Even though severance pay is not required under California law, employers facing disputes with exiting employees should consider offering severance pay in exchange for a release of claims in order to preempt potential litigation. If an employee is at-will and either the employer or the employee decides to end the employment relationship, unless there is
Friday’s Five: Five answers to common questions about severance pay and severance agreements
Severance pay is not required under California law. However, employers who have potential disputes with employees that are leaving employment should consider whether offering severance pay in exchange for a signed severance agreement containing a release of claims against the company may be useful in avoiding costly litigation. Here are answers to five common questions…
Severance Agreements In California – Items To Consider
What does the agreement have to be titled?
I was recently asked if the severance agreement needs to have a specific title in order to be valid. The title does not have to contain specific words, and are usually titled "general release" or "severance agreement." The title, unless it is clearly erroneous or confusing, does…