A severance agreement is a release to be signed by an employee whose employment is separated in exchange for payment of money (or other consideration). This can be an effective tool to protect a company from future lawsuits and other risks. Below we discuss legal requirements when using a severance agreement as well as specific provisions that should be included in the agreement to protect the organization. Legal Requirements When Presenting A Severance Agreement Whenever severance agreements are used there are certain legal requirements that must be followed. As a preliminary matter, in order to be enforceable, the employee must... READ MORE

In an at-will employment state like California, you can, in theory, fire anyone at any time. However, state and federal legislation have particular exceptions to prohibit employers from firing someone for any reason. For instance, you cannot fire someone for refusing to do something illegal, or for a discriminatory reason (race, gender, religion, sexual orientation, pregnancy, and more). If you fire someone for the wrong reason, you can face a wrongful termination lawsuit. Setting Clear Policies on Termination  Your employee handbook is a great place to identify your company policies on discipline and termination. Outline these policies in your handbook,... READ MORE