If I was offer a severance package and take it, can I still sue the company later?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I was offer a severance package and take it, can I still sue the company later?
I was laid off recently and was offered a severance package. In the document it says that I cannot but I read in the internet that even if I take the severance since I am receiving a standard package, I could still suit the company. I complained before to HR and they told me they won’t retaliate against me. I participated in several projects and I got a good evaluation. There was always an excuse for not being promoted. Also, last year I took some of the responsibilities of a Senior Manager but my job was not upgraded to it.
Asked on March 13, 2016 under Employment Labor Law, New York
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Don't believe everything you read in the internet--or at least understand when it' not applicable. First, if you sign a contract, which is what a severance agreement is, the specific terms of *that* contract control; it doesn't matter what happens in 99 out of a 100 other contracts, what matters is what *your* contract says. So if your document says you are giving up the right to sue, you are giving up the right to sue.
Second, while I have not seen the website you refer to, what I suspect it means, since you reference a "standard" package, is that if your company, like many, gives everyone 2 weeks or 2 weeks plus 1 per year of service without requring the employee to sign anything, that severance would not bar a lawsuit--getting severance itself isn't what stops you from suing, it's contractually obligating yourself to not sue when you sign the severance agreement, so no agreement, no bar.
But companies don't have to offer any severance at all, and if they choose to, can require an employee to give up the right to sue in exchange for it. So if your company is only offering you severance if you sign a severance agreement, and that agreement will stop you from using, if you sign the agreement to get the severance, you can't sue.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.