If you want assistance preparing or reviewing a separation agreement in Phoenix, you need the help of a lawyer. It is important to seek legal advice before you sign any contract. For any questions about legal agreements, you can turn to our trusted Phoenix separation agreement lawyers.
Generally speaking, a separation agreement will outline terms to end an employment relationship. A separation agreement should be reasonable and fair to both parties. But, sometimes, separation agreements can be very one-sided, so you may need help coming to reasonable terms. At Houk Employment Attorneys, we can help ensure your separation agreement is fair.
Call our Phoenix, AZ office today for a consultation at (480) 569-2377.
How Houk Employment Attorneys Can Help With a Separation Agreement in Phoenix
In Phoenix, Arizona, an important consideration for a separation agreement is whether the employee is waiving their right to sue their employer. Employers may offer a severance package to a departing employee but may ask them to waive their rights to sue the employer.
Separation agreements are contracts that play a significant role in how an employee will leave a company. An agreement can alleviate the emotional burden of an employment termination. This can provide each party with clear direction moving forward.
If you choose to work with the seasoned attorneys at Houk Employment Attorneys, we will make sure that we review:
- Your entitlement to workers’ compensation
- Any potential employment law claims
- Any potential employment discrimination claims
- Any interest, costs, fees, or other expenses you may be owed
- Any claims you may have as provided by the Equal Employment Opportunity Commission (EEOC)
With over 45 years of experience and millions won for our clients, our firm has the expertise and the skills to help you with your separation agreement. Call our Phoenix employment law attorneys today for a consultation.
Severance Package Consideration in a Separation Agreement
If you are drafting a separation agreement, you must consider many things. These are common factors that are worth considering:
Severance Pay
One of the first questions you may have when preparing a separation agreement is how much severance pay will be offered. This is a critical question for most employers because it has a big impact on the financial security of the departing employee. Calculating severance pay may not always be a completely straightforward activity.
For instance, a departing employee may have to consider their employer’s tax implications. A tax consultant can explain the difference between a lump-sum payment versus periodic payments.
Continuation of Employment Benefits
You should also think about whether employment benefits should continue after separation. An employee may want to request that your benefits continue, and their employer may decide to continue offering certain benefits. Benefits may include health, dental, vision, life, or disability insurance. A provision protecting these benefits may be included in a separation agreement.
Non-Compete Agreements
An employer may want to prevent an employee from working for a competitor. To prevent competition, an employer may include a non-compete clause in the separation agreement. A non-compete clause must enforce a specific timeframe and location.
Non-compete clauses help companies protect their industry secrets, trade secrets, and business interests. This can be an essential component of any separation agreement. Non-compete clauses must be reasonable in geography, scope, and duration.
To make sure that you are protecting the rights of both employer and employee, speak with a Phoenix separation agreement lawyer. At Houk Employment Attorneys we can help you take the guesswork out of employment law issues. Let us help you protect your legal interests and guide you on the right steps to take.
How to Protect the Rights and Interests of Employees in a Separation Agreement
Employee separation agreements must align with Arizona’s employment laws and federal regulations. This compliance ensures everyone’s rights are protected. One critical element is ensuring compliance with the Fair Labor Standards Act (FLSA). This law sets standards for minimum wage, overtime, and other wage issues. An employer who fails to meet these standards might face legal challenges.
You should also consider protecting whistleblowers. Federal laws, like the Sarbanes-Oxley Act and the Dodd-Frank Act, prohibit employers from retaliating against whistleblowers. A whistleblower is an employee who reports illegal or unethical behavior. Any separation agreement must respect these protections.
Arizona employers should also be mindful of anti-discrimination laws. Separation agreements must not inadvertently waive an employee’s right to pursue a discrimination claim. A discrimination claim may be sought under Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), or the Arizona Civil Rights Act.
By ensuring that separation agreements are clear, compliant, and balanced, employers can reduce their legal risks. Get in touch with our Phoenix separation agreement lawyers today to make sure your legal risks are at a minimum.
How Can I Protect Myself in a Separation Agreement?
A well-crafted separation agreement is essential for avoiding disputes and litigation. To create a comprehensive document, employers in Phoenix should consider including the following provisions:
- Reason for Termination: Clearly state the reason for the employee’s departure. Note whether it is a voluntary resignation, layoff, or termination for cause.
- Severance Package: Detail any financial compensation provided. Discuss terms for a severance package, benefits, and unused vacation time.
- Confidentiality and Non-disparagement: Make sure the employee agrees to keep company information confidential. You may also require the employee to avoid speaking negatively about the company, to the extent allowed by the law.
- Return of Company Property: Include a provision requiring the employee to return company property. This may include laptops, cell phones, or confidential trade secrets.
- Non-Compete or Non-Solicitation Clauses: You may consider including a restriction to prevent the employee from working for competitors and/or from soliciting clients.
- Arbitration or Mediation Clauses: To avoid future litigation, you may require that any future disagreement be resolved through arbitration or mediation.
- Waiver of Claims: A separation agreement should include a release of claims. You want to ensure that an employee waives his or her right to bring a lawsuit related to the separation.
Using clear and unambiguous language is essential. You want to avoid confusion and potential disputes. Each separation agreement should be tailored to the specific circumstances of the employee and employer. No two situations are identical. If you are in doubt, turn to our Phoenix separation agreement lawyers for help crafting an airtight separation agreement to fit your needs.
Common Separation Agreement Provisions and Protections
At Houk Employment Attorneys, we have helped employers and employees alike. We understand the complexities of employment law and can help you navigate the process. Some of the most frequently asked questions we answer include:
- Can a separation agreement be used for layoffs or only firings? A separation agreement can be used for both firings and layoffs. These agreements provide a clear outline for ending employment relationships.
- Are separation agreements taxable to the employee? Generally, any severance pay or benefits received will be considered taxable.
- Can a separation agreement be signed electronically? Yes, under the Electronic Signatures in Global and National Commerce Act (ESIGN) and Arizona state laws, such an agreement can be signed electronically.
- Can separation agreements be used for contractors and freelancers? Yes, but separation agreements for independent contractors and freelancers will differ from those for employees.
Speak with an experienced separation agreement lawyer at Houk Employment Attorneys to get help answering any questions you have. Give us a call or stop by our office to learn more.
Contact Our Phoenix Separation Agreement Lawyers For Help Today
If you need assistance drafting or reviewing an employment separation agreement in Phoenix, AZ, Houk Employment Attorneys is here to help. Our experienced Phoenix separation agreement lawyers understand Arizona employment laws.
We can guide you through the process to ensure your agreement is fair and legally sound. Contact us today to get started and make sure your rights are protected.
Visit Our Employment Law Office Located in Phoenix, AZ
Houk Employment Attorneys
1850 N Central Ave Suite 2010, Phoenix, AZ 85004
(480) 569-2377
