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12th Sep 2018

Q:  After four years at work, I got a notice.  They said, “We regret that we are not continuing with the line you handle…” I have asked for severance. What are my rights?

– S.J., Lakewood

A: There is no law in California that requires an employer to provide severance pay. An exception is if you have a previous agreement to receive severance, such as a provision in your pre-employment contract, or if there is a union agreement that mandates it. If your employer is asking for a release of various claims, however, it would not be at all unusual for there to be a level of consideration paid to support the releases. If you are offered a severance agreement, go over the language carefully to make sure you understand it, and that you are comfortable with terms and conditions. Consult counsel if need be, either to evaluate any proposed severance contract, or to push for one if you believe the circumstances call for it.

Q:  I am leaving a company,  but the parting is not amicable.  They told me I will get my final pay if I sign an agreement that has a release of claims, but otherwise not.  Do I have to sign?

– N.G., Hawthorne

A: You do not have to sign.  In fact, it is not permissible to require an employee to sign a release agreement as a condition to getting wages owed or soon to be owed. Your final pay check and money due are to be paid by law no more than 72 hours from termination. If not paid on time, you may well have a wage claim, and penalties may be assessed against the employer. You can read on line about how to make a wage claim at the web site of the California Department of Industrial Relations (just type “wage claim” in the search box).

Q:  My company and I are parting ways.  It has been a bumpy ride for months.  They provided me with a “separation agreement” but I am concerned about all the releases.  Are there some items I am not required to give up?

– T.S., Redondo Beach

A:  There are a number of legal rights that by law cannot be waived.

  • Your right to report crimes, and any provision that requires you to act illegally (eg., perjure yourself to protect the employer);
  • an impermissible future restriction on your working for someone else  (ie, the proverbial non-competition clause which is quite disfavored in California); waivers so broad and ambiguous they will preclude you from your right to seek employment;
  • your right to make claim for violation of California’s wage and hour laws (such as a claim for overtime pay); your right to what you already are owed;
  • if you are 40 years of age or older, there are prohibitions about requiring you to waive claims based on age discrimination, unless you have at least 45 days to evaluate the waiver, and 7 days to revoke it.

Ron Sokol has been a practicing attorney for over 35 years, and has also served many times as a judge pro tem, mediator, and arbitrator.  It is important to keep in mind that this column presents a summary of the law, and is not to be treated or considered legal advice, let alone a substitute for actual consultation with a qualified professional.

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