EMPLOYMENT AND SEVERANCE AGREEMENTS

Whether you are starting a new job or leaving one, signing an agreement can have serious consequences. Some of those consequences can affect you long after you sign.

An agreement may:

  • Limit where you can work after leaving your employer
  • Restrict what you can say about the company
  • Prevent you from bringing any claims against the company
  • Ban you from applying for rehire
  • Or impose other obligations you did not write and did not negotiate

Most people spend more time working than doing almost anything else. Your job plays a major role in your life. That makes these restrictions important. You should understand them before you agree to anything.

We have reviewed hundreds of employment and severance agreements. Because of this, we know what clauses matter most—and which ones people often overlook.

For a flat fee, we will review your agreement in detail. We will also speak with you by phone or in person to explain what it means and what options you may have.

Want to schedule an employment or severance agreement review? Simply click here.

DO NOT SIGN AN EMPLOYMENT OR SEVERANCE AGREEMENT WITHOUT TALKING TO AN ATTORNEY FIRST

Employers often hand employees a document and tell them to sign it. Sometimes they require it to start the job. Other times they require it to receive severance pay.

These agreements usually contain several important sections. Three deserve special attention:

  • Non-compete agreements
  • Non-solicitation agreements
  • Release language

NON-COMPETE AGREEMENTS

A non-compete agreement prevents you from working for a competitor after you leave your job. Many employers include this clause as the main reason for the agreement.

By signing it, you agree not to compete with your former employer for a certain period of time.

NON-COMPETE AGREEMENTS MUST BE LIMITED

Courts do not like non-compete agreements because they restrict a person’s ability to work. Still, courts will enforce them if they are reasonable in scope and duration.

For example, a five-year nationwide ban will likely fail in court. An 18-month restriction within a 30-mile radius stands a much better chance of being enforced.

Non-compete agreements usually apply when an employee quits. The idea is simple: a company should not fire someone and then block them from earning a living. However, this rule does not always apply. You should never assume a non-compete will not be enforced.

NON-SOLICITATION AGREEMENTS

Non-solicitation agreements have become even more common than non-compete agreements. These clauses prevent former employees from:

  • Soliciting customers
  • Recruiting coworkers

Courts review these agreements the same way they review non-competes. Again, reasonable limits on time and geography matter. An 18-month, 30-mile restriction often survives legal challenge.

WHAT HAPPENS IF YOU VIOLATE ONE OF THESE AGREEMENTS?

Violating a non-compete or non-solicitation agreement can cost you a lot of money. In many cases, you may have to pay the company’s attorney’s fees if they sue to enforce the agreement.

Most contracts include this penalty. That is why you must understand what you are signing before it becomes a problem.

RELEASE LANGUAGE

The main purpose of most severance agreements is simple: the employer wants your promise not to sue.

Employers dislike uncertainty. They want to avoid lawsuits for discrimination, retaliation, or other claims. To get that certainty, they often offer severance pay in exchange for a legal release.

If you sign it, you usually give up your right to bring any claim related to your employment.

Courts generally enforce these releases. That makes legal review critical. You do not want to give up valuable rights without understanding what you receive in return.

WE CAN HELP

At D’Orazio Peterson, we have extensive experience drafting, reviewing, negotiating, and challenging employment and severance agreements.

If you received an agreement and need legal advice, contact us today at 518-308-8339 or click here to schedule a consultation.

Contact Us Now

Employment & Severance Agreements

EMPLOYMENT AND SEVERANCE AGREEMENTS

Whether you are starting a new job or leaving one, signing an agreement can have serious consequences. Some of those consequences can affect you long after you sign.

An agreement may:

  • Limit where you can work after leaving your employer
  • Restrict what you can say about the company
  • Prevent you from bringing any claims against the company
  • Ban you from applying for rehire
  • Or impose other obligations you did not write and did not negotiate

Most people spend more time working than doing almost anything else. Your job plays a major role in your life. That makes these restrictions important. You should understand them before you agree to anything.

We have reviewed hundreds of employment and severance agreements. Because of this, we know what clauses matter most—and which ones people often overlook.

For a flat fee, we will review your agreement in detail. We will also speak with you by phone or in person to explain what it means and what options you may have.

Want to schedule an employment or severance agreement review? Simply click here.

DO NOT SIGN AN EMPLOYMENT OR SEVERANCE AGREEMENT WITHOUT TALKING TO AN ATTORNEY FIRST

Employers often hand employees a document and tell them to sign it. Sometimes they require it to start the job. Other times they require it to receive severance pay.

These agreements usually contain several important sections. Three deserve special attention:

  • Non-compete agreements
  • Non-solicitation agreements
  • Release language

NON-COMPETE AGREEMENTS

A non-compete agreement prevents you from working for a competitor after you leave your job. Many employers include this clause as the main reason for the agreement.

By signing it, you agree not to compete with your former employer for a certain period of time.

NON-COMPETE AGREEMENTS MUST BE LIMITED

Courts do not like non-compete agreements because they restrict a person’s ability to work. Still, courts will enforce them if they are reasonable in scope and duration.

For example, a five-year nationwide ban will likely fail in court. An 18-month restriction within a 30-mile radius stands a much better chance of being enforced.

Non-compete agreements usually apply when an employee quits. The idea is simple: a company should not fire someone and then block them from earning a living. However, this rule does not always apply. You should never assume a non-compete will not be enforced.

NON-SOLICITATION AGREEMENTS

Non-solicitation agreements have become even more common than non-compete agreements. These clauses prevent former employees from:

  • Soliciting customers
  • Recruiting coworkers

Courts review these agreements the same way they review non-competes. Again, reasonable limits on time and geography matter. An 18-month, 30-mile restriction often survives legal challenge.

WHAT HAPPENS IF YOU VIOLATE ONE OF THESE AGREEMENTS?

Violating a non-compete or non-solicitation agreement can cost you a lot of money. In many cases, you may have to pay the company’s attorney’s fees if they sue to enforce the agreement.

Most contracts include this penalty. That is why you must understand what you are signing before it becomes a problem.

RELEASE LANGUAGE

The main purpose of most severance agreements is simple: the employer wants your promise not to sue.

Employers dislike uncertainty. They want to avoid lawsuits for discrimination, retaliation, or other claims. To get that certainty, they often offer severance pay in exchange for a legal release.

If you sign it, you usually give up your right to bring any claim related to your employment.

Courts generally enforce these releases. That makes legal review critical. You do not want to give up valuable rights without understanding what you receive in return.

WE CAN HELP

At D’Orazio Peterson, we have extensive experience drafting, reviewing, negotiating, and challenging employment and severance agreements.

If you received an agreement and need legal advice, contact us today at 518-308-8339 or click here to schedule a consultation.

Contact Us Now