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We will explore the difference between a severance package and a severance agreement. You will learn the key elements of a severance agreement and what you need to do to afford your company maximum protection against employee lawsuits, administrative complaints with government agencies and whether your severance arrangements may be subject to ERISA laws.
When done properly, severance arrangements can be an extremely valuable risk management tool for employers—but you need to be aware of the pitfalls. Many employers think that if they offer severance pay conditioned on certain restrictions that they have eliminated all legal risks, and assume everything is fine—until it’s not.
For example, do you condition severance pay on promises not to sue and other post-termination restrictions? Did you know that you might be contractually obligated to provide severance pay even if you do not have a written agreement? Did you know that your severance agreement may not protect you as much as you think? Or that it may not be enforceable? Is your severance arrangement subject to ERISA laws?
Learn what you need to know to derive maximum benefit from and avoid the pitfalls associated with severance arrangements
Janette Levey Frisch, founder of The EmpLAWyerologist Firm, is an employment/HR attorney with over 20 year's legal experience. Ms. Frisch is a legal wellness professional for employment practices and workforce challenges. She works with employers to craft solid employment practices wellness plans tailored to address an organization’s needs and concerns. As a consultant, she offers legal services on virtually all federal and NJ and NY state employment law issues.
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