Severance and Separation Agreements

Since the Law Offices of Fern Trevino opened its doors 15 years ago, its attorneys have negotiated hundreds of severance agreements.  In some instances, the attorneys counsel the client on how to negotiate the agreement, either because the client prefers to do so or because the attorney believes that due to specific circumstances, it would not be in the client?s interest to involve an attorney in the negotiations.

Typically, the employer will require the employee to waive all legal claims in exchange for severance pay and/or other benefits, and more often than not, the employer also forbids the employee from disclosing the existence or terms of the agreement.  By signing a waiver and release of claims, an employee may relinquish important rights, even if the employee is not aware of those rights.

Non-Compete and Non-Solicitation Agreements

Generally, a non-compete agreement forbids an employee from working for or owning a competitor for a specific period of time.  A non-solicitation agreement forbids an employee from soliciting employees to work for another employer for a specified period.  Some employers may require employees to sign non-compete and/or non-solicitation agreements at the time of hire, during the course of employment, or as a condition for a severance agreement.  Although such an agreement might be so poorly drafted that it would not stand up in court, it could still deter prospective employers from hiring an employee who is subject to a non-compete restriction.

We counsel employees before, during, and at the end of the employment relationship in connection with such agreements, and have often been successful in persuading the employer to waive the agreement in its entirety or to substantially modify the agreement to make it less onerous.

Employees should consult an attorney before signing such agreements as they may seriously impact future employment goals.  Employees who are thinking of leaving their employers to work for a competitor or to start their own business with co-workers should make sure that they are not bound by a non-compete or non-solicitation provision.

If you would like to have a severance, non-compete, or non-solicitation agreement reviewed, revised, or negotiated, feel free to contact us.