Severance Agreement Dispute Lawyers in Los Angeles

When an Employer Violates a Severance Agreement

A signed severance agreement is a contract, and both sides have to keep their promises. If your employer stops paying, cuts off health coverage it agreed to continue, gives a bad reference after promising a neutral one, or breaks a confidentiality promise, that’s a severance agreement violation. Our severance agreement lawyers in Los Angeles can review whether you have a claim separate from the claims you released under the agreement.

California doesn’t generally require an employer to provide severance solely because employment ends. Once an employer makes enforceable promises in a signed agreement, however, failure to perform those promises may support a contract claim. The available response depends on the agreement language, the nature of the breach, and any dispute-resolution provision.

Any wages you’d already earned before signing, including your final paycheck and accrued unused vacation pay, must be paid independently of the severance agreement. If your employer held that money back to pressure you into signing, that may be a separate wage violation rather than part of the severance payment.

When a Signed Agreement May Not Hold Up

Signing an agreement doesn’t always end the matter. Several issues may affect whether your original claim remains available:

• Noncompete clauses. California generally doesn’t allow employers to restrain former employees from engaging in a lawful profession, trade, or business, although statutory exceptions may apply.
• Silence about harassment or discrimination. California law generally doesn’t allow a separation agreement to prohibit disclosure of information about unlawful acts in the workplace, even when the agreement includes a lawful general release.
• Nothing of real value in exchange. A release generally requires something beyond what you were already owed. If it doesn’t, the release may not be enforceable.
• Being pressured or kept in the dark. Fraud, undue influence, material omissions, misleading statements, or missing legally required information may affect whether a waiver is enforceable.

These issues don’t automatically invalidate every part of an agreement. They may affect whether a release covers connected discrimination, retaliation, wage, or other employment claims, so the language and circumstances surrounding the signature both matter.

Age Discrimination Waivers for Employees 40 or Older

Federal law gives extra protection when a severance agreement gives up your right to bring an age discrimination claim. The Older Workers Benefit Protection Act sets requirements for a valid waiver of federal age-discrimination rights.

The waiver generally must be clear and written, specifically refer to federal age-discrimination rights, advise you to consult an attorney, and provide something of value beyond what you were already entitled to receive. An individual termination agreement generally provides at least 21 days to consider the offer. A group termination or exit incentive program generally provides at least 45 days, and both generally include 7 days after signing to revoke acceptance.

If required protections were omitted, the agreement may not have validly waived your federal age-discrimination claim. These rules apply specifically to that waiver and don’t automatically determine whether every other released claim remains available.

Options After a Severance Agreement Dispute

Possible responses include a letter addressing the employer’s broken promise, a wage claim with the Labor Commissioner if pay was withheld, or a discrimination or retaliation complaint with the state if the underlying claim remains available. Court or arbitration may be appropriate if the dispute can’t be resolved another way.

The appropriate forum depends on the agreement’s dispute-resolution language, the type of claim, applicable deadlines, and the facts surrounding the separation. Reviewing those details early can clarify whether the dispute involves contract enforcement, unpaid wages, an underlying employment claim, or more than one issue.

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