Being let go is hard enough. Being handed a severance agreement with a short deadline and a request to sign away your rights makes it harder. Before you sign, you should understand exactly what you are agreeing to, what you are giving up, and whether the offer reflects what your situation is actually worth.
Kaplan Employment Law reviews and negotiates severance agreements for employees throughout Coral Springs and Broward County, including employees affected by medical practice sales and consolidations, retail closures, corporate downsizing, and small-business restructurings. Have your agreement reviewed before the deadline.
What Is a Severance Agreement?
A severance agreement is a contract between you and your former employer. The employer offers something of value, usually a payment and sometimes continued health coverage or other benefits, and in exchange you agree to certain terms. The most important of those terms is almost always a release: your promise not to sue the employer for anything that happened during your employment or your termination.
Because it is a contract, the details matter. Two agreements that offer the same dollar amount can mean very different things depending on what you release, what you promise going forward, and when and how you are paid.
Is My Employer Required to Offer Severance in Florida?
No Florida or federal law requires a private employer to offer severance pay. Severance is generally voluntary. There are exceptions: an employment contract, an offer letter, a written severance policy, or a benefit plan may promise severance under certain conditions, and if it does, the employer may be obligated to follow it. If you have any of those documents, they should be reviewed alongside the agreement.
Separately, if a large employer conducts a mass layoff or closes a location, the federal WARN Act may require advance notice, which can affect what you are owed.
Severance in Coral Springs Workplaces
Severance situations in Coral Springs often have features worth noticing. When a medical or dental practice is sold to a larger group, employees may be terminated by the old practice and offered jobs by the new owner, and the release may be drafted to cover both. Agreements from these transitions often include non-solicitation terms covering patients or clients. Retail and corporate layoffs frequently use standardized group agreements with age-related disclosures that employees 40 and older should check. And small-business severance is often informal, with verbal promises that should be put in writing before you sign anything. Each of these affects how an agreement should be read and whether the offer is fair.
What You Give Up When You Sign: The Release
Most severance agreements include a general release of claims. That usually covers claims for discrimination, harassment, retaliation, wrongful termination, breach of contract, and more, whether or not you know about them when you sign. If you have a potential claim, signing the release typically ends it in exchange for the severance amount.
Some rights cannot be released through a private agreement. You generally cannot give up vested retirement benefits, and you cannot be prevented from filing a charge with the EEOC or participating in an agency investigation, although the agreement may waive your right to recover money from that charge. Unpaid wage claims under the Fair Labor Standards Act also generally cannot be waived in a private agreement without court or Department of Labor approval.
Common Terms to Review Carefully
- Scope of the release: what claims you are giving up, and whether the release is mutual.
- Confidentiality: whether you must keep the agreement, its amount, or the circumstances of your departure secret.
- Non-disparagement: what you may and may not say about the employer, and whether the employer makes the same promise about you.
- Non-compete and non-solicitation terms: whether the agreement adds or extends restrictions on future work or on contacting clients and coworkers.
- No-rehire and cooperation clauses: promises not to reapply, or to assist the employer in future litigation.
- Payment terms: the amount, whether it is paid in a lump sum or installments, when it is paid, and how it is taxed.
- Health insurance: whether the employer will pay toward COBRA continuation coverage, and for how long.
- References: whether the employer will provide a neutral reference or confirm only dates and title.
- Unpaid compensation: whether earned wages, commissions, bonuses, tips, or accrued paid time off are being treated as part of the severance when they may already be owed.
Special Rules for Employees 40 and Older
If you are 40 or older, the Older Workers Benefit Protection Act adds protections before you can validly waive an age discrimination claim. The agreement must be written in plain language, specifically refer to rights under the Age Discrimination in Employment Act, and advise you in writing to consult an attorney. You must be given at least 21 days to consider an individual offer, or 45 days if the offer is part of a group termination, and at least seven days after signing to revoke. In a group termination, the employer must also provide information about the job titles and ages of the employees selected and not selected. If those requirements are missing, the age-claim waiver may not be valid.
When You May Have Room to Negotiate
A severance offer is a starting point, not a final word, but negotiating leverage comes from real facts, not hope. Leverage is usually strongest when:
- You have a potential claim, such as a firing that followed protected activity, a discriminatory pattern, or unpaid wages or tips.
- Earned compensation, such as commissions, bonuses, or accrued paid time off, has not been paid.
- The employer’s documents, such as a contract or a severance policy, promise more than what is offered.
- The terms ask for more than usual, such as a new non-compete or a broad confidentiality clause.
When none of those apply, an agreement may still be worth signing after a review confirms you understand it. Part of an honest review is telling you when the offer is reasonable.
Severance and Reemployment Assistance
Severance payments and the terms of your agreement can affect when and whether you collect Florida reemployment assistance. Some agreements also address whether the employer will contest an unemployment claim. Ask about this before you sign rather than after.
What a Severance Review Looks Like
A useful review goes beyond the agreement itself. We read it alongside your offer letter, any employment contract, the employee handbook or severance policy, and your pay records. We identify exactly which claims and rights the release covers, flag terms that restrict your future work or speech, check the age-waiver requirements if you are 40 or older, and confirm whether compensation you already earned is being repackaged as severance. Then we talk through the facts of your termination and give you a candid assessment: whether the offer is reasonable as written, whether there is a realistic basis to ask for more, and what the risks are either way.
Mistakes to Avoid
- Signing on the spot, or before you have read every page
- Letting the consideration or revocation deadline pass without a decision
- Assuming the offer cannot be changed
- Posting about your employer online while an agreement with a non-disparagement clause is pending
- Taking company documents or data when you leave
- Failing to keep a copy of the agreement and every related email
FAQs About Severance Agreements in Coral Springs
How long do I have to decide?
It depends on the agreement and your age. Employees 40 and older generally must receive at least 21 days, or 45 days in a group termination. Others get whatever deadline the employer sets, which is often short.
Can I negotiate a severance agreement?
Often, yes, particularly when you have a potential legal claim or unpaid compensation. The strength of a negotiation depends on the facts.
If I sign, can I still sue my employer?
Usually not for the claims you released. That is why the agreement should be reviewed before you sign.
Can I still file for unemployment if I sign?
Signing a severance agreement does not automatically prevent you from applying, but the payment and terms may affect your claim. Ask before you sign.
Does a severance agreement cover my unpaid tips or overtime?
Wage claims under the FLSA generally cannot be waived in a private agreement without court or Department of Labor approval. If you are owed wages, that should be addressed directly. See our pages on unpaid overtime and stolen tips.
What if I think I was fired illegally?
Then the release may be giving up a claim worth more than the severance. Have the agreement reviewed alongside the facts of your firing. Learn more about wrongful termination and retaliation in Coral Springs.
Have Your Coral Springs Severance Agreement Reviewed
Severance deadlines move quickly. Before you sign away your rights, understand exactly what you are agreeing to. Start your free case review.
