Severance Agreement Preparation for Florida Employers

When an employee leaves your company — whether through termination, layoff, or mutual agreement — the way you handle their departure can have long-lasting consequences for your business. A severance agreement is more than just a paycheck on the way out — it’s a legal contract that protects your interests, minimizes legal exposure, and can even help maintain your company’s reputation.

At Kaplan Employment Law, we prepare severance agreements that balance compliance, fairness, and risk management. We ensure the agreement meets all legal requirements, is enforceable, and reflects your company’s values — including your commitment to diversity, inclusion, and respectful treatment of employees.

Why Severance Agreements Matter

In Florida, employers are not generally required to provide severance pay. But offering a severance package — with a properly drafted release of claims — can:

• Prevent costly litigation by resolving potential disputes before they begin.
• Protect confidential information and company trade secrets.
• Maintain a positive employer brand by showing employees they are treated with respect, even when leaving.
• Ensure compliance with federal and state employment laws.

A severance agreement is also a chance to reaffirm your commitment to a fair and inclusive workplace, which can be important for employee morale and public perception.

Key Components of a Legally Sound Severance Agreement

We tailor agreements to the circumstances of each separation, but common provisions include:

• Release of Claims: Waives the departing employee’s right to sue for discrimination, harassment, retaliation, wage disputes, or other claims.
• Confidentiality: Prevents disclosure of trade secrets, proprietary information, and sometimes the terms of the agreement itself.
• Non-Disparagement: Protects your company’s reputation by limiting harmful statements from the departing employee.
• Return of Company Property: Ensures all equipment, documents, and access credentials are returned.
• Final Pay and Benefits: Outlines severance pay, unused PTO payout, continuation of health benefits, and any COBRA rights.
• Compliance with OWBPA: If the employee is over 40, the agreement must comply with the Older Workers Benefit Protection Act, including specific timeframes and disclosures.

Why Compliance and Communication Are Crucial

The EEOC and Florida Commission on Human Relations closely scrutinize severance agreements — especially those involving discrimination or retaliation claims. An agreement that fails to meet legal requirements can be invalidated, leaving your business exposed.

Clear communication is equally important. Employees should understand the terms of the agreement and feel the process was fair. This not only helps avoid disputes but also reinforces your company’s commitment to treating all employees — regardless of background — with dignity and respect.

The Role of Diversity and Policy Publication in Severance Planning

When severance decisions are made within a framework of well-published, consistently applied policies, it’s easier to defend against allegations of bias. For example:

• A documented layoff policy that applies equally to all employees avoids the perception of discrimination.
• A handbook that outlines performance standards supports terminations based on legitimate business reasons.
• Maintaining diversity and anti-harassment training records shows your company values inclusion and fairness.

In short: transparency and consistency reduce legal risk.

Our Process for Preparing Severance Agreements

1. Situation Review: Understand the circumstances of the separation and potential risks.
2. Drafting the Agreement: Tailor terms to your legal needs and company culture.
3. Legal Compliance Check: Ensure all federal, state, and local laws are satisfied.
4. Presentation to Employee: Provide the agreement in a professional, respectful manner.
5. Finalization: Secure signed acknowledgment and release of claims.