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Texas employers understand how complex separating from an employee can be. Some opt to provide severance packages to ensure a smooth transition and dodge any future legal issues.
In the Dallas-Fort Worth Metroplex and throughout Texas, employers don’t have to offer severance. Sometimes, when they do, the agreements are one-sided and unfair.
Edel Cuadra has more than two decades of experience in employment law and is prepared to help ensure that any severance package is both legal and fair to the employee on the receiving end.
Texas companies that draft severance packages typically include several standard components.
The length of pay employers provide in severance packages varies. The minimum is usually two weeks, but you may also encounter packages that include up to six months or longer.
Any business offering group benefits to at least 20 employees must provide Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation health insurance through its group insurance plan.
Depending on the situation, terminated employees can apply for unemployment benefits, which the employer may approve or deny. Clauses commonly included in severance agreements deal with liability, non-disparagement, return of company equipment, confidentiality, and Age Discrimination in Employment Act (ADEA) (for employees over age 40). Unless company buyouts or union contracts generate a package in advance, most employers typically create a severance agreement at their discretion. The law requires nothing, so employers usually offer whatever benefits they wish.
A severance agreement is a legally binding agreement that outlines the terms and conditions of the separation between you and your previous employer. Both parties are obligated to fulfill their respective duties and responsibilities stated in the agreement, and any violation of these terms would constitute a breach of contract.
In the event of such a breach, you may be entitled to take legal action against your employer, but it’s important to note that the specific legal remedies available to you may be limited by the terms of the agreement. It’s common for severance agreements to include provisions that require you to waive your right to a jury trial and instead pursue dispute resolution through arbitration.
These terms are designed to streamline the resolution process and minimize the costs and time associated with a traditional legal proceeding. The severance agreement will generally outline the specific steps and procedures to be followed in the event of a dispute.
With over two decades of experience, Edel Cuadra is the go-to employment lawyer for Dallas-area employees wanting to ensure that their severance package meets all legal requirements.
Cuadra Law can help make sure that your agreement is as favorable to you as possible.
Edel Cuadra’s professional guidance assures that all clauses in your severance agreement are fair and legally binding. In challenging times when transitioning between jobs may be necessary, he can help prevent employee exploitation.
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Edel Cuadra is passionate about protecting workers under Texas's employment laws. For decades, he has seen the damaging effects of unfair severance agreements and has committed a sector of his practice to helping employees collect what they're due. If an employer has violated your rights or you're looking for answers regarding a potential separation agreement, reach out today for an informative and free consultation with Edel Cuadra.
At Cuadra Law, Edel Cuadra works for employees in the Dallas area. He uses state and federal laws to protect employees against a wide range of workplace violations.
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