“Questions about Severance Pay: What You Need to Know”

– Employers are generally not required to provide severance pay under the Fair Labor Standards Act.
– Companies often ask employees and contract workers to sign severance agreements to avoid potential disputes and maintain good-will.
– The amount of severance pay offered varies based on factors such as length of employment, position, company size and financial health, and the circumstances of the separation. – Common provisions in a severance agreement include compensation details and a release of claims.
– Employees should consider negotiating severance pay based on their legal claims and agreement terms.
– Employers can limit the amount of time to sign a severance agreement, but there are specific time requirements for employees aged 40 or older under the Age Discrimination in Employment Act. – Severance pay may be taxable depending on its categorization as wages or non-wages and the IRS’s agreement with that categorization.
– When provided with a severance agreement, it is recommended to consult with an employment attorney to understand the terms and negotiate additional pay or remove certain provisions.
– Cantrell Astbury Kranz, P.A. is a litigation boutique specializing in non-compete and unfair competition disputes, employment law, and business disputes, with experience representing a range of clients from Fortune 500 companies to individuals. – Cantrell Astbury Kranz, P.A. specializes in employment litigation, non-compete disputes, and business disputes in Florida and Georgia.
– The firm deals with issues such as shareholder and partnership disputes, unpaid commissions, and deceptive business practices.
– They also handle cases related to discrimination, harassment, whistleblower retaliation, and financial services law. – Breach of contract, partnership disputes, and franchisor-franchisee conflicts are common business disputes that Cantrell Astbury Kranz, P.A. handles.
– The firm also deals with securities and FINRA matters, defamation, libel, and slander cases, as well as sexual harassment and non-compete agreements.
– Other areas of expertise include unpaid commissions and bonuses, discrimination, harassment, and retaliation claims, as well as issues related to the Family and Medical Leave Act and executive compensation.
– Cantrell Astbury Kranz, P.A. is known for its litigation practice and recent successes in resolving business disputes.

Severance FAQs