Employees who have been let go in California may receive severance packages from their employers that may consist of final wages and benefits. While companies are not obligated to provide severance, you do have the right to negotiate benefits if your company does offer you a severance package. Additionally, if you were wrongfully terminated, you may also have the right to take legal action. To navigate issues or seek guidance, consult The Armstrong Law Firm for legal advice.
How Severance Works in California
According to California’s Department of Industrial Relations Division of Labor Standards Enforcement, employers in California do not legally have to provide severance pay. Company policy or contracts dictate whether or not a company will offer severance. If such a policy is in place, then employers must offer you severance when they let you go. However, companies are legally required to pay you all final wages earned, regardless of whether or not they issue severance payments.
What Severance Packages Include and How to Negotiate the Terms
If you receive a severance package, it may include a financial sum that covers a portion of future wages you would have earned, unused PTO time, COBRA health coverage, and certain benefits that may include stock options, career counseling, and references. A severance package will also contain legal documents that formally accept the severance terms and release the company from any legal risk. Some companies may also include non-compete, non-disparagement, and/or non-disclosure agreements within the severance packages in order to create a clean parting.
When reviewing your executive severance package, consider what terms you may want to professionally negotiate. Increased compensation, extended health coverage from your employer, and other benefits can help offset the sudden impact of this employment change. It can also provide you with an extra cushion. However, be sure to read the terms and fine print carefully to ensure that you are being treated fairly and will not have any surprises once you accept the severance package.
Understanding Wrongful Termination and Severance Packages
If you have been let go and are unclear about the reason or have been subjected to unfair treatment, then you may have been wrongfully terminated. Even companies that have at-will employees are expected to follow state and federal rules about firing employees. Some common signs your executive termination may be wrongful may include:
- Discrimination
- Retaliation
- Employer breach of contract
- Termination after taking legally protected leave
- Inconsistent or insufficient reasons
Employers are not allowed to fire employees based on these reasons. However, companies may provide other reasons to cover the fact that they made their decision based on one of the elements above. If you have been wrongfully terminated, you can file a lawsuit to recover damages and hold them accountable. These cases can be complicated, so be sure to consult a lawyer first and have them handle your case.
Additionally, if you have grounds for a wrongful termination suit, do not accept severance pay. Once you accept the terms of a severance package, you lose all legal right to take action against your employer.
Consult The Armstrong Law Firm Today
Consult The Armstrong Law Firm to ensure that you receive a fair severance package, get help with negotiations, or have legal representation for wrongful termination. We are ready to answer your questions and fight for you. Schedule a consultation today.