Kathleen Cahill Law
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For a Baltimore area employee, being presented with a severance agreement and having to decide, often within a matter of days, whether to sign, constitutes an important career crossroads. Whether your employer proposed the severance to serve its own interests, or you are the one who opened that conversation because you are ready to transition, it is invaluable to have an experienced Baltimore severance agreement lawyer review the terms and negotiate on your behalf before you commit. As your employment lawyer, I focus exclusively on your side of the table in striving for terms that fit and serve your future.
A severance agreement is a contract between you and your former employer intended to close out every open question about your employment and your departure — final pay, the disposition of your benefits, whether you can bring future claims, and what obligations, if any, continue after the separation. Think of it as a specialized employment contract, negotiated at the end of the relationship rather than at the beginning. Under applicable employment and contract law, it is final and binding: once you sign, the agreement is set and enforceable, with very limited to no room to revisit it later. That is why it needs to be right from the outset.
In Baltimore, severance offers show up most often after a reduction in force, a restructuring, or a company acquisition or merger — common events in these dynamic times across the city’s healthcare systems, financial institutions, corporate offices, and elsewhere. The circumstances behind the offer can inform as to what is actually negotiable, so understanding why you were offered severance in the first place is useful to the analysis. A layoff tied to a broader restructuring, for instance, might present a better opportunity to negotiate than a severance offer arising out of an individual performance issue.
Signing is ultimately your decision, but a well-negotiated severance agreement can be of considerable benefit to your future — as to financial security, clarity, and a clean wrap-up, in one controlling document. In treating the first offer as the final one, you may be missing out on achievable added value. An experienced Baltimore severance attorney can tell you whether the agreement presented to you is a solid gain or a potential net loss, and can make sure any favorable terms you secure are truly enforceable if your former employer doesn’t follow through.
We also can assess your leverage based on the bigger picture. If your separation feels more like a wrongful termination than a legitimate layoff, or if pressing for unpaid overtime led to your exit, a severance agreement’s release language could sign away claims worth far more than the standard or formulaic severance. A careful review before you sign protects you either way. A severance agreement is an important legal document which you will benefit from understanding before signing.
A severance agreement is drafted by the employer’s lawyers, for the employer’s benefit, and that can present hidden risk to you: vague release language, compensation that sounds better than it actually is, and expansive restrictive covenants tucked in alongside terms that seem purely administrative. When I review your agreement, I go through it line by line and translate the legal language into what it actually means for your life, so that nothing gets signed away unknowingly. These offers typically come with a short deadline, so getting legal representation quickly is key.
A review isn’t just about catching red flags — it is also about confirming what’s actually good in the offer, so you know what’s worth protecting during negotiation and what’s still open to improvement. I compare the terms against what I know from experience is typical for someone in your role, your industry, and your tenure, so that you are negotiating from an informed position for the best terms possible.
An initial severance offer is a starting point, and not necessarily the employer’s final number. Employers build these packages to serve their own interests first, and they strive to spend as little as possible to get your signature and release of claims. But they also generally expect at least some pushback or negotiation. I help clients across Baltimore achieve terms reflective of what they actually contributed — considering tenure, role, industry, and the circumstances of the separation. Every situation is different, and I work closely and tenaciously to make sure your interests, not your employer’s convenience or bottom line, drive the negotiation.
Negotiation isn’t limited to the dollar figure, either. Tightening the timeline for a payout, improving the terms of a non-compete or non-solicitation clause, or securing a meaningful reference can matter just as much as the severance number, depending on what you need most embarking on your next chapter.
Severance compensation is about more than a single lump-sum number. A complete severance agreement should address continuation of your salary or a lump sum payout; the treatment of your bonuses, including the potential for a pro-rated payment; guaranteeing commissions earned and payment for pipeline commissions; continuation of COBRA coverage to continue your health insurance; the treatment of any equity; 401(k) contributions; or any other financial benefits tied to your job. It is also worth knowing the impact of severance on your eligibility for unemployment benefits, though the details can depend on how the separation occurred and the agreement is structured. Outplacement assistance and extended use or retention of company equipment are also worth putting on the table. None of these are guaranteed in a standard offer, but they are often available if you ask, especially when the separation is not arising out of an individual performance issue or alleged misconduct.
Severance agreements routinely bundle in confidentiality, non-disparagement, and restrictive covenant provisions alongside the financial terms. It is important to slow down and resist focusing solely on the severance amount and skimming past the remainder of the terms. Every severance agreement will also ask you to release a broad range of legal claims — including, potentially, wrongful termination or wage claims entitling you to unpaid overtime that you may not have known you had. That release is permanent, with few exceptions, so it deserves a careful read and analysis of what claims you might have before you sign.
Severance offers come with real deadlines, and they are not generous. Employees 40 and older are legally entitled to 21, or sometimes 45, days to review the agreement and consult a lawyer before signing. But younger workers don’t have that protection and employers can set a much shorter window. Whatever your deadline is, getting a Baltimore attorney involved immediately gives you the best chance of understanding the document and negotiating changes from an informed position before time runs out. Waiting until the final few days rarely works in your favor — it leaves little room to gather documentation, compare your offer to what similarly situated employees received, or push back on any terms that don’t hold up. So reach out as soon as you are presented an agreement, or even beforehand if you know your circumstances are heading in that direction.
Whether you have just been handed a severance agreement or you are the one considering initiating an exit conversation with your employer, I can help you plan, strategize, and get it done right. As an experienced Baltimore severance agreement lawyer, I bring the same tenacious advocacy to each individual’s circumstances, and together we can analyze every consideration to build a negotiating strategy that works optimally for you. Contact me today, and let’s make sure your exit reflects everything you have earned and protects what you want to do next.
Kathleen Cahill Law
N/a