Receiving a severance offer after months of tensions might feel like the worst is over. But before signing, you should be aware that employers are prohibited by California law from employing this strategy to cover up unlawful behavior. You need to know exactly what you are giving up before you sign.
“Silenced No More” protects you
California law prevents an employer from coercing you to sign a non-disclosure agreement (NDA) that prevents you from discussing factual information about matters like retaliation, discrimination and workplace harassment. So if you notice a clause that suggests something along the lines of “hush money”, remember that the severance agreement may be partially unenforceable or legally deficient.
Remember the Section 1542 Waiver
If you suspect you have been subject to unpaid overtime, misclassification or even wrongful termination, look for the waiver of Civil Code Section 1542 and do not sign it. If you do, you will agree to forgo your right to sue for claims that you might not be aware of.
Avoid the “wages due” trap
Some employers may try to force you to sign a severance agreement by withholding your final paycheck but in California, they are legally required to pay all earned wages and cumulative vacation time immediately upon termination. Severance is paid in addition to what they already owe you.
Legal counsel is key
A severance agreement is a legally binding document that you have to review carefully. If you sign it immediately, you may lose valuable rights. Consult a lawyer to analyze your agreement.