#SeverancePackage #CaliforniaEmployment #EmploymentLaw #SeveranceNegotiation #EmployeeRights
Hey there! Dealing with a situation where your employer is asking you to wait to sign your severance package? It can feel confusing and leave you with many questions. But don’t worry, I’m here to give you some advice and insight into why your employer might be asking you to wait. Let’s dive in!
**Understanding the Situation: What is a Severance Package?**
A severance package is a set of benefits or compensation offered to an employee who is laid off or let go from their job. This package usually includes a financial payout, continuation of benefits, and sometimes outplacement services to help with the transition to a new job.
**Why is Your Employer Asking You to Wait to Sign?**
It’s understandable to have some concern and skepticism when your employer asks you to wait to sign your severance package. Here are a few reasons why they might want you to hold off on signing:
1. **Legal Requirements and Waiting Periods:** In California, there are legal requirements and waiting periods for employees who are being offered severance packages. Your employer might want to ensure that they are following all the necessary legal procedures before finalizing the agreement.
2. **Tax Implications:** Signing a severance package can have tax implications for both you and your employer. By waiting until January 5 or afterwards, your employer might be trying to optimize the tax implications for both parties.
3. **Waiting for Other Employees:** If there are other employees being laid off at the same time as you, your employer might want to wait until all the severance packages are ready to be signed in order to streamline the process.
**Understanding Your Rights:**
As an employee in California, you have certain rights when it comes to severance packages. Here are a few things to keep in mind:
1. **Review the Agreement Carefully:** Take the time to thoroughly review the terms and conditions of the severance package. Make sure you understand what you are being offered and any obligations that come with it.
2. **Negotiate if Necessary:** You have the right to negotiate the terms of your severance package. If there are aspects of the agreement that you are not satisfied with, you can discuss them with your employer and potentially reach a mutually beneficial resolution.
3. **Seek Legal Advice:** If you have any doubts or concerns about the severance package, it’s always a good idea to seek legal advice from an employment attorney who specializes in California employment law.
**Potential Pitfalls to Watch Out For:**
While waiting to sign your severance package might have legitimate reasons, it’s important to be aware of potential pitfalls. Here are a few things to watch out for:
1. **Expiration of Offer:** Make sure to clarify with your employer the deadline for signing the severance package. You don’t want to miss out on the offer due to a misunderstanding of the timeline.
2. **Changes to the Agreement:** There’s always a possibility that the terms of the severance package could change between now and January 5. Keep an open line of communication with your employer to stay informed about any updates or adjustments to the agreement.
3. **Employer’s Motivations:** While there could be legitimate reasons for your employer’s request to wait, it’s always important to consider their motivations. If something feels off or unclear, don’t hesitate to ask for further explanation.
**Final Thoughts:**
Dealing with a severance package can be a complex and sensitive matter, especially when your employer asks you to wait to sign. By understanding your rights, potential reasons for the delay, and staying vigilant about potential pitfalls, you can navigate this situation with confidence and clarity. Remember that seeking legal advice and open communication with your employer are crucial steps in ensuring that you make informed decisions regarding your severance package. Good luck, and I hope you are able to reach a resolution that aligns with your best interests! 🌟
I hope this advice helps shed some light on the situation, and remember that you are not alone in navigating these employment matters. If you have any further questions or concerns, feel free to reach out for additional support. Best of luck!
Because you’re waiving your rights to sue – for anything that has happened up until the signature date.
Leaving you signing on 12/20 leaves 15 days for something to happen that you haven’t waived your rights to.
It’s called saving your own ass legally. If something happened after you signed and you’re still employed there then you’ll eligible for another payday through court proceedings.
Your revocation period is only 7 days. I’m honestly surprised you got this before your actual last day of work.
Why the desperation of signing it now? You’re not going to get anything on them by signing early.
I would treat the early provision of the agreement as an opportunity to review it and seek legal counsel (if you want to). They are telling you that you won’t execute the agreement until your actual termination date.
There could be reasons that favor them and reasons that favor you.
But it really doesn’t matter.
Lots of contracts have a date on which they are executed and you just don’t sign them until that date. A house closing, for example. You may all agree on the price, etc. but you’ll still have a specified date upon which everyone signs and it becomes formal.
This is standard at my large company, everyone has an agreement to acknowledge first but it cannot be signed until after the actual separation date.
Nothing nefarious and if anything it is in your favor because you get more time to review it. Have an attorney review it if it will put your mind at ease.
Not a big catch. A severance agreement generally waives your right to sue the company for the termination or other issues during your employment. Some things are legally not able to be waived. If you signed now, anything that happens better now and the 5th isn’t covered under the agreement.
It gives you time to have a lawyer review it and advise you on content and when to sign it.
Are you part of a laid off group and if so, how many others?
Are you over the age of 40?
I know nothing of CA employment law, and I’m not a lawyer, but federally if you answer “yes” to both questions, the severance agreement has to meet certain requirements in order for your waiver (of your right to sue) to be valid. You are in a position to consult with an attorney before signing, and that is what I would do.
According to this:
[https://edd.ca.gov/en/uibdg/total_and_partial_unemployment_tpu_46035_-_reason_for_decision/#:~:text=Severance%20pay%20is%20not%20wages,claimant’s%20eligibility%20for%20unemployment%20benefits](https://edd.ca.gov/en/uibdg/total_and_partial_unemployment_tpu_46035_-_reason_for_decision/#:~:text=Severance%20pay%20is%20not%20wages,claimant's%20eligibility%20for%20unemployment%20benefits).
Your severance pay shouldn’t affect your eligibility for unemployment benefits.
Good luck!
I assume you aren’t the only one being laid off. We gave people a 45 day consideration period and if they signed beforehand they had to acknowledge they were waiving their right to the full time.