Layoffs and Severance Agreements

Employers anticipating layoffs or “right-sizing” a business can mitigate risk to the business by obtaining legal advice on employment law compliance. We advise on layoff process, reducing discrimination claim risk, severance pay and severance agreements (including compliance with the Older Workers Benefit Protection Act (OWBPA)), and compliance with the Worker Adjustment and Retraining Notification Act (WARN). We also assist in evaluating and defending legal claims before a lawsuit is filed, in agency actions (for example, before the EEOC or the TWC), or in litigation. Employees often need help in advance of and during layoffs. Generally, a business is not required to offer employee severance. When it does, it typically will require the employee to sign a release of claims in exchange for the severance. To make an informed decision before signing an agreement, an employee should understand what is being offered, what is being released, and what obligations the employee and employer each will have after signing. We advise employees considering severance agreements. We often assist in negotiating severance and severance agreements.