How to determine if severance pay is worth taking and negotiation of terms.

6 Comments

1. Dr. Erica WallsMay 22,2024 at 2:53AM UTC

   Your decision depends on lots of factors. Do you need the 6 weeks of pay, to tie you over? If so, can you negotiate for more? Also, do you want to stay in the same field? If no, the non-compete clause wouldn't matter. But if you do, and you have contacts at competing orgs, you may be able to transition there. In that case, don't sign. Think through your options before deciding. You'll make the right choice.

2. AnonymousMay 22,2024 at 11:38AM UTC

   In most states, non compete clauses are unenforceable. Pay an employment attorney to review the offer and advise you on your options. They can also represent you to negotiate a better separation package.

3. AnonymousMay 24,2024 at 6:56PM UTC

   Non-compete clauses are generally unenforceable. If you do sign the severance document be sure it includes a mutual non-disparagement clause. If you are over a certain age you also have 21 days to sign it. Be sure they do not deny you unemployment as well and if you can ask them to add that they will only give dates of employment and not information about regretted or non-regretted leaving to prospective new employers. Most companies give 1 week for every week of service if they give severance at all. I think it depends upon how long you were there and also were you part of a larger RIF? IF they left go of a certain amount/percentage of folks and they are a lrgers entity they must do a WARN act notification (google it). If you need cobra/benefits try to negotiate them covering the cost of that for a few months especially if you are over 40 and use doctors often. Keep in mind that medical coverage ends at the end of the month you were terminated in, and *YOU* must personally elect cobra it is *NOT* automatic. Get the documents for it that is separate from the severance documents. You have maximum 60 days to elect it or you lose the option for it, and often the cost is what the company paid plus a 10% fee on top. It is set by the insurance company not the employer unless they are self funded and you cannot change that cost. For example if the company pays 1000 for you and your family and you fill out the cobra documents it would cost you 1000 plus the 10% per month to continue that same coverage. You should IMHO ask for them to cover 6 months and if they balk be willing to accept 3 months coverage. If you accrued vacation and it shows on your pay stub and you still have some left they also needed to pay that out the day you exited along with any current wages due to the date you left. If they are delinquent you are due interest depending on the state you are in. Check the DOL website for info re your location.

4. AnonymousMay 26,2024 at 12:31PM UTC

   Non-compete clauses are not binding in certain states, like California. There is some momentum to remove them nationally, but that has not happened yet. You should consider countering telling them that you will not go to a competitor for six weeks (i assume they asked for a one year non-compete which is fairly standard). Depending on what you do, similar companies/products may be the easiest way to land something new do definitely push back. If you are willing to engage an attorney and they write a letter, that could also help your position with any negotiation.

5. AnonymousMay 26,2024 at 12:35PM UTC

   I thought there was a recent ruling banning non compete clauses. You should check into that. I would personally not sign a non-compete clause for just 6 weeks of pay unless I was desperate and had no other choice. Depending on what you do for work, it can be very hard to switch industries and could limit your options.

6. Kris WolframMay 27,2024 at 8:53PM UTC

   As people have said, most non competes are not enforceable. I wouldn’t sign anything for 6 weeks with that stipulation.