St. Louis Executive Severance Attorneys

Why Executive Severance Lawsuits Arise

Employers sometimes seek to avoid paying substantial executive severance packages by scrutinizing the terms closely, searching for justifications like performance-related disputes or contract ambiguities to deny or reduce the severance payout. Some employers may even attempt to unjustifiably fire an executive “for cause” to avoid triggering a severance payout.

Breach of Contract Claims

Employers become vulnerable to breach of contract claims when they fail to honor the severance package as outlined in an executive's employment agreement. An employment agreement is a legally binding document, and unilaterally altering or ignoring its terms can constitute a breach. Such a situation arises when an employer withholds promised severance without valid grounds, especially if the underlying reasons are perceived as pretextual or unjustified. 

For example, if a company claims financial distress to nullify severance payments yet fails to provide sufficient evidence of this hardship, it could be deemed a breach of contract. Similarly, misrepresentations or vague arguments that an executive's performance fell short should be thoroughly scrutinized if they do not hold up against documented assessments or communications that previously indicated satisfactory performance.

If your employer is claiming they can’t fulfill your original severance agreement, we encourage you to reach out to our St. Louis executive severance attorneys. We can investigate your employer’s circumstances, review the terms of your contract, and advise whether you have a strong breach of contract claim. If you have a viable case, we can negotiate with your employer on your behalf and pursue litigation if necessary. 

Discrimination and Harassment Claims

Employers may attempt to terminate executives "for cause" by alleging discriminatory behavior or harassment, particularly when seeking to avoid paying large severance packages. Claiming that an executive has engaged in such behavior provides companies with grounds to bypass fulfilling severance obligations, as many agreements stipulate that payments are forfeited if termination is linked to misconduct. This tactic can be attractive to employers aiming to cut costs but often lacks substantiated evidence. In some cases, the allegations may be a strategic maneuver rather than a reflection of actual events, stemming from internal motives like personal vendettas, political dynamics within the company, or the intention to replace an executive with a less costly option.

If you have been falsely accused of harassment or discrimination, you may be a target for wrongful termination as a pretext to deny you severance. Our team at Sedey Harper Westhoff can assess the allegations brought against you and fight for your rights. 

Retaliation Claims

A denial of executive severance can be a subtle yet powerful form of retaliation against executives who have raised concerns or complaints about improper practices within a company. Retaliatory actions often occur when an executive has engaged in whistleblowing activities or has been vocal about issues that reveal company misconduct or unethical behavior. In such instances, the decision to withhold severance serves a dual purpose. It financially disincentivizes the executive from pursuing further legal action or public disclosure, and it sends a cautionary signal to other employees who might be contemplating similar actions. By denying severance under the guise of alleged performance issues or contract breaches, companies effectively punish executives for their dissent or advocacy, discrediting them while minimizing their financial security. 

Our attorneys are well-versed in the tactics some employers use to retaliate against executives by denying severance payouts. We understand the strategic approaches needed to challenge these denials effectively. By leveraging our extensive experience in employment law and contractual disputes, our legal team can identify instances of pretextual justifications, scrutinize any alleged performance-related issues, and meticulously dissect contract language to reveal its true intent. Our St. Louis executive severance lawyers can aggressively assert your rights, navigating the complexities of whistleblower protection laws and employing evidence-backed strategies to counter any fabricated claims of misconduct.