When your time with a company comes to an end, reviewing your severance agreement is a critical step. This matters whether you are an outgoing employee or someone looking for guidance. Many employees accept the terms without a full understanding of the details.
Some professionals recommend making a lawyer review severance agreements. But how does having severance agreement reviewed by an attorney in Colorado make a difference? Or does having an attorney review your severance agreement in Colorado make a difference? Let’s look at the basic info:
Why an Experienced Employment Attorney Matters
It is essential to have an experienced attorney look over the document to protect your interests. An attorney can help ensure that the severance agreement is fair and that your severance pay, benefits, and compensation are clearly spelled out.
However, that’s not the only reason, which is why we have listed down 7 different reasons for your reference. We will discuss why having an attorney review your severance agreement in Colorado is important, but ensure following the information we share.
1. Ensure a Fair and Transparent Severance Agreement
A severance agreement is a contract that outlines the terms of your departure. It covers severance pay, benefits, and other forms of compensation, including a lump sum if that is part of the offer. An attorney review provides expert insight needed to confirm that the document represents a fair severance agreement.
An experienced attorney can check whether your severance pay is adequate and whether the severance package meets the promises made by your employer.
Reviewing the document carefully clarifies whether the agreement includes any vague language that could later lead to legal issues. Many employees sign without a second thought; however, having a lawyer examine the document gives you the advantage of knowing that your employment relationship ends on terms that protect your financial interests.
How This Helps
This careful review is particularly important if you are facing a situation where you may be wrongfully terminated. The attorney can guide you on whether the severance agreement provides the compensation and protection you deserve and ensure that your rights remain intact before signing the contract.
2. Understand Colorado Law and Labor Laws
Colorado law and labor laws provide specific rights and protections for employees. An attorney familiar with employment law can explain how these laws apply to your severance agreement.
For many employees, the details of Colorado Law might seem overwhelming; however, legal counsel from a reputable law firm makes it easier to understand the significance of each clause.
For example, if you have been wrongfully terminated, you may have a legal claim against your former employer. An employment attorney can determine if the severance package complies with labor laws and meets the standards set by Colorado Law.
This understanding is vital if the agreement includes clauses that affect unemployment insurance or limit your right to claim benefits in the future.
Having legal counsel review the severance agreement provides clear explanations of how your rights are protected by employment law, enabling you to make informed decisions whether you are considering a new job or evaluating if your severance agreement should be renegotiated.
How This Helps
Consulting with employment attorneys ensures that every detail of the contract, from severance pay to the potential for punitive damages in a lawsuit, aligns with your best interests.
Legal experts can also explain how non compete agreements or non disparagement clauses might affect your future employment opportunities, so you are not caught off guard when starting your next job.
3. Protect Your Legal Rights and Interests
Your legal rights should be a top priority when signing a severance agreement. An attorney review is essential to ensure that you do not unknowingly give up rights that could be valuable later.
For instance, some contracts may contain language that prevents you from pursuing a lawsuit if you are wrongfully terminated.
An experienced attorney will examine the document to confirm that nothing in the severance agreement limits your ability to file a legal claim in the future.
Legal counsel will also check if the agreement includes provisions that could affect your chance of recovering unpaid wages. Protecting your interests means maintaining the freedom to take action if necessary, such as seeking compensation for wrongful termination or challenging clauses that might lead to punitive damages.
Having an employment lawyer review your severance agreement ensures that every provision is enforceable and that the terms of your separation are clearly stated.
How This Helps
An attorney who understands the subtleties of legal issues serves as a safeguard against any hidden language that could restrict your rights, ensuring that you maintain the ability to protect yourself if legal issues arise after your departure from the former company.
4. Identify Hidden Clauses and Avoid Legal Issues
Severance agreements sometimes contain hidden clauses that are not immediately obvious. Many employees may not realize that the document they are asked to sign might include non compete agreements, non disparagement provisions and clauses that can affect their future employment.
An attorney review helps you identify these clauses and understand their impact. For instance, a non compete clause might restrict you from working in a similar field or with certain companies for a certain period.
Similarly, a non disparagement clause might limit your ability to speak about your former job or employer. These provisions can have a long-lasting effect on your career, especially if you plan to secure a new job soon after signing the agreement.
How This Helps
An employment lawyer for severance disputes from a trusted law firm will carefully examine the severance agreement. This helps ensure that it does not include hidden language that could harm your interests. This thorough review helps you avoid potential legal issues. The issues can include a lawsuit over unpaid wages or a legal claim if you believe you have been wrongfully terminated.
Having legal counsel review the document provides professional guidance through the details and helps you decide if the agreement is fair.
5. Negotiate Better Terms for Severance Pay and Benefits
Negotiating the terms of your severance package can be challenging without proper legal support. An experienced attorney review gives you an ally who can help negotiate better terms.
Employment attorneys understand what constitutes fair severance pay and can advise in the best way. They can guide you on whether the compensation and benefits offered are reasonable or not.
Often, the initial severance package may not cover all aspects of compensation. This may include a lump sum payment or provisions for unpaid wages. A thorough review can highlight areas where the severance pay could be improved.
How This Helps
Legal counsel can also help clarify if the severance package includes essential benefits like health insurance or unemployment benefits. With the right attorney by your side, you gain the power to negotiate changes. Similarly, you ensure you receive the compensation you deserve.
6. Secure Continued Health Insurance and Unemployment Benefits
One of the most immediate concerns after termination is the continuity of benefits, especially health insurance. Losing a job often means losing access to health insurance, which can have serious implications for you and your family.
An experienced attorney will ensure that your severance agreement addresses the continuation of health insurance for a certain period. It helps in preventing any gaps in coverage as you transition to a new job.
In addition to health insurance, the agreement should also address unemployment insurance and unemployment benefits. Many employees are unaware of how severance packages interact with state benefits.
Legal counsel can clarify whether the terms affect your eligibility for unemployment insurance. Therefore, they help with protecting your interests during a difficult time.
How This Helps
An attorney review examines other benefits in the severance package to ensure that all compensation is fair and meets the standards of employment law.
This review covers provisions related to a lump sum payment, unpaid wages, and any other compensation you might be entitled to receive.
With an experienced attorney on your side, you can be confident that the agreement covers every detail, from health insurance to the timing of your benefits.
7. Safeguard Your Future Employment and Career Prospects
Your future employment is just as important as the immediate benefits outlined in your severance agreement. Certain provisions, such as non compete agreements and non disparagement clauses, can have a lasting impact on your ability to find a new job. An attorney review ensures that your ability to secure a new job remains intact.
An experienced attorney will examine the agreement for any language that might restrict your employment opportunities. For example, a non compete clause might limit the types of jobs you can apply for or the geographic area where you can work.
Similarly, non disparagement provisions might prevent you from speaking about your former employer, even if you have valid concerns. These restrictions can affect many employees, especially when starting fresh in a new job.
How This Helps
Legal counsel helps you understand the true implications of these provisions and advises you on whether they are enforceable under Colorado Law.
Discussing these issues with an employment attorney provides insights on protecting your future without compromising your current benefits.
This step is crucial for former employees and departing employees who wish to maintain a positive employment relationship with future employers. Moreover, they can also help with overboard confidentiality agreements if the situation requires it.
Final Thoughts
Having an attorney review your severance agreement in Colorado is a wise decision that protects your rights, benefits, and future employment. A careful review from legal counsel ensures that every provision—from severance pay to non compete clauses—is clear, fair, and enforceable.
Reach Out To The Employment lawyers at BLG
If you need assistance, consider reaching out to Bourassa Law Group for a consultation today. Their experienced employment attorney can help guide you through the process and ensure that you sign an agreement that truly serves your best interests.
1-800-870-8910