Severance Agreement Conditions and Rights after Age 40

Employment Law — Attorney Writing on A Paper in Birmingham, AL

Alabama is an at-will employment state, so your employer is not required, by law, to offer you a severance agreement. Your employer may choose to offer you one, but the language in the agreement may be complicated and more beneficial to them rather than to you.

If you are not careful, then you may sign away important rights, especially if you are over 40, which grants you additional rights. Here is more information about common conditions usually found in severance agreements and how you can protect your rights as an older worker.

Conditions Common to Severance Agreements

Generally, severance agreements have a long list of conditions that you must comply with before you can receive severance pay, or that require you to pay severance back when those conditions are not met. Some common conditions include the following:

You Agree Not to Sue

If you have read and understood the severance agreement, then this clause protects your employer in case you decide to file a lawsuit against them later on. However, you may still be able to file a Charge of Discrimination with the E.E.O.C. if you feel that your termination was based on your status in a protected class. Watch out! Even if you are permitted to file a Charge of Discrimination, you may have waived your right to recovery monetary damages!

You Agree to Not Work for a Competitor

Often, this type of clause is meant to protect trade secrets that you could use against them. It also applies to working with vendors or other companies that do business with your employer. Often, these agreements have a time limit such as not allowing you to work for these companies for a year.

You Agree to Not Disparage the Company

No matter how bad your work conditions were, if you sign an agreement with a non-disparagement clause, then you cannot ever say anything negative about your employer on any official record.

You Agree Not to Discuss Your Work

Some severance agreements may mention that you cannot discuss any of the details of your job. This is especially common if you work with sensitive personal or proprietary information.

Protections for Employees Over 40

If you are over 40, then you have special protections under the Age Discrimination in Employment Act. Your severance agreement must specifically spell out these rights in order to be valid. Here are examples of the minimum information that your employer must provide in the agreement.

You Have the Right to an Attorney

The agreement must have wording that advises you to seek attorney's counsel, though whether you do so is up to you.

You Must Be Informed of the ADEA

The waiver must specifically mention your rights under the ADEA and spell out the act in its full name.

Your Agreement Must Be Understandable

The severance agreement must be written in plain, understandable language that an average person of your education level can understand. It should not be written in complex, legally technical language unless you have a law background. Failure to use plain language may make the agreement invalid.

You Are Allowed Time to Consider

Unlike those under 40, you are allowed, by law, a minimum of 21 days to examine the agreement. If more than one person is being terminated, then you may be allowed 45 days. If your employer says otherwise, then remind them of the requirements under the ADEA.

You Are Allowed Time to Revoke the Agreement

As a person over 40, you have up to seven days to revoke the agreement after you have signed it. Your employer cannot force you to give up this right and, if there is language in the agreement that states otherwise, then that agreement is invalid.

Severance agreements, in general, are tricky, but if you are over 40, then you are entitled to certain provisions to ensure that you know what you are signing. You should use the allotted grace period to consult an attorney before signing any agreement to make sure you are not signing away important rights.

Allen D. Arnold Attorney at Law will look over your severance agreement to ensure that your employer is following the law and point out any other important clauses. Contact them today for a consultation appointment.

Alabama Rules of Professional Conduct Notice: No Representation is made that the quality of legal services offered is greater than that of other lawyers. The information contained on this website is not a substitute for legal advice, and reading it does not create an attorney-client relationship.

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