Severance Agreements in Florida: What You Need to Know
A severance agreement is a legal document that is signed when an employee is terminated from a job. It is an agreement between the employer and the employee that outlines the terms of the employee’s departure, as well as any compensation or benefits the employee will receive upon leaving the company.
In Florida, severance agreements are not required by law, but they may be offered by employers as a way to provide employees with additional compensation or benefits when they are terminated.
Here are some important things to know about severance agreements in Florida:
1. Severance agreements may include a release of claims.
Most severance agreements in Florida include a provision that requires the employee to release any claims they may have against the employer. This means that the employee agrees not to sue the employer for any reason related to their termination or employment.
2. Severance agreements may include non-compete clauses.
Non-compete clauses are common in severance agreements in Florida. These clauses prevent employees from working for a competing company for a set period of time after leaving their current employer.
3. Severance agreements may affect unemployment benefits.
If you sign a severance agreement in Florida, it may affect your eligibility for unemployment benefits. The Florida Department of Economic Opportunity (DEO) considers severance pay to be “wages” that are earned in the week they are paid.
4. Severance agreements must comply with federal and state laws.
Severance agreements in Florida must comply with federal and state laws. For example, the Older Workers Benefit Protection Act (OWBPA) requires that employees over the age of 40 be given at least 21 days to review and sign a severance agreement, and seven days to revoke their signature after signing.
5. It’s important to have a lawyer review your severance agreement.
Before signing a severance agreement in Florida, it’s important to have a lawyer review the document. An experienced attorney can help you understand the terms of the agreement and advise you on whether it’s in your best interest to sign it.
In conclusion, severance agreements can be a beneficial way for employees to receive additional compensation and benefits after being terminated from their job. However, it’s important to fully understand the terms of the agreement and seek legal advice before signing. By doing so, employees can ensure that their rights are protected and they are receiving fair compensation for their departure from the company.