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How Can I Ensure My Severance Agreement is Enforceable in Florida or New York?
Receiving a severance agreement can often be a valuable lifeline during a challenging time. It commonly comes at the end of an employment relationship, offering a sound and well-negotiated financial cushion in exchange for signing away certain rights.
But what happens if the agreement is not as legal as it seems? In Miami and New York, the rules for these contracts are structured and specific. With the help and guidance of a seasoned legal professional, you can be confident that your agreement is legally sound, enforceable in court, and that your rights are protected.
The commercial litigation lawyers at Linton Robinson & Higgins understand your stress. They strive to help you navigate these complex situations, and for over 50 years, they have helped clients in Florida and New York. Through open communication and fighting for what is right, they will provide you with your legal options and ensure that the severance agreement you sign is legally enforceable.
What Legally Makes a Severance Agreement Legally Binding?
A severance agreement is a contract, and like any contract, it must meet specific, strict requirements to be enforceable. Without these key elements, your severance agreement may be challenged in court.
The common purpose of a severance agreement is to provide you, as a departing employee, with needed benefits, often in exchange for a release of claims against your employer. This “release” is commonly the core of the agreement for most employers, as it is designed to protect them from future lawsuits.
For any severance agreement to be enforceable, there must be “consideration.” This legally means that both parties receive something of value.
For you, as the employee, this is the severance pay and benefits that the agreement stipulates. For your employer, it is your waiver of any further legal claims. The value of the consideration must be more than what the employee is already owed, like a final paycheck or earned vacation time. If your severance agreement doesn’t have proper legal consideration, it may not be legally valid.
What Is the Role of the Older Workers Benefit Protection Act (OWBPA)
If you are 40 or older, federal law provides a significant and critical layer of protection. The Older Workers Benefit Protection Act (OWBPA) requires specific provisions that must be present in a severance agreement to be legally enforceable. These provisions ensure that any waiver of rights under the Age Discrimination in Employment Act (ADEA) is made knowingly and voluntarily.
Under the OWBPA, the agreement must:
- It should be written in plain, understandable language.
- Clearly state that you are waiving your rights under the ADEA.
- Provide a specific amount of time to consider the offer: commonly 21 days for an individual termination or 45 days if the termination is part of a larger group layoff.
- Give you seven days to revoke your signature after signing.
- Always advise you to consult with an experienced lawyer before signing.
Failing to meet these requirements can make your entire severance agreement unenforceable.
Specific Considerations Under Florida Law
Unfortunately, Florida has no statute requiring employers to offer severance pay. Any offer is made at the employer’s discretion. If you are presented with a severance agreement, it should be carefully reviewed by a legal professional. When these offers are made, they’re often a way for the employer to protect their business from future litigation.
Restrictive covenants, which include non-compete, non-solicitation, and confidentiality agreements, can be a key point of contention in many Florida severance agreements. But, as your lawyer will explain, some strict Florida laws govern the enforcement of these covenants. To be upheld by a Florida court, these provisions must be considered reasonable. The court will look at the duration, geographic area, and nature of the business interest the employer is trying to protect.
For example, a non-compete clause must be reasonable in time and scope. A court will not enforce a non-compete that lasts excessively or covers an entire state if the business’s interests don’t justify it. In Miami, where many industries are concentrated, a non-compete must be carefully drafted to avoid being overly broad.
Specific Considerations Under New York Law
Like Florida, New York has no law requiring employers to offer severance pay. But, in some circumstances, the employer often makes a strategic choice. Also, the terms of a New York severance agreement must be fair and not unconscionable. The courts commonly will review the circumstances under which the contract was signed to determine its validity.
Recent developments in New York law have focused on transparency. For example, a new bill requires that severance agreements include a written notice informing the employee of their right to consult an attorney. This is a critical step to ensure that employees are not pressured or coerced into signing away their rights without proper legal guidance.
Non-compete clauses have also faced considerable scrutiny in New York. Recently, a bill that banned most non-compete agreements statewide was passed. While this specific bill was vetoed, the legal landscape in New York remains very focused on protecting employee mobility and their rights.
The New York courts are hesitant to enforce non-competes that are overly broad or unsupported by a legitimate business interest. For example, in New York City’s competitive financial district, courts often scrutinize non-compete agreements to ensure they do not unfairly restrict an employee’s ability to find new work.
Some Facts About Enforcement and Dispute Resolution
The matter can go to court if a dispute over a severance agreement arises. In New York, these cases are often heard in the Commercial Division of the New York County Supreme Court, which usually manages complex business disputes. In Miami, complex business cases are typically heard in the Complex Business Litigation Division of the Eleventh Judicial Circuit Court.
Whether in Miami or New York, the litigation process can be legally daunting and stressful. This is why it’s essential to have a legal team that will diligently and meticulously review your agreement, identify potential flaws in its enforceability, and build a strong strategic case on your behalf. Your severance agreement law team will usually face large corporations or their legal teams, so significant litigation experience is invaluable. Your law team must have the knowledge and the tenacity to fight for rights, whether in a courtroom or at a negotiation table.
Honest and open communication is also a key element, and your severance agreement lawyer must always be available to discuss your case and strategy. The skilled and compassionate lawyers at Linton Robinson & Higgins, LLP, will always strive to empower and inform you. They are always just a phone call away. Working as a close-knit team significantly helps you and your family get the best possible outcome.
I Need Help Reviewing my Severance Agreement. How Should I Proceed?
A severance agreement is a critical and binding legal document that can affect your career and financial future. Once you sign it, you are likely giving up your right to sue your former employer for most issues that may have occurred during your employment. This includes claims of discrimination, harassment, or wrongful termination.
Before you sign anything, it’s critical, and sometimes legally binding, that you have an experienced legal team review the agreement. Your tenacious lawyer will help you understand the terms, identify any clauses that may be unenforceable or unfair, and negotiate for better terms on your behalf. They will fight for you to ensure that the agreement is fair and that you receive the benefits you are owed.
At Linton Robinson & Higgins, LLP, we have over 50 years of combined experience helping clients with severance and other commercial litigation matters. We are truly empathetic to your situation and tenacious in our pursuit of justice. We also offer free consultations to discuss your specific case and always stand ready to defend your rights and ensure your voice is heard. Contact our Miami office at (786) 882-7316 or our New York City office at (332) 241-9036 to see how we can assist you and ensure your secure future.
