Connecticut Severance Negotiation Lawyer

Our Connecticut Employment Lawyers Negotiate, Draft, and Review Severance Agreements

At Carey & Associates, P.C., our Connecticut severance negotiation attorneys are experienced, solutions-focused advocates for employees. Leaving a job is hard—even when it is under relatively good circumstances. Losing a job unexpectedly can put a serious financial strain on a family. A severance package can help to ease the transition. You have the right to negotiate for fair severance pay. If you have any specific questions or concerns about severance negotiations, we are here to help. Contact our Connecticut employment lawyers today for a confidential consultation.

WHAT IS SEVERANCE NEGOTIATION?

Carey & Associates, P.C. provides comprehensive severance representation to executives and employees. Severance agreement involves understanding each party’s respective interests, expectations, legal positions, and financial incentives. This is a business transaction and should not be confused with a legal battle. The end result is a complete waiver and release of all claims up to the date of the executed severance agreement. Severance negotiation involves facets of contract law, compensation law, employment law, alternative dispute resolution, and negotiation methods between you and your former employer. These complex issues make it important for you to have a Connecticut severance package lawyer in your corner.

HOW CAN I GET A FAIR SEVERANCE PACKAGE IN CONNECTICUT?

In some cases, a well-drafted written employment contract provides for the event of separation and severance payment from your former employer. The employment or change in control agreement often includes conditions that may or may not lead to a severance compensation benefit, depending on performance and change in control events. In other cases, no written contract was ratified at the start of employment, typically due to a lack of negotiating leverage. Generally, in the absence of employment contracts and change in control agreements, the client must rely upon potential, direct, or implied promises to bootstrap a contractual obligation to pay severance compensation. In addition, there may exist violations of state and federal laws that provide the exact leverage to bargain for a fair and reasonable severance benefit.

SEVERANCE NEGOTIATIONS REQUIRE PERSONALIZED REPRESENTATION

The level of severance is variable and is a function of the company’s policies, the level of the position, performance, potential liability, publicity, and previous agreements. The time frame for negotiating severance compensation is quick. The negotiation process should take no longer than one to three weeks. Any negotiation that lasts longer is going to lead to litigation. This is a hyper-intensive process that requires a great deal of time and energy by both the client and the attorney. You need a Connecticut employment law attorney who is willing to devote time and resources to your specific severance agreement negotiation.

THREE TIPS FOR PREPARING TO NEGOTIATE A SEVERANCE PACKAGE

Are you getting ready to negotiate severance? It can be challenging. Proper preparation can make the difference. Here are three tips to help you prepare for severance negotiations in Connecticut: 

1. Understand Your Value, Your Contributions, and Any Potential Claims: Before entering negotiations, prepare a detailed record of your contributions to the company, including any successes, achievements, and recognitions you have received. The documentation can serve as a powerful tool in highlighting your value to the employer—strengthening your position in negotiations. You should also consider any potential legal claims that you may have against your employer. As part of severance, you will generally be required to waive the right to pursue these claims—you must be properly compensated for doing so. 
2. Do Your Research (Consider Speaking to Current/Former Co-Workers): Investigate the typical severance packages offered in your industry—especially those provided by similar companies for positions akin to yours. If applicable, you may want to consider having a conversation with trusted current/former co-workers who have also gone (or are going) through severance negotiations. The more information you have access to, the better positioned that you will be to negotiate for more favorable severance terms. 
3. Consult with a Legal Professional: As severance negotiations are deeply complicated and highly case-specific, it is also best to consult with an experienced Connecticut employment law attorney. Your lawyer can offer insights into your rights and help you take action to obtain the best possible package given your specific circumstances. In some cases, a creative approach—such as getting continued health coverage or a favorable letter of recommendation from a supervisor—can be a key part of a severance agreement. 

LOOK FOR RESTRICTIVE COVENANTS BEFORE SIGNING A SEVERANCE AGREEMENT

Before signing any severance agreement in Connecticut, an employee should carefully read and review the document. A key thing to look out for: restrictive covenants. Broadly speaking, a restrictive covenant is a contract clause in a contract that imposes some type of limitation/obligation on the party signing it. In most cases, restrictive covenants in severance deals require employees to refrain from doing something in order to protect the employer. Some restrictions that may be included in a proposed severance agreement in Connecticut include: 

• Non-Disparagement Clause: A non-disparagement clause prohibits the signee (employee) from making negative statements about his or her former employer, its employees, products, or services. Violating a non-disparagement clause can lead to serious adverse consequences. 
• Non-Solicitation Clause: A severance agreement that contains this type of clause prevents the employee from soliciting the employer’s clients, customers, or other employees for a certain period following their departure.
• Confidentiality Clause: A confidentiality provision requires the employee to keep proprietary information, trade secrets, and other confidential data of the employer private—even after the end of their employment. 
• Non-Compete Agreement: A non-compete agreement restricts an employee from working for competitors or, potentially, starting a competing business within a certain geographic area and time frame. Non-competes should be reasonably narrow in scope. 

Note: There are currently federal court cases pending that could have a big impact on the future of non-compete agreements. In 2024, the Federal Trade Commission (FTC) finalized a rule that bans most non-competes in the United States. However, in August of 2024, a federal judge blocked that regulation from taking effect. Our firm is closely monitoring this issue. 

Experienced Legal Representation To Make The Complex Simple

Severance negotiations are complicated. You do not have to go through the process alone. We can facilitate the negotiation process by directly bargaining with the company or advising the client behind the scenes. The latter approach is used when the client possesses a favorable and amicable professional relationship with the company. Direct client negotiations also present the possibility of inadequate objectivity. The client must discharge the emotional and political baggage, or immediately transition legal counsel directly into the negotiation.

Our managing partner Mark Carey is an employment attorney with nearly three decades of experience helping clients. If you did not receive a severance package or feel your severance agreement package was inadequate, please call the employment attorneys at Carey & Associates, P.C. today at  (203) 255-4150 to discuss how we can help you get the severance pay you deserve. We help employees with their severance packages in Connecticut. We are here to help.

Severance Agreements In Connecticut: Frequently Asked Questions (FAQS)

Does Connecticut Law Guarantee a Severance Package?

No. Neither the federal Fair Labor Standards Act (FLSA) nor Connecticut state labor law guarantees severance pay to employees. Unless there is a written company policy or written employment contract in place, your employer is not required by law to provide a severance package. With that being said, severance pay is still relatively common. Most severance agreements are offered at the discretion of the employer and are often used to create a smoother transition for both the departing employee and the business/organization. 

What is the Average Amount of Severance Pay?

There is no true “average” severance amount in Connecticut. The value of a severance package can vary dramatically based on a wide range of different factors—from how long an employee worked at a company to the terms and conditions under which they are leaving the organization. 

With that being said, a common formula used in many companies is to offer one to two weeks of pay for each year of service. Still, this can be more or less depending on the employer’s policies and the negotiation outcome between the employer and employee. 

Should I Sign a Severance Agreement?

Maybe—but you should not sign until you are confident that you understand the terms of the agreement and you know that you are getting a fair deal. Before signing a severance agreement, it is crucial to thoroughly review the document with an experienced Connecticut employment law attorney. Remember, signing the agreement typically means you are waiving certain rights—most importantly, the right to sue your employer for discrimination, a wage and hour violation, and/or a wrongful termination. You have the right to negotiate for a more favorable severance package. 

Can I Negotiate the Terms of My Severance Agreement?

Yes, absolutely. You can and should negotiate the terms of a proposed severance agreement. When making an initial severance offer, many employers in Connecticut expect some negotiation from the employee. Employers may be open to adjusting various aspects of the agreement—from the amount of severance pay to continuation of benefits to the scope of any restrictive covenants like non-compete clauses. You do not have to handle the process on your own. A top-tier Connecticut employment law attorney can represent you in settlement negotiations. 

Can an Employer Rush Me Into Signing a Severance Package?
An employer cannot force you to sign a severance agreement on the spot. You are never required to sign a severance package. Further, older workers—those 40 years of age and above—may actually have legally protected time to review a proposed severance agreement. Older Workers Benefit Protection Act (OWBPA), employees aged 40 and over must be given at least 21 days to consider the agreement and an additional 7 days to revoke it after signing.

What is a Release of Claims (Common Term in Severance Agreement)?

Broadly defined, a release of claims is a common clause in severance agreements where the departing employee agrees to waive or release the employer from potential legal claims—such as discrimination, harassment, or wrongful termination lawsuits. It is a legally binding term that prevents you from pursuing any legal action related to your employment once it is signed. Most severance agreements require employees to give up their right to sue the employer. 

What Are the Tax Implications of Receiving a Severance Package?

Receiving a severance package can have significant tax implications that need to be carefully 

considered. Severance payments are treated as income, and therefore subject to federal, state, and sometimes local income taxes. A lawyer can help you structure a severance package properly to avoid any unfavorable tax consequences. 

Does Severance Pay Impact Unemployment Benefits in Connecticut?

Yes. In 2021, Connecticut lawmakers began a process of changing state regulations regarding severance pay and unemployment benefits. Severance pay is considered remuneration—and it can delay or reduce the amount of unemployment compensation you receive. How exactly it will impact your unemployment depends on the amount of severance pay that you are receiving. A Connecticut severance agreement lawyer can help you negotiate a severance package in the most favorable manner for your specific situation.

How Can a Connecticut Severance Agreement Lawyer Help 

A Connecticut severance agreement lawyer can provide crucial guidance by reviewing the terms of the agreement to ensure they are legally sound and beneficial to you. Along with other things, your lawyer can help negotiate better terms, identify potential legal issues you might waive, and explain the complex legal language often found in these agreements. 

The Bottom Line: Your Connecticut severance attorney will review your agreement, answer your questions, ensure your rights are protected, and help you negotiate for better terms. 

Contact Our Connecticut Severance Agreement Lawyer

At Carey & Associates, P.C., our Connecticut employment lawyer has experience negotiating, drafting, and reviewing severance agreements. If you have any specific questions or concerns about a severance package, we are here as the legal resource that you can trust. Call us at (203) 255-4150 or contact us online for a completely confidential initial consultation. With an office in Southport, we represent employees throughout the surrounding region in Connecticut.

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