Data suggests that four out of every ten Americans will get fired from a job at least once in their lifetimes. While being involuntarily terminated from your job can be overwhelming, it can be more bearable if you and your employer entered a severance agreement before you were let go.
Severance Agreements and Policies Are Common
Most states, including Arizona, are at-will employment states. This means that employers can terminate their employees without prior notice or for almost any reason.
Moreover, these states do not require employers to offer their employees any sort of severance pay or agreement. An employer could terminate your employment, and you would be out of a job and a paycheck that same day.
This experience seems to be an exception, however, not the norm. According to the Society for Human Resources Management, approximately two-thirds of employers have some sort of severance policy in place.
Although they are not required to offer them, when employers do make severance agreements with employees, they are obligated to uphold them.
4 Key Steps to Take If Your Employer Doesn’t Honor a Severance Agreement
If you had a severance agreement with your employer — or if your employer had a severance policy in place — and your employer now refuses to honor it, it’s important to take prompt action. The following steps can help you diagnose the situation and determine what course of action you should pursue:
1. Read the Agreement or Policy
Your first step should be to review the severance policy or agreement and decide whether your employer must follow it. The help of an experienced employment law attorney can be crucial here. During your review, you are looking for any reason why the employer might have decided it was within their power to refuse the agreement.
For example, suppose that your severance agreement contained a clause releasing the employer from the agreement if you were terminated for a certain cause. If you recall your employer telling you that you were being terminated for misconduct, a law violation, or some other cause, then the next step may be to challenge that conclusion.
2. Speak With Your Employer About the Agreement
Try to determine why your employer is refusing to honor your severance agreement. Depending on your relationship with your employer, it can be helpful to have an attorney seek this information on your behalf. If you do talk to your employer yourself, it is advisable to do so in writing so that a record of their response is made.
Give your employer reasonable time to respond, but do not wait indefinitely. If your employer has not responded within a week or two, you may send a follow-up communication demanding a response within the next seven to ten days. If you still do not have an answer, proceed with the next step after such time.
3. Demand That Your Employer Honor the Severance Agreement
At this point, you should have spoken with an employment law attorney and, preferably, retained one to represent you. If you have read the agreement and still believe you are entitled to the benefits of the severance agreement, then it may be time to make a formal demand of your employer.
Your demand letter should be succinct. Remind your employer of the severance agreement and why you believe you are entitled to its benefits. Give your employer a deadline, such as seven days from the date of the demand letter or by the next scheduled payday.
4. File a Claim Against Your Employer
If all else has failed and your employer still refuses to honor your severance agreement, you may have to proceed with filing a lawsuit. You do not want to unnecessarily delay this step, as you only have a limited amount of time to file a lawsuit against your employer.
Consult with an experienced lawyer and get their assistance in preparing and filing your case with the appropriate court. Keep in mind that filing a case does not necessarily mean your case will go to trial. You and your employer may decide to reach a suitable settlement before your case proceeds to trial.
However, filing your lawsuit does more than simply protect your legal rights. It also communicates to your employer that you are serious about your demand that your severance agreement be honored.
When to Speak to an Arizona Employment Lawyer
If your employer has not honored your severance agreement, involving an employment lawyer sooner rather than later can make a significant difference in the outcome of your dispute.
Our knowledgeable team at Ernst, Brown & Draper can devote our firm’s skills and resources to protecting your legal rights and getting you the severance benefits you deserve.
Contact us to schedule a consultation with a seasoned Arizona employment law attorney today.
