A severance pay may be provided by your employer if you are fired or you resign on your will in California. These packages include some benefits along with a continuation of money. If a contractual obligation or employment policy comes into play the employers do not provide these severance packages in California. You should understand all the terms of this package and you can also negotiate with your boss!

Some FAQ’s On Severance Pay Laws In California:

Are Employers Entitled To Receive Severance Pay?

Employers are not always entitled to receive severance pay. There may be in some case that the employee decides to termite the relationship with the employer. In this case, the employer is not compelled to give any severance to that particular employee.

Why Do Employers Offer Severance Pay When It Is Not Required?

There are many reasons that an employer offers severance pay. There might be a case that a business is not going good and it needs to fire some of the employees where those employees can negotiate with the employer to get some severance pay. Another scenario can avoid potential litigation when some disputes occur between the employer and the employee.

What Terms Are Mainly Included In Particular Severance Agreements?

• Confidentiality
• No admission of liability
• Not a chance of admission in the present as well as future employment.
• Non-disparagement, often unilateral.
• General release with a civil code section 1542 waiver releasing all unknown or known claims.
• Return of all company property and also non-solicitation of customer clause.

Does The Employer Have To Pay The Employee For A Release Of Claims?

The employer can ask the employee to release all claims the employee may have against that particular company. Some considerations are meant to be provided for the release of the employer’s rights. This consideration includes something of valuable important for both sides. These considerations not only come in form of payments but also agreements when an employee is sacked.

Do Employees Over 40 Years Or Above Get Any Kind of Special Considerations?

The OWBPA (Older Workers Benefit Protection Act) protects all employees who are 40 years and above. If any kind of age discrimination comes into play there are certain requirements also. The employee should consult with an attorney in which case a time period of 21 days is given to the individual to consider the agreement and 7days are given to invoking the clause. The 21 days period can be waived but the 7 day period cannot be waived.

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Non-Compete Agreements for your business should be drafted by attorneys so they meet particular company needs, conform to relevant state laws, and are deemed enforceable.

Under a Non-Compete Agreement, an employee agrees not to compete with the employer after employment ends. Confidentiality covenants are generally also included in such agreements. In enforcing such agreements, courts must balance the need to protect its interests with the employee’s need to make a living. Therefore, the documents must be very carefully drafted to ensure enforceability.

There are a few issues to consider when implementing non-compete agreements

Competition

Competition must be carefully defined. In general, the more narrowly this term is defined the more likely it will be able to be enforced. If you define competition as companies in any field related to your industry, you will be too broad in your definition and have difficulty enforcing after an employment split.

Customers

Customers or a specific type of customer must be clearly defined if customer relationships are to be protected.

Goodwill

The good relationship an employee or company has with a customer is an asset that belongs to the company. However, courts closely examine the nature of the employee’s responsibilities and relationship with customers to determine whether goodwill is threatened.

Limit Your Non-Compete Agreement to Key Employees

Key employees with significant responsibilities and/or regular customer contacts are more likely to be restrained from competing. Non-competes for lower level employees are hard to justify.

Confidential Information Must Be Clearly Defined and Identified

The only information that may be protected is confidential information. Courts consider the importance of the information to the business, if the information is otherwise available to third parties, and what restrictions were implemented to prevent its disclosure. Be careful not to be over-inclusive in your definitions of what you consider to be confidential.

Start from the Beginning

Non-compete agreements must be supported by consideration. In other words, employers must give something to the employee in exchange for his/her promise not to compete. Hiring an applicant generally, provides the necessary condition.

After employment has begun, additional consideration may be required, such as a signing bonus, a promotion, or a pay increase. However, such agreements are stronger and more easily enforced if signed at the start of employment.

Agreements

Agreements must be negotiated in good faith and be restricted in time and location. These concerns are particularly important in today’s high-tech environment where information becomes obsolete quickly and markets change daily. In some industries, one year can equate to several generations or an eternity.

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