Severance Agreement Lawyer in Moline, IL

What is a Severance Agreement?


A severance agreement is a legal contract between an employer and an employee that outlines the terms of the employee's departure from the company, typically when they are being terminated or laid off. It may include provisions such as severance pay, continuation of benefits (like health insurance), or outplacement services to help the employee transition to a new job.


In many cases, the agreement will also require the employee to waive any legal claims they might have against the employer, such as claims of discrimination, wrongful termination, or unpaid wages. By signing the agreement, the employee agrees not to sue the employer in exchange for the compensation or benefits provided in the agreement.


Severance agreements are voluntary, meaning employees aren’t obligated to sign them, and the terms can sometimes be negotiated. However, once signed, the agreement is legally binding.

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FOR EMPLOYEES

Severance Agreement Review — $600 Flat Fee

Your severance agreement can affect your compensation, benefits, legal rights, and even your next career move. Before you sign, have an experienced employment attorney review the terms, explain what you may be giving up, and identify areas that may warrant further discussion or negotiation.

GET YOUR AGREEMENT REVIEWED

What We Review in Your Severance Agreement

WHAT'S INCLUDED

Release of Claims

Understand the rights you may be giving up

Severance Pay

Review the compensation being offered

Non-Compete & Restrictions

Know how the agreement could affect your next move

Potential Legal Claims

Identify issues that may affect your negotiating position

Confidentiality & Non-Disparagement

Understand what you can and cannot say

Benefits & Compensation

Review insurance, bonuses, commissions, PTO and other benefits

Deadlines & Review Rights

Know how much time you have before signing

Negotiation Options

Understand what terms may be worth discussing

Unemployment Benefts

Understand how your severance agreement may affect your eligibility

A severance agreement often requires an employee to release certain legal claims against their employer in exchange for severance pay or other benefits. Before signing, it is important to understand exactly which rights and potential claims the agreement asks you to give up.


Katz Nowinski P.C. can review the release language and explain how it may affect your rights. Depending on your circumstances, this may include potential claims involving discrimination, retaliation, harassment, wages, employment agreements or other workplace issues.


We also look for language that may be unnecessarily broad, unclear or potentially affect rights beyond what you expected when you received the agreement.


The goal is simple: know what you are agreeing to before you sign.

There is no single formula that determines what every employee should receive in a severance package. The amount offered can depend on your position, length of employment, compensation, circumstances surrounding your departure and the terms your employer wants you to accept.


Our attorneys can review the compensation being offered alongside the obligations and rights contained in the agreement.


This may include:

  • Severance pay
  • Payment structure and timing
  • Outstanding wages
  • Bonuses or commissions
  • Accrued vacation or PTO
  • Other compensation you may be entitled to receive

Understanding the entire financial package can help you determine whether the proposed agreement makes sense for your situation.

Your severance agreement may affect more than your relationship with your former employer. Certain provisions can potentially impact what you are able to do next.


We review provisions involving:

  • Non-compete restrictions
  • Non-solicitation agreements
  • Confidentiality requirements
  • Trade secrets and proprietary information
  • Restrictions involving former customers or clients
  • Restrictions involving former coworkers

Katz Nowinski P.C. can help you understand what these provisions mean, how they may affect your future employment opportunities and whether particular terms deserve closer attention before you agree to them.

The circumstances surrounding the end of your employment can be just as important as the language contained in the severance agreement.


Before signing away potential claims, it is important to consider what happened leading up to your termination, layoff or separation.


For example, we may discuss whether your employment ended after you:

  • Reported workplace misconduct
  • Raised concerns about illegal activity
  • Made a discrimination or harassment complaint
  • Requested a workplace accommodation
  • Exercised a protected employment right
  • Reported wage or compensation concerns
  • Took protected leave

Katz Nowinski P.C. handles employment law and whistleblower matters, allowing our attorneys to look beyond the severance document itself and consider the circumstances surrounding your departure.

Severance agreements frequently contain provisions governing what an employee can disclose about the agreement, the employer or the circumstances surrounding their departure.


These provisions can have consequences long after your employment ends.


We review confidentiality, non-disparagement and related language so you understand what the agreement requires of you, including whether restrictions continue after the severance payment has been made.


We can also identify provisions that may deserve clarification or further discussion before you sign.

The amount of severance pay is only one part of the agreement.


Your departure may also affect health insurance, retirement benefits, bonuses, commissions, paid time off and other compensation connected to your employment.


Our review can include issues involving:

  • Health insurance and COBRA
  • Accrued vacation or PTO
  • Bonuses and commissions
  • Retirement benefits
  • Equity or other incentive compensation
  • Final wages
  • Other benefits included in your employment package

We help you understand what the agreement provides, what happens to your benefits after your employment ends and whether there are financial issues that should be addressed before signing.

Severance agreements often come with deadlines, but that does not mean you should sign before you understand the terms.


Certain employees may also have specific federal protections governing the amount of time provided to consider an agreement and, in some circumstances, the ability to revoke an agreement after signing.


For example, federal law provides specific protections when an employee age 40 or older is asked to waive claims under the Age Discrimination in Employment Act. These requirements can include minimum consideration periods and a revocation period.


Katz Nowinski P.C. can review the deadlines contained in your agreement and help you understand the rights that may apply to your situation.

A severance agreement is a proposed contract. Depending on the circumstances, there may be terms worth discussing or negotiating before you sign.


Potential areas for discussion can include:

  • Additional severance compensation
  • Payment timing
  • Continued health insurance benefits
  • Non-compete or non-solicitation restrictions
  • Confidentiality provisions
  • Non-disparagement language
  • References and future employment verification
  • Bonuses, commissions or other compensation
  • The characterization of your departure

The right approach depends on your agreement, your employment history and the circumstances surrounding your separation.


Our attorneys can help you understand your options so you can make an informed decision about what comes next.

A severance agreement may raise questions about your eligibility for unemployment benefits and when those benefits may begin. 


The answer can depend on the terms of the agreement, how severance compensation is structured and the circumstances surrounding the end of your employment.


We review provisions involving:

- Severance payments and how they are structured

- The stated reason for separation from employment

- Language regarding resignation or termination

- Unemployment benefit provisions

- Employer statements regarding unemployment claims

- Other terms that may affect your ability to seek benefits


Katz Nowinski P.C. can help you understand how the terms of your severance agreement may relate to unemployment benefits and identify language that deserves closer attention before you sign.

Why Katz Nowinski Attorneys at Law?

At Katz Nowinski P.C., we understand that navigating a severance agreement can be overwhelming. That's why our dedicated team of skilled lawyers in Moline, IL, is here to guide you through every step of the process. We specialize in protecting your rights and ensuring you receive fair treatment when it comes to your employment matters. Whether you’re facing job transition or negotiating the terms of your severance, our experienced attorneys have your back. Let us help you achieve peace of mind with a tailored approach that reflects your unique situation—because at Katz Nowinski, your future matters to us.

Why You Need a Lawyer for a Severance Agreement?

Signing a severance agreement can have significant implications for your future career, finances, and legal rights, which is why having a lawyer by your side is essential. These agreements often contain complex legal terms, and a skilled attorney can break them down into plain language so you fully understand what you're agreeing to. They’ll also identify any unfair or hidden clauses, such as overly restrictive non-compete agreements or waivers of your legal claims, that could limit your opportunities or compromise your rights.


A lawyer can also negotiate on your behalf to secure better terms. This might include increasing your severance pay, extending benefits, or removing unfavorable provisions from the agreement. They’ll assess whether the offer is fair and ensure it aligns with industry standards, taking into account factors like your role, tenure, and the circumstances of your termination.


Beyond financial considerations, an attorney ensures the agreement complies with all relevant laws and helps you navigate potential tax implications of your severance package. If your termination involved unfair practices, a lawyer can also explore options for legal action or negotiate a settlement. Ultimately, having legal guidance provides peace of mind, empowering you to make informed decisions and secure a severance package that protects your best interests.

Common Issues Seen with Severance Agreements

Waiver of Legal Claims

Most severance agreements require employees to waive their right to bring legal claims against the employer, including claims for discrimination, wrongful termination, or unpaid wages. This waiver can limit your ability to pursue legitimate legal action in the future.

Restrictive Covenants

Agreements often include clauses like non-compete, non-solicitation, or confidentiality provisions. These can restrict your ability to work for competitors, start your own business, or recruit former colleagues, potentially impacting your career prospects.

Unfair or Inadequate Compensation

The severance pay or benefits offered may not adequately reflect your contributions, tenure, or the circumstances of your termination, especially if your employer is trying to minimize costs.

Ambiguity in Terms

Some agreements may contain vague or unclear language that can lead to misunderstandings about what you’re entitled to or what obligations you have after signing.

Tax Implications

Severance pay is taxable, and depending on how it’s structured, it could push you into a higher tax bracket. Without proper advice, you may face unexpected financial consequences.

Pressure to Sign Quickly

Employers often impose tight deadlines to sign the agreement, leaving little time to carefully review the terms or seek legal advice.

No Mutual Release of Claims

While employees are typically required to waive their claims, employers may not always release their claims against the employee, which creates an imbalance in the agreement.

Lack of Continuation of Benefits

Severance agreements may fail to adequately address continuation of health insurance, retirement benefits, or other perks, leaving employees with gaps in coverage or unexpected expenses.

Overly Broad Confidentiality Clauses

Confidentiality provisions may be too restrictive, limiting your ability to discuss the terms of your severance with family, advisors, or future employers.

Violation of Employment Laws

Some agreements may include provisions that are unenforceable or illegal under local, state, or federal employment laws, such as overly broad non-compete clauses or insufficient severance terms.

WHY SEVERANCE AGREEMENTS MATTER

Severance agreements play a critical role in protecting the rights and interests of both employees and employers during the termination process. For employees, these agreements ensure they receive fair compensation and benefits, such as severance pay, health insurance, or extended benefits, while also clarifying their obligations post-employment. However, these contracts often include complex legal terms, waivers of legal claims, and restrictive covenants like non-compete or confidentiality clauses that can have long-lasting impacts on an employee’s career and financial stability. For employers, severance agreements provide legal protection and help prevent future disputes by ensuring clear, mutually agreed-upon terms. At Katz Nowinski Attorneys at Law, we understand the importance of negotiating and drafting severance agreements that are fair, enforceable, and compliant with employment laws, giving our clients peace of mind and the confidence to move forward.