Severance Negotiation

St. Louis Severance Negotiation Attorneys

Missouri Law Firm Representing Employees in Severance Negotiations

Employers often provide severance packages to employees as a strategic human resources practice. Employers may be obligated to offer severance due to conditions outlined in employment agreements. Often, these agreements specify severance terms to provide financial protection for employees – particularly executives and members of upper management – in situations like involuntary termination.

Employers may also offer severance proactively due to concerns about potential legal claims. Accepting a severance package almost always involves signing a release that bars you from pursuing any legal action against your employer. This is part of why it’s important to get legal advice before accepting a severance package.

At Sedey Harper Westhoff, we can aggressively negotiate a favorable severance agreement on your behalf if you’ve been offered an insufficient package or nothing at all. If you may have a legal claim involving discrimination, harassment, retaliation, wrongful termination, wage violations, or any other kind of illegal conduct, we can potentially use that leverage to get you better terms, especially if you would prefer not to pursue litigation. Our employment law attorneys are skilled negotiators with over 40 years of legal experience. We can develop and pursue a personalized strategy and fight for the best possible severance outcome.

Struggling to get the severance you need and deserve? Schedule a consultation with our St. Louis severance negotiation lawyers by contacting us online or calling (314) 819-0963.

What Is Severance Pay?

Severance pay refers to the compensation that an employer provides to an employee upon termination of employment. It is typically offered when an employee is laid off, let go due to downsizing, or in instances of company restructuring. It is not generally given in cases of termination for cause. The intent of severance pay is to provide financial support during the transition period as the employee seeks new employment.

Severance pay also acts as a legal safeguard for employers, as it often comes with a release agreement that limits the employee's ability to sue the company for claims relating to their termination. By providing severance pay, employers can mitigate the risk of legal disputes.

Factors Affecting Severance Amount

The amount offered in a severance package often takes into account an employee's contributions to the company, with factors like tenure, role, accomplishments, and the impact of their work playing significant roles in determining the offer. The legal risk associated with a departing employee can also play a pivotal role. However, these packages may not always align with your personal perception of your value or what you deserve. Despite your steadfast dedication and significant positive impact, severance calculations typically follow predefined formulas or guidelines, which may overlook the qualitative aspects of your efforts.

All of the following factors can influence the amount of severance an employee is offered:

Length of service. One of the most significant factors affecting a severance package is the duration of the employee's tenure with the company. Typically, longer-serving employees are offered more substantial severance packages, as their contributions over time are acknowledged with greater compensation. This is often calculated as a certain number of weeks' pay per year of service.
Position and level. The role and level of the employee within the organization also impact the size of the severance package. Senior executives or employees in high-ranking positions may receive larger payouts due to their responsibilities and influence within the company. This reflects the organization's valuation of their contribution and the likely complexity of their role.
Company policy and financial health. An organization's standard policies regarding severance also play a crucial role in determining package size. Companies with robust severance policies may consistently offer generous packages, whereas those with financial constraints might limit the severance provided.
Economic conditions. The broader economic landscape can influence severance payouts. During times of economic downturn or recession, companies might reduce severance packages due to financial strain, while during more prosperous times, they may offer enhanced benefits.
Individual circumstances. Employers will frequently consider the unique circumstances of each employee when determining a severance package. Factors like performance and behavior may influence the size and nature of the compensation offered upon termination.
Legal risk. If there is a risk that an employee might pursue legal action for issues like wrongful termination, discrimination, or breach of contract, the employer may enhance the severance offer to mitigate this risk. Such enhancements could include larger financial compensation or extended benefits so that the employee is more inclined to accept the severance package and sign a release agreement waiving their right to pursue any future legal claims.

When your employer refuses to offer an acceptable severance package, call (314) 819-0963 or contact us online to discuss your situation with us and learn more about your options.

When Is Severance Negotiation Appropriate?

Severance negotiation is appropriate when you are in a position to influence the terms of your departure, especially under conditions of involuntary termination that are not for cause or when you may have one or more legal claims against your employer. You may be able to successfully negotiate severance when you have significant tenure or hold a strategic position within the company, warranting a more personalized approach to your severance package. Specifically, negotiation may be advisable if the offered severance terms initially fall short of industry standards or are insufficient relative to your contributions and role within the organization. Additionally, factors like pending performance bonuses, stock options, or other deferred compensation should prompt negotiation so that these elements are rightfully included in the package.

If you have a potential legal dispute against your employer, such as claims of discrimination or wrongful termination, your employer may be compelled to offer better terms to avoid litigation. Our St. Louis severance negotiation attorneys can review your situation, advise you of the strength of your position, and walk you through your options and possible outcomes.

Common Severance Negotiation Tactics

Several negotiating tactics can be employed to achieve an optimal outcome for your severance package. Our team at Sedey Harper Westhoff is familiar with some of the strategies employers use to minimize severance offers and can fight to secure a fair outcome, especially if you have a potential legal claim. If your employer refuses to negotiate in good faith, we can provide transparent guidance on the next steps, which may include filing a formal complaint with the appropriate state agency.

Potentially effective severance negotiation strategies can include:

Demonstrating worth. We can work to highlight your tenure, impact, and contributions to the company, emphasizing accomplishments and areas where you've driven success. Quantifying achievements can provide a strong basis for negotiating higher payouts or additional benefits.
Researching industry standards. Our team can conduct thorough research into the typical severance packages provided within your industry and geographical location. Armed with data, we can approach negotiations with a clear understanding of what constitutes a competitive package.
Requesting non-financial benefits. While financial compensation is often paramount, we can consider negotiating for non-monetary benefits like extended health insurance coverage or stock options. These perks can considerably ease the transition to new employment or provide long-term value.
Framing the exit positively. Where possible, collaborating with your employer to present your departure favorably can improve negotiating outcomes. Discussing positive references or favorable public statements in exchange for signing a release might be advantageous.
Leveraging potential legal claims. If you have a viable legal claim against your employer, negotiating tactics may involve highlighting these issues as part of the discussion. The possibility of litigation, with its associated costs and reputational risks, can incentivize employers to offer a more generous settlement to avoid courtroom confrontation.

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Frequently Asked Questions About Wrongful Death in Missouri

Can I Negotiate My Severance Package Without a Lawyer?

Attempting to negotiate your severance package without a lawyer is not generally advisable due to the complexity and legal nuances involved. Severance agreements often contain legal jargon and conditions that can have lasting implications on your future employment and financial security. Without legal expertise, there's a risk of overlooking crucial terms that might limit your rights, such as non-compete clauses, overly restrictive confidentiality agreements, or waiver of future claims. Additionally, a lawyer can offer valuable insights into what constitutes a fair offer based on industry standards and your unique circumstances. They can also identify potential leverage points, especially if there are grounds for legal claims like wrongful termination or discrimination. Attempting to navigate these discussions alone might result in accepting a less favorable package, leaving you vulnerable to unforeseen consequences.
Am I Required to Sign a Severance Agreement?

Signing a severance agreement is not mandatory, and whether you choose to do so depends on several factors related to your specific situation and the offer presented by your employer. First and foremost, you need to understand what a severance agreement entails – typically, it includes terms like a release of claims, non-compete clauses, and confidentiality agreements in exchange for a financial payout or other benefits. Before deciding to sign, it's crucial to evaluate whether the compensation provided aligns with your needs and the potential rights you might be waiving.
One key consideration is the presence of any potential legal claims against your employer. If you believe that your termination was unjust or discriminatory, signing a severance agreement could bar you from pursuing these claims in the future. Moreover, if the offered package seems inadequate compared to your contributions or industry standards, it might be worth negotiating or seeking legal advice.
Understanding the long-term ramifications of signing is imperative. Non-compete clauses, for example, might temporarily limit your future employment opportunities within your industry.
Ultimately, while there is no legal obligation to sign a severance agreement, doing so may be beneficial in certain scenarios, especially when a generous package is offered that satisfactorily compensates you for your departure. Before making a decision, consider discussing the terms with our St. Louis severance negotiation lawyers to confirm that they are in your best interest.
What Should I Do If My Employer Is Pressuring Me to Sign a Severance Agreement?

If your employer is insisting you sign a severance agreement ahead of your exit, you should proceed with caution, even if the offer amount appears to be generous. There is likely a reason they are eager for you to sign your rights away.
Resist the urge to sign the document immediately, despite any urgency your employer may imply. Instead, request ample time to review the terms – this is a standard and reasonable request that most employers will grant. During this review period, it is highly advisable to consult with an employment attorney who can provide insight into the terms and ramifications of the agreement.
Analyzing the agreement with a lawyer's assistance can help you fully understand any legal language, clauses, or conditions that may have significant implications for your future, such as non-compete agreements, confidentiality clauses, and waivers of potential legal claims. Our legal professionals at Sedey Harper Westhoff can also evaluate the fairness of the severance package in the context of industry standards and your personal contributions to the company. If there are elements of the offer that seem inadequate or if there are potential legal claims regarding your termination, we can help you negotiate better terms.
What If My Employer Refuses to Negotiate Severance?

If your company refuses to negotiate a severance offer or declines to provide any type of severance package, try to verify whether there are any underlying reasons for your employer's reluctance. There might be company policies or standard practices that limit their flexibility in altering or offering severance agreements. Understanding this context can provide insights into how to proceed.
Next, assess the potential of any leverage you may have. Having valid legal grounds for a claim against your employer, such as wrongful termination or discrimination, can be a significant bargaining chip. In such cases, consider engaging with an employment attorney. Our St. Louis severance negotiation attorneys can provide personalized advice on whether a legal claim is viable and how to position it within the severance negotiation context to potentially reopen discussions. We can also evaluate whether the severance offer meets industry standards or if there are exceptional circumstances that might justify further negotiation.
If your employer remains firm in their stance, consider focusing on alternative forms of negotiation. While increasing the monetary aspects of the severance might not be possible, other elements could be negotiable. For example, look into the possibility of extending healthcare benefits, securing positive references, or requesting assistance in finding future employment. These non-monetary aspects can be valuable and influential in your career transition.
Finally, reflect on the overall severance package in light of your current situation and future aspirations. It might be the case that maintaining a positive relationship with the employer is more beneficial than pursuing an aggressive negotiation, particularly if you are assuming a position within a similar industry. Sometimes, amicable closure with a reasonable package can be more advantageous in the long term than intensifying disputes.

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