Severance Pay Lawyer in Los Angeles

Upon termination of employment, an employee may be offered severance pay. An employer might offer severance pay as compensation for an employee’s contributions to the company. However, it is often offered as a way for the employer to protect themselves against a former employee who might engage in certain actions that might harm the company. Severance pay is often granted as part of a separation agreement which is a legally binding contract between the employee and employer.

Most severance agreements will include a general release of claims, confidentiality agreement, and non-disparagement agreement. In exchange for compensation, employees are often asked to waive certain legal rights. Before signing or accepting a severance agreement, it’s extremely important that you fully understand the terms of the agreement.

Strategic Severance Negotiations

In California, “at-will” employment means you can be let go at any time, but it doesn’t mean you have to accept the first offer on the table. A severance agreement is a binding contract. When you sign, you are often waiving claims for wrongful termination, discrimination, or unpaid wages.

How Legal Representation Changes the Game

Most employees look only at the dollar amount. An experienced attorney looks at the leverage:

• Audit for Claims: We determine if you have a viable claim for wrongful termination or harassment. If you do, that is your primary “currency” to negotiate a much higher payout.

• The “5-Day Rule”: Under California Government Code §12964.5, your employer must give you at least five days to consult an attorney. We use this window to pause the clock and strategize.

• Tax Optimization: We can help structure payments (e.g., emotional distress vs. wages) to potentially reduce the tax burden on your settlement.

What’s Really in Your Agreement?

While every contract differs, most contain these “Big Three” clauses that require careful scrutiny:

1. General Release of Claims: This is the heart of the document. You are essentially selling your right to sue for anything that happened during your employment.

2. Confidentiality: This prevents you from telling anyone (sometimes even family) the amount you received. We can often negotiate exceptions for your spouse, attorney, or tax advisor.

3. Non-Disparagement: This stops you from saying anything negative about the company. We fight to make this mutual, ensuring the company also cannot “blackball” you in the industry.

Calculating Your Fair Share

There is no “standard” amount, but California industry norms typically fall within these ranges:

The Basic Formula

Most California firms offer 1 to 3 weeks of pay for every year of service.

Beyond the Base Pay

We also negotiate for:

• COBRA Premiums: Having the employer pay the full cost of your health insurance for a set period.

• Vesting Acceleration: Negotiating for your stock options or RSUs to vest as if you had stayed a few months longer.

• Unused Vacation: In California, earned vacation must be paid out. It cannot be used as a “bonus” within the severance; it is already your money.

Why Choose Mesriani Law Group?

Negotiating against a corporate HR department and their legal team can be intimidating. We level the playing field.

• 30+ Years of Experience: Since 1996, Rodney Mesriani and his team have negotiated packages for everyone from hourly workers to C-suite executives.

• No Win, No Fee: We align our success with yours. If we don’t recover more for you, you don’t owe us a dime.

• Multilingual Expertise: We bridge the communication gap for Farsi, Spanish, and English speakers to ensure no detail is lost in translation.

• Strategic Leverage: We don’t just ask for more money; we show your employer the legal risks they face if they don’t offer a fair settlement.