Severance Agreements: What to Watch For Before Signing
Many construction workers in California are asked to sign severance agreements when their employment ends. These documents can seem routine, but it’s important to understand what you’re agreeing to before you put pen to paper. A severance agreement can affect your rights, your future employment, and how much money you receive when you leave a job. Here’s what you should look out for before signing.
What Is a Severance Agreement?
A severance agreement is a contract that outlines the terms under which an employee leaves a company. It often includes a payment from the employer and usually asks the worker to give up certain legal rights. While these agreements can benefit both the employee and employer, they can also contain hidden terms that may not be in your best interest.
Key Terms to Understand
- Waiver of Legal Claims: Many severance agreements in California require employees to waive their right to sue their employer. That means if you believe you were wrongfully terminated, discriminated against, or harassed, signing the agreement could prevent you from taking legal action later.
- Non-Disparagement Clause: Some agreements include a clause that prevents you from speaking negatively about your former employer. This can limit what you say to future employers, friends, or on social media.
- Confidentiality Clause: You may be asked not to share details about your severance package or anything you learned while working for the company. Violating this could lead to legal action against you.
- Scope of Release: Make sure the agreement doesn’t force you to give up rights that go beyond your employment – like future unemployment benefits or workers’ compensation claims.
How California Law Protects Construction Workers
California law provides strong protections for workers, including those in the construction industry. For example, severance agreements cannot prevent you from reporting unlawful conduct to government agencies, such as violations of labor laws or safety regulations. Also, if you are over 40 years old, federal and California law require that you be given at least 21 days to consider the agreement and 7 days to cancel after signing.
Additionally, if you belong to a union, you may have extra protections. Sometimes, your union representative can help review the agreement or negotiate better terms. Before signing anything, it’s a good idea to understand all your rights and how the agreement may affect your ability to work in the future or receive benefits you are owed.
Why You Should Speak to a Professional
Signing a severance agreement without legal advice can be risky—especially if you’re being let go under difficult or confusing circumstances. A construction worker may not know how certain clauses can affect their legal rights, retirement benefits, or job opportunities. This is why it is always recommended to speak with a professional who understands California labor law before making a final decision.
If you’re unsure about the terms or think something isn’t fair, don’t sign just yet. Construction workers in California deserve to be treated fairly and lawfully when leaving a job.
If you’re facing issues with a severance agreement or just want to make sure your rights are protected, call Jonny Law at 800-566-4868 for a free and confidential consultation. Your future matters—make sure you have someone on your side before you sign.