Denver Severance Agreement Lawyer

Denver Severance Agreement Attorney

Being let go from a job can be an unsettling and stressful experience, whether you were prepared for it or not. Severance agreements can help, but employers are always looking out for their own interests, so it is important that you look out for yours. If you are in the Denver area and facing the prospect of a severance package, seeking counsel from a seasoned Denver severance agreement lawyer can help you make sure you get a fair deal.

At King Employment Law, we help our clients get the fair treatment they deserve from their employers. From our office on York Street in Denver, we advocate for people in the city and the surrounding area with the legal knowledge and dedication it takes to get the job done. We approach each case with care and empathy, and our experience in federal court makes us a formidable choice for legal representation.

Severance Agreements

A severance agreement is a document that you and your employer both sign that delineates the terms of your termination. Severance agreements are not required by any state or federal law, but many companies provide them as a means of parting ways with employees amicably. Doing so helps the company maintain its reputation and discourages wrongful termination lawsuits. These types of agreements are a form of voluntary separation incentives that companies can offer.

Most severance agreements include a clause stating that the employee acknowledges that they were not wrongfully terminated and that they will not file any such claim against the company. Wrongful termination lawsuits can be incredibly costly for an employer, so providing such a statement in writing is a powerful protective move. In return, employees get severance packages, which are meant to ease the financial burdens of unemployment as they seek a new position. 

Common Inclusions in a Severance Package

Severance packages can look very different from company to company as they are an elective offering, not a requirement. The following are some of the most commonly included elements in a severance package:

• Pay. Many severance agreements have a provision for severance pay, which is intended to help the terminated employee bridge the gap between jobs. The pay can be either the employee’s regular salary for a specified period or a lump sum. For top executives, severance pay is a lump sum 50 to 60% of the time, and that rate increases to 65 to 70% for hourly employees.
• Insurance. Many severance packages also include continued health, dental, or life insurance coverage for the employee.
• Job search assistance. Some severance packages include provisions that help an employee secure a new position, such as a connection with an agency.
• Retirement or pension protections. Severance packages can also include specific protections for retirement accounts or pensions, depending on the employee’s situation and the employer’s means.

These are just a few of the most common building blocks of a severance package. Because these packages are unique to each company, they can vary greatly and can include essentially anything the employer wants, so long as it is legal. For example, some packages may specify that the employee gets to keep their company laptop or other equipment. Some may even allow the employee to continue using the company gym or other such perks.

Hire a Severance Agreement Lawyer

If you are facing the prospect of termination and expect to receive a severance offer, it is crucial to hire a severance agreement lawyer to review the agreement in Denver. Severance packages are, first and foremost, for the protection of the company. In exchange for continued pay and possibly other benefits, they want the terminated employee to agree that the termination is not wrongful and that they will not sue the company.

However, sometimes an employer is in fact guilty of wrongdoing, and sometimes the cost of restitution would be more than the cost of a generous severance package. If you think you may have grounds for a lawsuit against your employer based on discrimination, hostile work environment, or something else, you should consult an attorney before you sign any severance agreement. It may be better for you, financially and otherwise, to pursue a claim instead.

FAQs

Can I Receive Unemployment Benefits While Getting Severance Pay in Colorado?

Colorado does permit employees who receive severance pay to collect a portion of unemployment. However, it is determined by how much the severance benefit is and the frequency of payments in the agreement. To understand if you could still qualify for unemployment, review your severance agreement with a lawyer prior to finalization.

Can I Still Sue a Company if I Signed a Severance Agreement?

If you signed a severance agreement that included a clause saying you were not wrongfully terminated and would not file a claim against the company, you probably would not be successful in filing a claim. However, a severance agreement can be deemed invalid if the employee later learns that it was signed under false pretenses. If you think this situation applies to you, discuss it with your lawyer.

Do Companies Ever Offer Severance for Employees Who Leave Willingly?

Some companies offer severance packages for employees who leave willingly, not only for employees who are involuntarily terminated. This is especially true when companies need employees to resign to avoid layoffs. They may approach certain people with a severance offer if they agree to leave of their own accord.

How Is Severance Pay Usually Calculated?

Severance pay is not a legal requirement, meaning employers are free to calculate it however they wish. Most companies that offer severance pay calculate it based on years of service and role in the company. For example, an hourly employee may receive two weeks of severance pay for each year they have been with the company.

Change is difficult, and even more so when it involves uncertainty. If you are being terminated from a job, it may be tempting to sign the severance agreement without a second look. However, doing so may be an injustice to yourself. At King Employment Law, we can help you make sure that the deal you’re striking is fair to you. Contact us today to discuss your needs.