Are you planning to leave your job and require a severance package? Your employment contract is crucial to your career and defines your relationship with your employer. You need to know why you should have an attorney review your severance agreement in Nevada.
It might seem unnecessary, but understanding the importance of legal review before signing your severance agreement can prevent costly mistakes. Here’s what you need to know.
10 Reasons Why You Should Have an Attorney Review Your Severance Agreement in Nevada
Severance agreements are more than just paperwork. They are legally binding contracts that affect your severance pay, benefits, and future employment.
Employers draft these agreements to protect their interests, not necessarily yours. Before signing, it’s crucial to consult an experienced employment lawyer in Nevada. Here’s why:
1. Protect Your Rights Under Nevada Law
Nevada law does not mandate severance pay, but many employers offer severance packages to limit their legal risks. A severance agreement might include terms that waive your rights to sue, even if you were wrongfully terminated.
Without proper legal counsel, you could unknowingly give up your ability to seek legal recourse. An attorney will carefully review your severance agreement to ensure you receive what you rightfully deserve and that your employment rights are fully protected.
2. Understand Your Severance Pay and Benefits
Severance packages can include lump sum payments, continued salary for a set period, extended health benefits, stock options, and more. However, employers structure these agreements to their advantage. Without an attorney review, you could miss out on benefits or fail to negotiate better terms.
However, employers draft these agreements to protect their interests—not necessarily yours. You need to know the right questions to ask a premises liability lawyer before hiring them so you have the correct professional on your additional months of health coverage, extended pay periods, or an increase in severance pay.
Maximizing your severance benefits is key to financial stability as you transition into a new job.
3. Identify Wrongful Termination Claims
If you were wrongfully terminated, you may have legal claims under Nevada law. Employers often offer severance to avoid lawsuits for racial discrimination, retaliation, age discrimination, or contract violations.
A legal team can evaluate your case, determine if you have a valid wrongful termination claim, and use it as leverage to negotiate a better severance offer—or pursue legal action if necessary.
For instance, if you were terminated due to discrimination based on age, gender, or disability, you could be entitled to compensation beyond what the employer initially offered.
4. Negotiate Non-Compete and Non-Solicitation Clauses
Many Nevada severance agreements include restrictive clauses that limit your ability to find a new job. A non-compete clause could prevent you from working in your field for months or even years. Non-solicitation clauses can stop you from reaching out to former clients or coworkers.
These restrictions can severely impact your career and financial stability. An employment lawyer can negotiate to limit the impact of these clauses, ensuring you maintain the freedom to seek new employment opportunities.
5. Avoid Hidden Tax Implications
Severance pay, especially lump sum payments, can create unexpected tax burdens. If not properly structured, you might be pushed into a higher tax bracket, leading to a significantly reduced payout.
A Nevada employment attorney can guide you on structuring your severance payout in a way that minimizes tax liability and maximizes financial security.
For example, they may recommend spreading payments over multiple years to reduce tax implications and keep you eligible for certain deductions.
6. Secure Your Unemployment Benefits
Nevada has strict rules about how severance pay affects unemployment insurance. Depending on how your severance agreement is structured, you may lose your ability to claim unemployment benefits. In some cases, severance agreements can disqualify employees from receiving unemployment benefits altogether.
An attorney will review your agreement to ensure you remain eligible for unemployment benefits if needed and negotiate provisions that won’t jeopardize your financial stability while seeking a new job.
7. Ensure Compliance with Federal and Nevada Laws
Severance agreements must comply with Nevada employment laws and federal laws such as the Age Discrimination in Employment Act (ADEA), Americans with Disabilities Act (ADA), and the Fair Labor Standards Act (FLSA).
Some agreements require a mandatory review period under the Older Workers Benefit Protection Act (OWBPA). If your employer violates any of these laws, an attorney can identify the issue and advocate for your rights.
Having a legal expert ensures your agreement meets all legal requirements and protects you from signing away critical rights unknowingly.
8. Avoid Unfair Non-Disparagement Clauses
Non-disparagement clauses can restrict your ability to discuss your former employer—even in cases of mistreatment. Violating this clause may lead to legal consequences, including the loss of severance pay.
Employers often draft these clauses in a way that favors them while leaving employees at risk. An attorney can help negotiate fairer terms that protect your ability to discuss your experiences without fear of legal repercussions, allowing you to move forward without unnecessary restrictions.
9. Leverage Company Resources for a Better Offer
Your employer has legal counsel—so should you. Companies design severance agreements to benefit them, often at your expense. By hiring an experienced attorney, you level the playing field and ensure you receive the compensation and benefits you deserve.
Employers may have financial flexibility to offer better severance terms, but they won’t reveal this unless an attorney pushes for better compensation. A lawyer can use strategic leverage to negotiate a better severance package on your behalf.
10. Free Consultation – Get Expert Legal Advice First
Many Nevada law firms offer a free consultation to review severance agreements. This means you can discuss your situation with an employment lawyer at no cost before making a final decision.
With an expert’s advice, you can determine whether you should negotiate, accept, or even reject the offer. This initial consultation can provide clarity, allowing you to take the next steps with confidence.
Real-World Example: Why Legal Counsel Matters
Imagine an employee in Las Vegas who has worked at a company for ten years. Upon termination, the employer offers a severance package with a non-compete clause that prevents the employee from working in their industry for two years.
If the employee signs without an attorney review, they might struggle to find a comparable job. However, with legal assistance, they could negotiate a shorter non-compete period or receive additional compensation to offset the career disruption.
Final Thoughts
A severance agreement is a crucial document that impacts your future job prospects, finances, and legal rights. It’s essential to fully understand every clause before signing.
An experienced Nevada employment attorney can review your severance agreement, negotiate better terms, and protect your rights.
Don’t sign away your future—seek legal counsel to get the best outcome possible. Investing in an employment attorney now can save you financial and legal trouble in the long run, ensuring that your severance package aligns with your best interests.
If you’re unsure where to turn, the professionals at Bourassa Law Group can guide you through the legal process. We will ensure you receive the best severance package possible based on your circumstances.
Note: We even have a team of qualified employment lawyers in Las Vegas if you are there.
1-800-870-8910