Defendants moved to dismiss the plaintiff’s age discrimination claim on the basis that the severance package offering was not an adverse employment action, … In a majority of situations, severance pay laws do not require employers to offer severance packages to terminated employees -- but it could make sense to do so anyway. A severance package attorney can evaluate the employment situation to determine if there is leverage that the employee may not recognize such as violations of Public Policy including: discrimination, retaliation, harassment or other factors that will motivate the company to provide severance. Employment/Labor; This content is for your information only and is not intended to constitute legal advice. If, however, the employee being offered the severance agreement is forty (40) years or older, he or she is protected by the Age Discrimination in … The plaintiff, Karla Gerner, was Chesterfield County’s human […] As FindLaw points out, “If, for example, your company decides to give men a 20 percent increase in severance pay without any justification, you could face a discrimination lawsuit from the women that are entitled to severance pay.” 2. The allegation that she was offered a lesser severance package than comparable male employees, by itself, was sufficient to support a claim for gender discrimination. A typical severance package includes both a severance agreement and severance pay. Services. For more information on structuring severance packages to avoid discrimination claims, contact Mike at (301) 657-0730 or mjneary@lerchearly.com. However, a commonly accepted formula for coming up with the average severance package is: Number of Years Worked X 1 – 3 weeks + Minimum State Mandated Base = Severance Package. Exiting employees may ask to negotiate severance packages. brought to court, may be released by an employee, even if the claim is not specifically referred to in the release. In an uncertain economy, you may at some point face having your employment terminated. This is done to provide the employee with certain financial benefits (payments of money, medical coverage, etc.) So, the case was remanded to the lower court for discovery and possible trial on the merits of her Title VII claim. Some employers may think that the severance pay laws require them to offer severance packages to terminated employees in the form of some money and continuing benefits. By Mary Anne Ackourey and Anthony Del Rio Individuals offered less favorable severance packages than others in similar positions can sue for discrimination under Title VII, according to Karla Gerner v. County of Chesterfield, Va., a new decision by the United States Court of Appeals for the Fourth Circuit. What is a severance agreement? Learn how to negotiate a reasonable severance package, especially if you … Most statutory claims, including discrimination claims (e.g., Title VII, ADA, FEHA, WARN Act, etc.) in exchange for the employee agreeing not to sue or disparage the company. Please consult your attorney before acting on any information contained here. Keep in mind that because severance benefits are not mandatory, there is no one-size-fits-all package for employees.

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