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Losing a job is stressful enough, and being presented with a severance agreement can add even more questions. While these agreements may provide financial support during a transition, they often include legal terms that affect your rights moving forward. Before you sign, it’s important to understand what’s in front of you and when to seek guidance from an employment lawyer.
What Is a Severance Agreement?
A severance agreement is a contract between you and your employer that sets the terms of your departure. In exchange for certain benefits, such as a lump sum payment or continued health coverage, you usually give up certain rights, like the ability to pursue claims against your employer. Because it’s legally binding, you should read every section carefully and consider the long-term impact.
Key Terms to Review Carefully
Not all severance agreements look the same, but most contain provisions that can affect your finances and future employment. Pay close attention to:
- Severance pay: The amount, how it’s calculated, and when you’ll receive it.
- Health benefits: Whether your employer will extend coverage and for how long.
- Release of claims: Language that waives your right to sue for discrimination, wrongful termination, or other claims.
- Confidentiality: Restrictions on what you can share about your employment or the agreement itself.
- Non-compete or non-solicitation clauses: Limits on working for competitors or contacting clients.
- Return of property: Deadlines for returning company equipment or materials.
Even if some of these terms sound routine, small details can have a big impact.
When You Should Involve a Lawyer
You don’t always need a lawyer for every contract, but severance agreements often call for legal review. An employment lawyer can help if:
- The agreement includes restrictive covenants that limit your ability to work in your field.
- You believe your termination may involve discrimination, retaliation, or another unlawful reason.
- The release of claims seems unusually broad.
- You’re unsure whether the compensation being offered is fair for your role and years of service.
In Connecticut, you generally have at least 21 days to review a severance agreement if it involves the waiver of certain rights under federal law. That window gives you time to seek advice before making a decision.
Protecting Your Future Employment
One of the most overlooked aspects of a severance agreement is how it affects your next job. Restrictions on where you can work or who you can contact could stall your career if not addressed before you sign. An attorney can sometimes negotiate narrower terms, allowing you to move forward without unnecessary limitations.
How Stanfield Bechtel Law Can Help
At Stanfield Bechtel Law, we’ve helped employees across Connecticut review, negotiate, and understand their severance agreements. We take the time to explain what each provision means, how it affects your rights, and whether adjustments should be requested.
Our goal is to protect your financial security and preserve your career opportunities. If your agreement raises concerns, or if you simply want peace of mind, having an advocate on your side can make all the difference.
Moving Forward with Confidence
Signing a severance agreement is a significant decision. Before you put pen to paper, make sure you know exactly what you’re agreeing to and whether changes should be made.
Contact Stanfield Bechtel Law today to schedule a consultation and let us help you review your severance agreement.
Frequently Asked Questions About Severance Agreements in Connecticut
Do I have to accept a severance agreement?
No. You’re not required to accept a severance package. You can decline it if you believe the terms are unfair or want to pursue legal claims instead.
How long do I have to review a severance agreement?
If the agreement involves waiving federal age discrimination claims, you must be given at least 21 days to review it and 7 days after signing to revoke it. Employers may offer similar review periods in other cases as well.
Can I negotiate the terms of a severance agreement?
Yes. Many agreements can be negotiated, especially provisions that affect your ability to work elsewhere, the amount of severance pay, or confidentiality restrictions.
Should I have a lawyer review my severance agreement?
Yes, especially if the agreement includes broad waivers, non-compete clauses, or you suspect your termination involved discrimination or retaliation.