Houston Lawyers for Severance Agreements

Understanding Your Rights in Regard to Severance Package Laws

Companies are not required by law to provide severance packages to employees. As a result, severance agreements are offered at the discretion of an employer. Most severance agreements extend medical benefits and pay for a limited amount of time on the condition that the employee waives his or her right to sue the company.

In cases where age discrimination is a concern on the part of an employer, an employee may be given 21 days to decide whether or not to accept a severance package. This is intended to protect the company from allegations that they used pressure to force an employee to accept an offer. Since there are a number of legal and financial issues that must be considered when evaluating a severance package, consulting a Houston employment law attorney at Shellist Lazarz Slobin before you sign may be the best way to protect your interests and your rights.

Protect your rights before signing a severance agreement. Contact us online or call (713) 352-3433 to have an experienced Houston severance agreement lawyer review your offer and discuss your options.

Why Ask a Lawyer About My Severance Package?

At Shellist Lazarz Slobin, our employment law attorneys in Houston work closely with clients in evaluating the terms and conditions of a severance package. To discuss your case, contact severance agreement lawyers at Shellist Lazarz Slobin today.

A Houston severance agreement lawyer from our firm can explain:

• What claims, if any, are worth pursuing against a company
• Whether you have a good chance of winning
• What you can do to clarify ambiguous terms

Severance Package Agreements and Enforceability

The enforceability of a severance agreement is essential in order to enforce the release of rights on the part of the employee not to pursue a claim against the employer. In order for a severance agreement to be enforceable, an employer must offer an employee something over and above what they would normally receive upon separation from a company.

For example, a severance agreement could include unused sick pay, vacation pay, an extension of health care coverage, or even continued contribution to an employee's 401k account—whatever the employer decides. If a severance agreement does not include these kinds of additional benefits, an employee may be released from a non-compete agreement as well.

Negotiating a Severance Agreement or Severance Package in Texas

It is not uncommon for employers to use a severance agreement to diffuse potential whistleblower actions, discrimination/retaliation lawsuits, wage and hour disputes, and other employment claims. Understanding what your rights and obligations are in the context of several competing legal and financial concerns is essential in determining whether or not you should accept a severance package.

When you are facing the decision to accept a severance package agreement, our firm can investigate your rights with regard to health care, disability coverage, Consolidated Omnibus Budget Reconciliation Act (COBRA) matters, and Employee Retirement Income Security Act (ERISA) claims that may arise from your mid-career loss of employment. We are prepared to give you quick, relevant advice when you are under time pressure to accept or decline a severance package agreement. On the other hand, we can also represent you in the event of a severance package agreement that you have already signed.

Common Severance Agreement Terms to Review Carefully

When you receive a severance agreement, it is important to understand more than just the amount of severance pay or the length of continued benefits. A careful review can help you identify provisions that may affect your future employment, financial interests, and legal rights under Texas law.

Key terms to review include:

• Release of claims against your employer
• Non-compete and non-solicitation provisions
• Confidentiality requirements
• Non-disparagement clauses
• Bonuses, commissions, equity awards, and deferred compensation

It is also important to review any signing deadlines, revocation periods, and venue provisions that determine where disputes must be resolved. Understanding these terms before signing can help you make a more informed decision and avoid unexpected issues later.

Severance Agreements for Executives and High-Level Employees

Executives and high-level employees often receive severance agreements that are more complex than those offered to other workers. These agreements frequently involve multiple compensation plans and additional contractual obligations that require careful review before a decision is made.

Rather than reviewing the severance agreement by itself, we examine it alongside employment contracts, incentive plans, and other compensation documents to identify how the terms work together. 

We also evaluate important executive-specific provisions, including:

• Stock options, restricted stock, and other equity awards
• Bonus and incentive compensation
• Change-in-control benefits
• Equity vesting and departure classifications
• Confidentiality, non-compete, and non-solicitation provisions

By reviewing these issues together, we can identify potential concerns, explain how the agreement may affect your compensation and future obligations, and help you negotiate terms when appropriate.

Concerned about restrictive terms or waived claims? Call (713) 352-3433 right away to discuss your severance package with a skilled legal team.

Frequently Asked Questions

How Much Time Do I Have to Review a Severance Agreement?

The time available depends on your circumstances, your employer's deadline, and applicable law. Employees age 40 or older may receive additional review periods under certain federal laws. Before signing, a Houston employment law attorney can explain applicable deadlines, review your rights, and help you make an informed decision.

Can I Negotiate the Terms of My Severance Package?

In many cases, yes. A severance package may be negotiable depending on your position, the reason for your separation, and any potential legal claims. You may be able to negotiate compensation, benefits, restrictive covenants, references, or other terms before signing.

What If I Already Signed a Severance Agreement and Now Have Concerns?

Although signing a severance agreement generally creates binding obligations, there are situations where legal issues may still exist. Some agreements include limited revocation periods, while others may raise questions about enforceability. Review your documents with an attorney as soon as possible to understand your options.

Do I Need a Lawyer If My Severance Agreement Seems Straightforward?

Even simple agreements can contain provisions affecting future employment, legal claims, or compensation. A Houston severance agreement lawyer can explain unfamiliar language, identify unfavorable terms, and determine whether revisions should be requested before you sign.

What Should I Bring to an Initial Severance Agreement Consultation?

Bring your proposed agreement, employment contract or offer letter, bonus or equity documents, recent performance reviews, and communications regarding your separation. These materials help a Houston employment attorney evaluate your situation and provide more specific guidance about your legal options.

Contact Our Houston Severance Agreement Lawyers Today!

If your employer has offered you a severance package, it is important to ask a lawyer for advice in order to secure your best interests. Our employment law attorneys in Houston are experienced and knowledgeable.

Contact the Houston employment law attorneys at Shellist Lazarz Slobin today at (713) 352-3433 to schedule an appointment and learn how we can help you.