severance

[tonbie]

What is the name of your state? Illinois

 

[PayrollHRGuy]

@tonbie
What is your question?

 

[tonbie]

What is the name of your state? Illinois My employer is eliminating my job and is giving me a severance package but wants me to sign termination papers stating i can't sue for age descrimination. I'm 65 but I was going to retire anyway. Is this common practice by employees?

 

[Zigner]

Does it matter?

 

[tonbie]

Not really, my employer asked to have a lawyer read it. Don't want to pay $400. Just want to make sure it's legal to do. I had no intentions of age descrimination.

 

[PayrollHRGuy]

I had no intentions of age descrimination.

It is legal.

 

[tonbie]

It is legal.

Thanks PayrollHRGuy. Wanted to make sure. He's a new boss, didnt like me from the go. I'm glad he made me a decent offer. 2 1/2 months severance pay and I can draw unemployment now and prolong my retirement.

 

[quincy]

Thanks PayrollHRGuy. Wanted to make sure. He's a new boss, didnt like me from the go. I'm glad he made me a decent offer. 2 1/2 months severance pay and I can draw unemployment now and prolong my retirement.

A severance agreement that includes a waiver of rights generally will be judged valid and enforceable if the employee has knowingly and voluntarily consented to its terms. These types of waivers are not uncommon.

However, you cannot be prevented from filing an EEOC claim or from testifying or participating in an EEOC proceeding despite having signed a waiver agreement. If you believe you were illegally discriminated against by your employer, you can still sue. It will then be up to a court to determine the validity of the agreement you signed.

A link to the EEOC that describes your rights as an employee (2009/2010 - may have more recent updates):
https://www.eeoc.gov/laws/guidance/qa-understanding-waivers-discrimination-claims-employee-severance-agreements

It is generally smartest and advised, prior to signing, that you have an attorney review any agreement that can bind you legally to its terms.

Congratulations on your retirement.

 

[LdiJ]

Thanks PayrollHRGuy. Wanted to make sure. He's a new boss, didnt like me from the go. I'm glad he made me a decent offer. 2 1/2 months severance pay and I can draw unemployment now and prolong my retirement.

It is not up to them as to whether or not you can draw unemployment. You have to be actively looking for work and available to work in order to legally draw unemployment. In addition, severance pay normally means you cannot start drawing unemployment until the severance period runs out. Your employer can tell you that they will not challenge you receiving unemployment, but other than that, they have no say in whether or not you end up receiving it. Since you intend to retire, that tends to indicate that you won't be actively looking for work.

 

[Bali Hai Again]

It is not up to them as to whether or not you can draw unemployment. You have to be actively looking for work and available to work in order to legally draw unemployment. In addition, severance pay normally means you cannot start drawing unemployment until the severance period runs out. Your employer can tell you that they will not challenge you receiving unemployment, but other than that, they have no say in whether or not you end up receiving it. Since you intend to retire, that tends to indicate that you won't be actively looking for work.

The severance pay (IRS Supplemental Wages) check may not be as what OP expects:
SS and Medicare tax = 7.65%
IRS Supplemental Wage withholding = 22%
State Supplemental Wage withholding = 4.95%

If possible the option to defer as much as possible into employer retirement account.

And OP has not reached FRA for SS benefits.

 

[cbg]

It is absolutely standard practice for a severance agreement to be contingent on an agreement not to sue. It's a common part of any severance agreement. The fact that your employer told you you could/should have a lawyer review it indicates that the employer is aware of the laws and doing his best to follow them.

 

[tonbie]

A severance agreement that includes a waiver of rights generally will be judged valid and enforceable if the employee has knowingly and voluntarily consented to its terms. These types of waivers are not uncommon.

However, you cannot be prevented from filing an EEOC claim or from testifying or participating in an EEOC proceeding despite having signed a waiver agreement. If you believe you were illegally discriminated against by your employer, you can still sue. It will then be up to a court to determine the validity of the agreement you signed.

A link to the EEOC that describes your rights as an employee (2009/2010 - may have more recent updates):
https://www.eeoc.gov/laws/guidance/qa-understanding-waivers-discrimination-claims-employee-severance-agreements

It is generally smartest and advised, prior to signing, that you have an attorney review any agreement that can bind you legally to its terms.

Congratulations on your retirement.

Quincy thank you. I agree with everything in release, should i still seek an attorney to clarify?

 

[tonbie]

It is absolutely standard practice for a severance agreement to be continent on an agreement not to sue. It's a common part of any severance agreement. The fact that your employer told you you could/should have a lawyer review it indicates that the employer is aware of the laws and doing his best to follow them.

CBG thank you. I do agree with contract. Should i still have attorney review it?

 

[quincy]

Quincy thank you. I agree with everything in release, should i still seek an attorney to clarify?

If you are sure you understand everything in the release and severance agreement, and if you are sure you understand all of the possible ramifications of signing the agreement, an attorney’s personal review is not vital.

I personally think it is smartest to see an attorney for a review and discussion, but that decision is obviously yours to make. I understand that the cost of hiring an attorney can play an understandable and not insignificant role in any decision you may decide to make.

 

[cbg]

If you would like to have a lawyer review it but cannot afford one, there are a couple of options. Your state Bar Association may be able to make referrals to you, as can your local Legal Aid. If there are any law schools in your area, they often will run "clinics" where third-year law students, under the guidance of their professors, will offer low- or no-cost consultations.

It's up to you if you think a review is necessary.