Contract & Severance Agreements

Has an employer offered you a new job or promotion, or have they presented you with a severance agreement regarding the end of your employment? What you do next could have big consequences for your earning capacity, professional opportunities, and career advancement. As such, it’s critical to have experienced legal guidance from an attorney who can negotiate a fair and favorable agreement on your behalf. Contact Bernabei & Kabat, PLLC, for an initial case evaluation, and let us help you negotiate an employment contract or severance agreement that protects your rights and interests.

Why Choose an Employment Law Attorney From Bernabei & Kabat, PLLC?

The terms of an employment or severance agreement can significantly affect your professional and financial interests. Here’s why you should choose an employment lawyer from Bernabei & Kabat, PLLC, to help you negotiate a favorable agreement:

Our firm has represented the rights of hardworking clients in Maryland, Washington, DC, and Virginia for decades. In that time, we’ve built a reputation for delivering results for employees across the region.
We provide clients with the dedicated support and advocacy they need when they need it most. You will never feel that you must face a critical contract negotiation with your employer on your own. You can rest assured that our attorneys will work as hard as possible to help you achieve a favorable agreement to protect your career and income.
Our lawyers have over 75 years of combined legal experience in employment law matters. We have developed deep insights into a wide range of circumstances and situations, which helps us tailor our legal solutions to your unique needs, concerns, and goals.

Understanding Employment and Executive Compensation Contracts

Many employees work under employment contracts or executive compensation agreements that establish the terms and conditions of their employment. These contracts can cover topics such as:

The employee’s position or title
The employee’s expected core job duties
The employee’s pay (e.g., hourly wage or salary)
The employee’s benefits, including health/dental/vision insurance, life insurance, paid time off, and fringe benefits like fuel/travel allowances
Additional compensation, such as bonuses, commissions, or profit shares, and the terms under which the employee can receive such compensation
Restrictive covenants, such as confidentiality provisions/NDAs, non-solicitation clauses, or non-compete provisions
Invention/IP assignment provisions
Whether the employee works “at will” (the employer or employee may terminate the employment relationship at any time and for any reason or no reason at all, provided that an employer’s reasons for termination do not violate statutory law or public policy)
Whether the employer must have cause to terminate the employee and the permissible grounds for termination
Alternative dispute resolution procedures for disputes arising from the employment relationship
Choice of forum/law clauses

Higher-level employees and executives may also negotiate separate compensation agreements that address the detailed terms for more complex forms of compensation. Examples of these more complicated payment arrangements include:

Performance-based bonuses, including the metrics to determine whether the employee/executive has met the threshold for a bonus award
Profit shares
Deferred compensation
Stock options, restricted stock units, or other equity compensation, including vesting schedules for such compensation
Mandatory severance compensation
“Garden leave” arrangements (compensation for extended non-compete terms)

Our firm has extensive experience negotiating employment contracts and executive compensation agreements. Our goal is to help our clients obtain fair agreements that protect their rights and interests and provide appropriate compensation for their labor and skill.

Understanding Severance Agreements

Severance agreements govern the various factors involved in the end of an employee’s employment. An employer may request a severance agreement as a standard part of an employee’s departure. Employers also may offer severance agreements when they lay off employees. Moreover, employers frequently seek severance agreements with employees who depart the company amid a legal dispute with the employer, such as a dispute over discipline or alleged misconduct or after the employee has asserted discrimination or retaliation claims.

Severance agreements can provide a clean end to the employment relationship by compensating an employee terminated against their will while also releasing any claims the parties may have against one another.

Here are some of the most common components of these agreements:

Severance compensation – This money is paid to the employee as consideration for entering the severance agreement. An employee may receive a lump sum payment, or the employer may continue full or partial payments of the employee’s wages or salary for a limited period. Severance compensation can help provide a financial cushion as an employee looks for their next job.
Continued benefits – A severance agreement may continue a worker’s employment benefits, such as health insurance, either through COBRA benefits or paid for by the employer.
Pensions and Contingent/Vesting Compensation – Severances can address what happens to an employee’s pension benefits or compensation subject to contingencies or vesting schedules.
Restrictive covenants – Severance agreements may impose non-disclosure, non-solicitation, or non-compete obligations to departing employees.
Confidentiality provisions – Employers and employees may agree to keep the terms of a severance agreement confidential.
Non-disparagement clauses – Severance agreements may require an employee not to disparage the company publicly or require an employer to provide a positive reference or refrain from offering a negative one for the employee.
Rehire eligibility – A severance agreement may expressly address whether the employee can apply for another position with the employer or its affiliates.
Alternative dispute resolution provisions – Some severance agreements may require mandatory mediation or arbitration of legal claims or disputes arising from the agreement.

Your employer should give you a reasonable time in which to review a proposed severance agreement and seek legal counsel. Federal law mandates a minimum amount of review time for workers aged 40 and older. Our firm can help you understand your rights and obligations under a proposed severance agreement. We can also handle negotiations with your employer to obtain more favorable terms that put you in the best position to begin the next chapter of your career.

How Can an Employment Law Attorney Help You Negotiate Agreements With an Employer?

Bernabei & Kabat, PLLC, is ready to represent you as you negotiate for an employment contract, compensation agreement, or severance arrangement. Let an employment law attorney from our team help you pursue a fair and favorable agreement with your employer by:

Carefully reviewing the terms of a proposed agreement to explain your rights and responsibilities under the contract
Discussing your needs, concerns, and goals to develop a tailored legal strategy for contract negotiations
Vigorously negotiating with your employer on your behalf to secure more favorable terms in an agreement
Advising you at each stage of the negotiations to help you make informed decisions about accepting an agreement or making counteroffers

Contact Our Firm Today for Experienced Legal Guidance During Employment and Severance Agreement Negotiations

Before you sign an employment contract or severance agreement, you should consult an experienced employment law attorney to determine whether the agreement reasonably protects your rights and future. Contact Bernabei & Kabat, PLLC, today for a confidential consultation and learn more about your options. Our legal team is ready to negotiate on your behalf for a favorable employment contract, executive compensation package, or severance agreement with your current or prospective employer.