Maximizing Your Severance Package: Expert Evaluation

How to Evaluate Your Severance Pay Package

When it comes to severance packages, it's not just about the dollars and cents – it's about knowing your rights and options. And there is limited information available about what is generally a reasonable severance offer.

That's where our experienced employment lawyers come in. We'll delve into the critical aspects of evaluating your severance offer and provide guidance on making informed decisions.

Understanding Severance Laws

While Massachusetts doesn't mandate severance offers, many employers extend them for various reasons. Whether as a gesture of goodwill or to mitigate future legal claims, it's important to comprehend the scope of your rights and claims.

If you have an employment contract outlining termination pay, its terms govern your entitlement. Typically, such contracts specify separation pay and benefits, often based on your tenure.

In cases with an employee handbook detailing a severance policy, your employer usually adheres to it, though these policies aren't legally binding. If you're offered more than what the policy suggests, your employer may have underlying concerns about potential legal liability.  

Release of Claims: A Critical Component

Most severance agreements entail a release of claims. This means you must ascertain if you have any potential legal claims arising from your employment and their potential worth.

For instance, if you belong to a protected class under state and federal discrimination laws, your termination might warrant discrimination investigation. Similarly, if you've recently taken medical leave, disclosed a disability, or reported workplace discrimination or harassment, you could have a retaliation claim.
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Suppose you have an employment contract limiting your employer's termination powers. In that case, it's crucial to review this with your attorney before accepting the severance.

Weighing Severance Pay Against Legal Claims

Determining whether your severance pay surpasses the value of your potential legal claims depends on two factors: the likely damages you'd recover if you pursued claims and the probability of success.

1. Damages: Typically, wrongful termination claims involve lost wages, attorney fees, and, occasionally, emotional distress damages. It's important to consider factors like how soon you might secure a new job and the offsetting effects of replacement income and unemployment compensation.
2. Chances of Winning: Success rates depend on several factors, such as whether you can provide evidence of discrimination or your employer has credible grounds for your termination. Additionally, your tenure with the employer and any history of adverse actions against people in your class (e.g., race, gender, age) can influence your case.

If you're over 40 and contemplating an age discrimination claim, review the layoff breakdown report required by the Older Workers Benefit Protection Act. It may reveal if layoffs disproportionately affected older workers.

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Our experienced team is here to help you evaluate your severance offer, understand your rights, and determine the best course of action for your unique situation.  You can use the button below to schedule a call back from a member of our team, or give us a call at  781-784-2322.

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