Signs You Need an Employment Law Attorney Before Signing That Severance Agreement

Getting handed a severance agreement can feel like a whirlwind. Employers typically present these documents during stressful career transitions, offering a lump sum of money in exchange for a signature. Because companies frame these agreements as standard procedure, many workers sign them immediately without reading the fine print.

If you’re facing an unusually short deadline, concerned about a release of legal claims, or unsure how the agreement could affect your future employment and compensation, these may be signs that you should seek legal guidance before making a decision.

At Boston Avenue Law in Tulsa, Oklahoma, we help employees assess severance agreements, spot unfair terms, and negotiate better outcomes. Reach out to us today to schedule a consultation and discuss your options. We serve clients in Sapulpa, Claremore, Wagoner, Broken Arrow, and the surrounding areas.

Unusually Short Deadlines to Sign

One of the most immediate red flags is pressure from an employer to sign an agreement right away. Companies sometimes use tight deadlines as a pressure tactic, hoping you will sign before you fully understand the terms. However, federal law grants specific protections regarding signing timelines.

Under the Older Workers Benefit Protection Act (OWBPA), an employee age 40 or older generally must receive at least 21 days to consider an agreement that waives Age Discrimination in Employment Act (ADEA) claims, followed by a seven-day revocation period after signing. Certain group termination programs require 45 days. If an agreement waiving ADEA claims gives you less than the required consideration period, it may not satisfy OWBPA requirements. Even when no statutory period applies, you may want legal advice before signing.

You Suspect Unlawful Termination or Discrimination

Severance packages almost always include a full release of claims. By signing, you may waive certain existing legal claims covered by the release, but the effect depends on the agreement's language and applicable law. Signing a release may waive certain discrimination or retaliation claims, depending on the agreement and applicable law, but it does not eliminate every available legal remedy or prevent an employee from filing an Equal Employment Opportunity Commission (EEOC) charge.

Employers may use generous severance packages to minimize liability when they know a termination was legally problematic. In our experience, companies often significantly increase severance offers when legal counsel identifies potential claims.

Overly Broad Non-Compete and Non-Solicitation Clauses

Severance agreements frequently contain restrictive covenants that extend far beyond your employment end date. These provisions can severely limit your ability to earn a living in your industry.

• Non-compete provisions: These clauses may restrict you from working for direct competitors within a specific geographic area or industry sector for a designated timeframe.

• Non-solicitation requirements: These restrictions may block you from recruiting former colleagues or contacting current clients and business partners.

• Nondisclosure provisions: These terms may prohibit sharing confidential company information, proprietary data, or trade secrets with future employers.

• Disparagement prohibitions: These covenants may restrict you from making negative statements about the company, its products, or its management staff publicly or privately.

Understanding how these restrictive clauses impact your future job prospects is vital. An overly broad non-compete clause can significantly limit your ability to work in your career field for months or even years. We can help you understand whether restrictive terms are enforceable and negotiate changes where appropriate.

Confusing Compensation and Benefits Calculations

Severance pay calculations aren’t always straightforward. They may be based on factors such as years of service, compensation, company policy, or the terms negotiated between the parties. The value of a severance offer may depend on which forms of compensation and benefits are included. In our experience, calculation errors may fail to account for earned bonuses, accrued paid time off, or expected commission structures.

Additionally, you need absolute clarity regarding health insurance continuation, stock options, and unvested equity. If your employer agrees to subsidize COBRA coverage as part of the severance package, the agreement should clearly state the amount and duration of that subsidy.

Our Oklahoma employment law attorneys can help identify earned compensation that may otherwise be overlooked. Reach out to us for a consultation.

The Agreement Contains a Release of Unknown Claims

Standard severance documents often include a "general release of claims" sweeping away every potential dispute between you and the company, including claims you might not even know exist yet. A blanket release may affect certain claims, but some statutory rights and claims cannot be waived in this manner. For example, Fair Labor Standards Act (FLSA) wage rights generally cannot be waived through a private out-of-court agreement.

According to the EEOC, waivers must be knowing and voluntary to be enforceable, particularly regarding statutory rights. We can review blanket release clauses to make sure you aren't inadvertently signing away essential legal protections that should remain intact.

Another factor that can affect enforceability is the law governing the agreement. Be aware that contracts may have a “choice of law” provision indicating the law of some other state is to be applied to the agreement. Such provisions are generally enforceable under contract law, but there are numerous variables that affect them in the employment law context.

We advise you to consult one of our employment law attorneys to understand how a choice of law provision may impact the enforceability of an employment-related agreement.

Protecting Your Future With Employment Law Attorneys

Working through a job transition is challenging, but you don’t have to review a severance contract alone. Accepting the first offer without legal oversight can limit your future earning potential and strip away valuable rights.

At Boston Avenue Law, we stand with employees during critical career transitions, giving them the clarity, strategy, and leverage they need to negotiate a fair agreement that honors years of hard work. Our firm in Tulsa, Oklahoma, works with clients in Sapulpa, Claremore, Wagoner, Broken Arrow, and the surrounding areas. If you were handed a severance agreement and want to make sure your rights remain fully protected, contact us today to schedule a consultation.

Frequently Asked Questions

How can Boston Avenue Law help negotiate my severance package?

Our team at Boston Avenue Law can review your agreement to identify unfair terms, calculate the true value of your potential legal claims, and negotiate with your employer for higher payouts, extended benefits, and better post-employment terms.

What services does Boston Avenue Law offer for employment disputes?

Our services at Boston Avenue Law include representing employees in severance negotiations, wrongful termination claims, workplace discrimination suits, wage disputes, and restrictive covenant reviews.

Why should I choose Boston Avenue Law for my legal needs?

At Boston Avenue Law, we combine comprehensive employment contract knowledge with dedicated client advocacy, providing workers with personalized attention and legal representation during career transitions.