Below are some frequently asked questions (FAQs) about severance agreements in Massachusetts and responses to those questions:
1. What is a severance agreement? A severance agreement is a contract between an employer and a current or former employee that typically exchanges a release of claims from the employee for certain pay and/or benefits from the . . . → Read More: Massachusetts Severance Agreement FAQs
An employee who is also a minority shareholder in a Massachusetts closely held corporation has significantly greater rights than an employee at will. What is a “closely held corporation?” A closely held corporation is one that (1) has few stockholders, (2) no ready market for the stock and (3) the majority stockholder is substantially involved . . . → Read More: Rights of Minority Shareholder/Employees in Close Corporations
Severance agreements are usually drafted with the employer in mind. While the agreement may give some weeks or even months of severance pay to the employee, the exchange may or may not be fair. If the agreement hasn’t been negotiated, there is a good chance that it has been written by the company’s attorney to . . . → Read More: Severance Agreements and Collecting Unemployment Benefits
Signed severance agreements in Massachusetts are contracts that outline the rights and responsibilities of the company and the employee. Typically severance agreements are drafted by the company to protect its interests. Despite the fact that the severance agreement may be one-sided, employees often just sign the agreement without fully understanding it.
It is important that . . . → Read More: Negotiating Massachusetts Severance Agreements
What rights, if any, do employees (non-union) have when they are laid off or fired from their jobs? First, Massachusetts law requires that the employer give the employee all wages owed. If the company lets the employee go, the employee must be paid on his or her last day, not during the next pay cycle. . . . → Read More: Rights of Laid Off and Fired Employees in Massachusetts
Before you sign that severance agreement in Massachusetts, consider whether there are documents that may have an impact on it. A severance agreement is a contract and employees should know the legal impact of the document before they sign it, even if it offers substantial severance pay. Here are a few of the documents you . . . → Read More: Before You Sign that Severance Agreement!
When employers present employees in Massachusetts with severance agreements, they are typically looking to accomplish certain goals, such as: (1) assisting the employee in transitioning to a new job, (2) having the employee waive certain legal claims such as the right to file a complaint for age discrimination; or (3) reinforcing agreements the employee previously . . . → Read More: Understanding Massachusetts Severance Agreements (Part II)
Employees frequently ask how their unemployment will be affected by severance payments when they are let go by a company in Massachusetts. Employees who are separating from their company and have been granted severance pay are often filing for unemployment benefits shortly after leaving their job. Depending upon how the agreement is written, the severance . . . → Read More: Massachusetts Severance Pay and Unemployment Benefits
Attend any event for employees in transition in Massachusetts and you will find a great number of older workers. According to a recent article in the New York Times entitled: “Older Workers Without Jobs Face Longest Time Out of Work,” the typical length of time out of work for a worker between the ages of . . . → Read More: Top Ten Tips for Older Workers In Understanding Severance Agreements in Massachusetts
Termination of employment can be an enormously stressful situation for an employee. Given the typical emotional and financial fall out from a firing, it can be difficult to know how to handle the situation. Here are five things employees who are fired or laid off from their jobs in Massachusetts need to know.
. . . → Read More: Five Things Fired Employees Need to Know About Termination of Employment