% of the site’s workforce. Violations can result in 60 days of back pay and benefits.
So, if your termination is part of a large workforce reduction in or around Paterson, you may have additional rights depending on the circumstances.
Frequently Asked Questions
Is severance pay required in New Jersey?
Generally, no. Severance is not mandatory unless required by contract, union agreement, or certain mass layoff laws.
How much severance should I receive?
While there is no fixed formula, a common starting point is one to two weeks of pay per year of service. However, this rule varies significantly based on your role and potential legal claims.
Can I negotiate my severance package?
Yes. Most severance agreements are negotiable, especially if potential legal claims give you negotiating leverage.
Should I sign my severance agreement immediately?
No. You should consult with a severance attorney in Paterson, NJ, before signing. Once signed, your legal claims may be permanently waived.
Contact a Diligent Passaic County Lawyer
Courts and administrative agencies must balance the interests of employers and employees in many cases. For a confidential consultation with an experienced severance agreement lawyer in Paterson, contact HKM Employment Attorneys, LLP. The sooner you reach out to us, the sooner we start working for you.
