The offer of a severance agreement often comes at a moment of significant professional upheaval. For many high performers like “Hannah,” the initial reaction is shock and a desire for clarity. Her simple question, “Can you review a severance agreement for me?” highlights a critical need for understanding these complex documents and the circumstances surrounding their offer. Here’s why Hannah benefited from having an employment attorney review her severance agreement and employment experience.
Why Employers Offer Severance Agreements
It’s estimated that a significant percentage of employees in larger organizations will be offered a severance package at some point in their careers, particularly during restructurings or reductions in force. While the terms can vary widely based on factors like tenure, position, and company policy, the fundamental purpose of a severance agreement is typically to provide departing employees with financial compensation and benefits in exchange for releasing the employer from potential legal claims.
In Hannah’s case, it became clear that her employer was concerned about a conflict between protected classes of employees–a conflict managers and executives handled poorly because they prioritized one class (people of color) over another (Jewish people). The confusion grew out of her employer’s commitment to diversity, equity, and inclusion (DEI) efforts during the height of the Black Lives Matter protests. Although well-intentioned, the employer’s performative DEI efforts proved to be poorly-researched, unsupported by data in Hannah’s workplace, and ultimately led to multiple cases of discrimination.
Why It’s About More Than Fast Cash for Employees
A key component of almost every severance agreement is a waiver of the employee’s right to sue the employer. This is precisely why employers offer these packages. However, understanding the implications of this waiver is paramount. When we review your severance agreement, we also discuss the conditions of your employment:
- Were there any potential claims of discrimination or other harassment?
- Was there an employment contract, and were any terms breached?
- Will the severance agreement help you meet your needs and goals?
Without a thorough review, you might be unknowingly giving up rights you didn’t even realize you had.
Protected Classes of Employees in Conflict
Hannah endured a hostile work environment following the October 7, 2023 escalation in Gaza. This underscores a concerning trend: the rise of conflicts between protected classes of employees within the workplace. While comprehensive statistics specifically on lawsuits arising from these inter-group conflicts are still coming together, data on discrimination and harassment claims filed with the Equal Employment Opportunity Commission (EEOC) consistently show these issues remain significant. In 2023 alone, the EEOC received tens of thousands of charges alleging discrimination based on race, religion, national origin, and other protected characteristics.
The reality is that global events and societal tensions can and do spill over into the workplace. When not managed effectively, these tensions can create hostile environments, leading to:
- Decreased productivity
- Damaged morale
- Occasional legal action
Employers who fail to proactively address these issues risk significant financial and reputation damage. Legal settlements and judgments in discrimination and harassment cases can range from tens of thousands to millions of dollars, not to mention the associated legal fees and negative publicity. We work with both employers and employees to create sustainable employment partnerships, understanding that court takes substantial time, money, and energy from everyone involved. I learned that firsthand in my own employment lawsuit.
The Need to Address Systemic Issues
In Hannah’s case, we were able to negotiate a better severance package, but it wasn’t a true or complete resolution. The underlying issues within the organization remained. I know this because one of her colleagues contacted me with similar issues several months later.
This highlights a crucial point: severance agreements are often a reactive measure. A truly holistic approach involves proactively fostering an inclusive and respectful workplace where conflicts are addressed early and effectively.
Resources for Employees and Employers
If you’ve been offered a severance agreement, seeking guidance from an experienced employment attorney ris a critical first step. They can help you understand the terms, identify any potential red flags, and ensure your rights are protected.
For employers, creating and maintaining a fair and inclusive workplace requires ongoing effort and training. Ignoring potential conflicts or hoping they will resolve themselves is a risky strategy. Investing in DEI training, conflict resolution skills for managers, fair and impartial investigations, and clear reporting mechanisms is essential.
How Third Ear Conflict Resolution Can Help
- For Individuals: If you’re facing a severance agreement, don’t navigate it alone. Contact us for a confidential review and guidance.
- For Employers: We offer training and consulting services to help you build a more inclusive and conflict-resilient workplace. Join our upcoming Third Ear Thursday webinar for practical strategies. We’re also partnering with Spectra Diversity and The Cavu Group next month to bring you even more in-depth resources.
- For Legal Professionals: Enhance your skills in this critical area with my on-demand Lawline course, and keep an eye out for two new courses in development.
Ultimately, whether you’re an employee facing a career transition or an employer striving to create a positive work environment, understanding your rights and responsibilities is paramount. Let’s move beyond reactive measures and focus on building workplaces where everyone feels valued and respected.