The first thing you need to know about severance agreements is that they generally are not mandatory in Massachusetts. Massachusetts generally follows at-will employment, meaning that employers can generally terminate employment at any time unless there’s a violation of law, discrimination, retaliation, other prohibited conduct, and/or for other unlawful reasons. Severance agreements are generally contracts—once signed, they usually include releases that waive your legal claims against your employer.
The following are some of the common considerations that come into play when reviewing a severance agreement with an employment attorney:
Compliance with Massachusetts Wage Law
By law, if you’re terminated, your employer generally must pay you all earned wages (including accrued paid vacation time) on your last day of work; if you resign, payment generally must arrive by the next regular payday. This may include wages, commissions, bonuses, and accrued PTO. Any employer who fails to do so could face tripled damages and be obligated to reimburse you for reasonable attorneys’ fees and costs. Importantly, these wages generally cannot be withheld or bundled into a severance agreement as a pressure tactic.
Timing Rights in Age Discrimination Cases
If you’re 40 or older and your severance agreement includes a release of age-discrimination claims under the Older Workers Benefit Protection Act (OWBPA), federal law generally entitles you to at least 21 days to review the agreement (45 days if offered to a group), and a 7-day revocation period after signing.
Identifying Unfair or Unenforceable Provisions
Severance agreements may include clauses that are inequitable or overly broad, such as non-disparagement clauses, confidentiality obligations, non-compete or non-solicitation restrictions, liquidated damage provisions, or breach provisions. Massachusetts law has tightened non-compete enforcement and restrictions. In Massachusetts, in order to be enforceable, generally non-compete agreements must meet specific requirements.
How an Employment Attorney Can Help You Negotiate Better Terms
An Employment attorney can help you try to negotiate significant improvements to your severance agreement, including:
- Additional compensation
- Extended health insurance or COBRA coverage
- Clarity around reference language
- Removal or modification of harsh non-disparagement, non-compete, or confidentiality clauses.
If there are unfair separation terms in your severance agreement, your attorney can help push back on these terms, especially if the company insists on signing without delay and/or uses other pressure tactics.
When facing employment changes, trust the experienced attorneys at Maura Greene Law Group to review your contracts and severance agreements. Career transitions are stressful—don’t navigate complex legal documents alone. Our employment law expertise can protect you from unfavorable terms and ensure you understand your rights. Please contact us here or call 617-936-1580 to schedule a confidential consultation.
The Not So Fine Print:
Every case has its own unique facts. Before taking any action, contact an employment lawyer for advice on your specific situation. We can’t provide legal advice here, and this isn’t intended as legal advice. Keep in mind that it is best, if possible, to establish a relationship with an attorney before a workplace issue turns into a full-blown crisis.