Why Is My Employer Asking Me to Sign a Release of Claims?

Employment Law Firm Near Philadelphia With Offices in Paoli, Radnor, Exton, Plymouth Meeting and King of Prussia

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What is a the Effect of a General Release in Pennsylvania?

A General Release is a provision wherein you agree that, in exchange for some consideration (payment of money, usually), you will not in the future sue the employer for any conduct it engaged in prior to the date you sign the Release (i.e. discrimination, failure to pay you money you are owed, etc.)  A Release is binding upon you, and will in nearly all cases completely eliminate any right you would have to sue your employer for illegal employment practices you believe it engaged in prior to the date you sign the Release.  Also, by signing a Release, you are giving up the right to collect any money you believe you are owed except for any money you are promised in the Release.

Why Is My Former Employer Asking Me to Sign a Release?

Employers usually "bury" the Release provision in a Separation Agreement.  For you, the key to that Separation Agreement is the severance and benefits you are offered (i.e. medical coverage).  For the employer, the key is the Release. 

Employers want you to sign a Release after you have been terminated so that they will not have to worry about you later filing a lawsuit claiming that you were terminated illegally.  Companies typically offer severance and some other benefits in exchange for this Release.  If you sign the Release you will lose any and all rights you may have had to sue your employer for discrimination, wrongful termination, unpaid wages, commissions or bonuses, overtime, etc. 

Given that most companies only offer between 2 weeks and 3 months of severance to the average employee (and if you are getting 3 months you are doing reasonably well), and given that a good employment-based lawsuit can generate a year or more of salary and benefits, you should think carefully before signing a Release contained within a Separation Agreement.

One  favorite trick of companies is to include as "severance" an amount of money that is equal to what they already owe you under the law (such as accrued vacation pay, bonuses/commissions, pay for people who were fired without the amount of notice required in their employment agreement, etc.). 

Another trick companies use to get you to sign the Release is to agree that they won't fight your unemployment case.  That is what I call a promise without value.  If you are being offered severance, then you probably did not engage in willful misconduct, so you are going to get unemployment anyway.  Thanks for nothing!

What really chaps me the most, though, is when companies offer a meager severance, and ask for a Release, when they know they owe you a lot more in overtime or commissions they did not pay to you.

Philadelphia Employment Attorney representing Employees in Towns such as Malvern, Royersford, Blue Bell, Devon, Berwyn, Narberth, Bala Cynwyd, Bryn Mawr, Broomall, Lawrence Park and Aston

Separation Agreements always contain Releases, and Releases are always upheld by Courts.  If you have any question about whether you may be sacrificing important rights by signing a Release, you should really consider hiring a labor lawyer.  On many occasions, I have sat down with recently terminated people and told them something that they didn't know - that their rights under Federal statutes such as FMLA, FLSA, ADA and ADEA had likely been violated, and that signing away their rights to prosecute their claims for $700 was probably not a good idea!

When I spot a problem, and renegotiate a severance deal, I do so on a contingent fee basis - that means you pay us nothing unless you receive a better severance offer, and only a percentage of what we are able to negotiate above what you were initially offered.  Now, that's a fair deal!

You have read this article employment law / illegal / John Gallagher / lawsuit / negotiations / Newtown Square / philadelphia / release / rights / sue / wages / wrongful termination with the title negotiations. You can bookmark this page URL https://clapclapclappp.blogspot.com/2010/08/why-is-my-employer-asking-me-to-sign.html. Thanks!

Negotiating A Separation Agreement in Pennsylvania

Employment Law Firm Near Philadelphia Representing Only Employees

At the Gallagher Law Group, we represent only employees with workplace rights issues. Call 610-647-5027, e-mail me directly or send an e-mail inquiry via the "Fill Out My Form" box to the upper right of this page. We will respond promptly with an analysis of your situation, and discuss potential options going forward at no cost to you.

If you need an experienced labor law attorney to help negotiate a Separation Agreement, John A. Gallagher has bee practicing Employment Law in Pennsylvania since 1991.

Visit http://www.johnagallagher.com/.

How Do I Negotiate With May Employer to Get More Severance

Leverage!  The answer is leverage.  Unless you have an employment contract that guarantees you severance, an employer's offer of severance is purely voluntary, and likely motivated by a desire to have you sign a release of all claims.  The key, then, is to establish leverage; perhaps your termination was unlawful or potentially unlawful, perhaps you have not been paid for all the services you have rendered, or are owed a bonus. 

The Gallagher Law Group Routinely Negotiates Severance Individuals  in Communities Such as Quakertown, Ephrata, Downingtown, Phoenixville, Doylestown, Perkasie, Radnor, Wayne, Villanova, Newtown Square and Surrounding Areas

If you have a question about a separation agreement you have been offered, call us today and we will discuss your matter at no cost to you.  We frequently negotiate severance on a contingent fee basis - that means you pay us nothing unless you receive a better severance offer, and only a percentage of what we are able to negotiate above what you were initially offered.

You have read this article consultation / contingent fee / John A. Gallagher / labor law / negotiations / philadelphia / separation agreement / settlement / Severence / wrongful termination with the title negotiations. You can bookmark this page URL https://clapclapclappp.blogspot.com/2010/08/negotiating-separation-agreement-in.html. Thanks!

Non-Compete Law Firm in Philadelphia Area

Our Law Firm Concentrates on Helping Employees With Non-Competition Agreements Governed by Pennsylvania Law

Here are some answers to some of the most common questions I am asked about non-compete
agreements:

What is the Difference Between Non-Competition and Non-Solicitation?

Although commonly referred to as "non-compete agreements," these contracts typicallycontain 3 separate covenants of none: Confidentiality, Non-Confidentiality" and Non-Solicitation.  And each such covenant is treated differently under the law.

What Law is Used to Decide the Enforceability of My Non-Compete Agreement?

The majority non-compete agreement contains a "forum selection clause."  Therein will lie your answer.

Can the Company Enforce My Non-Compete Agreement if I am Fired?

Under Pennsylvania law, if you are let go for poor performance, your non-compete covenant is not enforceable.  Similarly, if you are laid off as part of a reduction in force, it will be difficult to enforce the non-compete.  However, your non-solicitation obligation will likely remain in full force and effect under these circumstances.

Are Non- Competition Agreements Enforceable in Pennsylvania?

Target New Customers, Not Old

Generally, Pennsylvania Courts do not enforce the non-competition component of such agreements if you are not interfering with your former employer's business.  If you solicit former customers, however, they will nearly always enforce the non-solicitation component of such agreements.

So, in other words, if you bare an "average" employee and merely join a company that competes with your former employer, courts will be very hesitant to force you to quit your new job.  However, if at your new job you solicit customers or clients that you serviced during your employment with your former employer, courts will generally enforce your non-compete agreement.

Nooks and Crannies = Trade Secret

NOTE:  If you posses trade secrets of your former employer, a Pennsylvania court will order you to stop working for its competitor even if you do not solicit any of its former customers. 

NOTE:  Arguing that your non-compete should be invalidated because it is for too long a duration or because it covers too broad of a geographic area, i.e. is "overly broad," will not work in Pennsylvania.

If a Former Customer Asks Me to Handle its Business, am I in Violation of My Non-Solicitation Agreement in Pennsylvania?

In general terms, if you are bound by a non-solicitation provision, and nevertheless take business from your former employer, the Court will stop you by enforcing the non-solicitation component of your non-compete agreement.  The key to avoiding problems with a non-compete agreement is you avoid taking any business from your former employer.

Does it Matter When I Signed the Non-Compete?


When Did You Sign?

In Pennsylvania, non-competition agreements are enforceable if they are entered into when you start employment.  If you are required to sign a non-compete agreement months or years after you start employment, it will be enforceable only if the employer gives you "additional consideration," i.e. a raise, a bonus, a promotion, opportunity to participate in a stock option plan, etc. at the time that they have you execute the non-compete agreement.

Can I Negotiate My Non-Compete Agreement?

There are a lot of work arounds and negotiating tactics you can use to minimize the impact of a non-compete agreement.  However, once you have "stepped in it," it becomes harder to extricate the former employee for a non-compete dispute.  Therefore, it is better to consult with counsel first concerning the "dos and dont's" where non-competes are concerned before taking any major steps.

John A. Gallagheris an employment lawyer who represents employees in Pennsylvania.

Click Here if you have questions about any aspect of employment law, from wrongful termination, to wage and overtime claims, to discrimination and retaliation laws, to Family and Medical Leave…

Click Here if you have questions about any aspect of Pennsylvania Unemployment Law, from willful misconduct, to voluntary quit, to Referee Hearings, to severance issues…

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