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As employment law constantly changes, the attorneys at Bean, Kinney & Korman stay up to date on the law as it develops. Our blog topics focus on those changes and what you need to know about them, ranging from severance agreements and the FLSA to social media in the workplace and recent court decisions. If you are interested in having us cover a specific topic, please let us know.

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Posts from September 2013.
September 5, 2013
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Employers frequently use severance agreements when terminating an employee or when an employee resigns with the hopes of reducing potential liability.  In our practice, we often advise employers to offer severance pay that is memorialized in an agreement containing a general release, covenant not to sue and often indicates that the employee is resigning.  Since an employee has no legal entitlement to severance pay, the majority of the time, he or she accepts the offer and typically the employer does not hear anything else from the employee.  However, this is not the case with all employees and it is imperative employers understand the benefits and downsides to severance agreements and how the EEOC and Virginia Unemployment Commission view these agreements.

In practice, severance agreements significantly reduce a company’s liability exposure by minimizing the risk of litigation and administrative proceedings.  Offering pay that an employee is not already entitled to will often placate an otherwise disgruntled employee by providing additional financial assistance.   Typically a severance agreement will offer severance pay, include a confidentiality and non-disparagement clause, a general release by the employee of all claims and often indicate that the employee is resigning from his or her employment.