Richmond Severance Agreement Lawyer

Understanding the Concept of Severance and What It Could Offer

Severance generally refers to the end of a professional or working relationship. A severance agreement is a deal that can include both benefits and obligations. While California Labor Code 201 requires a company to pay out unpaid wages, accrued vacation time, and earned bonuses in some cases immediately upon termination, a severance agreement may include additional compensation and benefits.

These could be calculated based on an employee’s wage or earnings and then totaled to represent a specific length of time, such as six months or a year, of compensation following the end of a working relationship. A company’s agreement may also grant the soon-to-be former employee continued access to some company amenities, physical or digital, or allow them to continue receiving references from the employer.

What a Severance Agreement Could Require of You

While some companies offer severance agreements to employees whose positions were eliminated, who were unable to work due to health reasons, or who fell on bad terms with the company due to disputes, these agreements usually go both ways. A company may craft the agreement in such a way that an employee is bound to several obligations, including:

• A release of legal claims against the employer, and an agreement not to pursue further legal action against them
• Confidentiality agreements, which limit public discussion of employer and employee disputes related to the severance
• Non-competition and non-solicitation provisions, which prohibit the exiting employee from applying to the company’s competitors or reaching out to their clients for a set period

While some companies try to make these agreements seem lucrative, you may be missing out on a potential settlement if you sign one. If you contact our legal team to handle your severance agreement case, we can help you determine whether the agreement is fair. If it’s not, we can also help you contest, negotiate, and challenge it through a strong legal argument. 

Hire a Severance Agreement Lawyer

When you sign a severance agreement, you may be putting yourself in a bad spot legally. Choosing to hire a severance agreement lawyer allows you to avoid common traps, such as being rushed. Many companies pressure exiting employees to sign an agreement fast. But California Government Code 12964.5 notes that employees must be given time to review the agreement, and that it must be lawful. Hiring a lawyer can make it easier to understand the agreement fully. 

Another major mistake a person may make is signing off on their legal right to pursue claims related to unfair or unlawful discrimination or termination. A Richmond severance agreement attorney can help you see if the severance agreement is fair or whether it’s an attempt by your employer to hide from larger legal issues.

Why Severance Agreements Are Important in Richmond

Richmond, California, was home to 3,194 businesses in 2024, and this number is likely to increase as the population of 115,000 is full of potential entrepreneurs and passionate professionals. Any of these organizations could be involved in a dispute that results in a severance agreement. Even if it pays out a future portion of the area’s average salary of $61,408, it still may not be worth it to sign if the terms aren’t correct.