Understanding Severance Negotiations: What is a Release of Claims?

Are you an employee in Florida who is preparing to leave a job position or who recently left a job position? The transition can be hard—even if you are ready to move on to a new professional challenge. A severance package can help to reduce the financial strain. Before you agree to accept severance, it is imperative that you understand the terms of the agreement. Most often, you will be required to sign a release of claims. In this article, you will find a quick guide to release of claims and severance negotiations for employees in Florida.

Background: Severance Pay is Not Guaranteed By Law (Federal or State)

There is no legal right to a severance package. Neither the federal Fair Labor Standards Act (FLSA) nor any Florida state labor regulations mandates that employers pay severance. Instead, it is a discretionary benefit provided by employers.

Employers Often Severance to Get a Benefit—Usually to Get a Release of Claims 

Given that severance is not required by law, it is important for employees in Florida to understand why employers offer severance. To be sure, some companies may simply want to help workers ease the transition. Still, employers offer to pay severance in many cases because they also get a benefit. What is that benefit? The primary one is a signed release of claims from an employee. A release of claims is effectively a legally enforceable agreement through which an employee consents to not pursue any type of legal action against the company related to their employer or their discharge.

 Know the Implications of Signing a Release of Claims 

Before signing a release of claims, it is crucial for employees to understand the legal implications of this agreement. Signing a release typically means relinquishing the right to sue the employer. It is almost always a required condition of accepting a severance package in Florida. If you sign a release of claims, you should know the following:

• You will not be able to sue your employer for discrimination;
• You will not be able to sue your employer for sexual harassment;
• You will not be able to sue your employer for a wage and hour violation; and
• You will not be able to sue your employer for wrongful termination.

 You Have the Right to Negotiate for a Better Severance Package 

If you believe that you may have a viable claim—or if you simply feel that the current severance package proposal from your employer is not good enough given your contributions to the company—it is important to know that you have the right to negotiate for a better deal. With the right negotiation strategy, you can seek more compensation, extended benefits, or other favorable terms. A top-rated Florida employment law attorney can help.

 Get Help From a Severance Agreement Lawyer in Florida 

Severance pay can help an employee ease the transition after leaving a job. Before you sign a severance agreement, it is crucial that you understand the implications of a release of claims. An experienced Florida employment lawyer can help you navigate severance negotiations.