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Process
Each listed firm's assessment begins with a confidential case review where we analyze your employment contract, company policies, and the circumstances of your termination. We evaluate key factors such as your length of service, salary, bonus history, and the reason for separation to establish a baseline for negotiation. Leveraging our understanding of state-specific laws and federal statutes like the Older Workers Benefit Protection Act (OWBPA), which mandates a minimum 21-day review period for group layoffs involving employees over 40, we build a strategic claim. This process includes a detailed review of any non-compete, non-disparagement, or release clauses. We then provide a clear, written evaluation of your potential entitlement, often identifying leverage points that can increase a standard offer by 20-50% or more, before guiding you through the next steps outlined in our guide on how severance pay is calculated.
Local Considerations — USA
Severance practices and legal leverage vary significantly across the United States. In major tech hubs like San Francisco and New York, where employment is often at-will and high salaries are common, companies frequently use robust severance packages to secure releases from potential claims. In contrast, within regulated industries or in states with stronger worker protection histories, the calculus changes. Our national practice is tailored to these regional legal landscapes. For instance, assessing a case in Boston's biotech sector involves different contractual norms and potential claims than one in Texas's energy sector. We adapt our evaluation strategy to the specific employment laws and common practices of your location, ensuring our advice is precisely calibrated, whether you are in our primary hub or seeking guidance in another major metropolitan area.
At a Glance
| Parameter | Reference Value |
|---|---|
| Standard Review Period for Agreement | 21-45 days |
| Common Severance Formula (Weeks of Pay) | 1-2 weeks per year of service |
| Key Factor for Enhancement | Age (if 40+), Layoff Scope, Potential Claims |
| Typical Project Timeline | 4-8 weeks |
Standards & Compliance
- Worker Adjustment and Retraining Notification (WARN) Act
- Older Workers Benefit Protection Act (OWBPA)
- State-Specific Wage Payment Laws
- Employee Retirement Income Security Act (ERISA) for benefits continuation
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Frequently Asked Questions
How is severance pay typically calculated?
There is no single federal formula. Calculation often depends on company policy or negotiation. Common benchmarks include one to two weeks of pay per year of service, but this can be significantly increased based on factors like age, the reason for termination, the existence of an employment contract, or potential legal claims against the employer.
What should I do immediately after receiving a severance offer?
Do not sign anything immediately. Carefully note the deadline for response. Review the document for key clauses like a release of claims, non-compete agreements, and confidentiality terms. Then, consult with an employment attorney for a thorough review. An attorney can assess if the offer is fair and negotiate for improvements, often securing additional compensation or better terms.
Am I entitled to severance if I am fired for cause?
Typically, no. Severance is most commonly offered in situations of layoffs, position elimination, or mutual separation agreements. If terminated for documented misconduct or performance issues as defined by company policy, employers are generally not obligated to offer severance. However, the definition of 'cause' is often contestable, and legal review is crucial to determine if you have grounds to challenge the termination and seek a package.
How much does a severance review cost?
The cost for a severance review and negotiation depends on the complexity of your case, the length of the agreement, and the required negotiation scope. Many attorneys offer an initial consultation for a flat fee, with subsequent representation on an hourly or contingency basis. It is best to request a specific fee agreement after the attorney reviews your documents and discusses your objectives.