Work and Employment

Severance Pay: The Complete Guide for Employees

In this comprehensive guide, we explain what is severance pay, how much is severance pay, how does severance pay work, what states require severance pay, and more.

Chelsea Spinos, Writer
Immigration lawyer at Manifest dressed in glasses and blue shirt

By:

Chelsea Spinos

Chelsea Spinos is a contributing writer for Manifest Law. She covers all topics related to U.S. visas and green cards. She is passionate about helping people navigate their immigration journey with clarity and confidence.

Reviewer:

Timothy Lenahan, Esq.

Timothy R. Lenahan is the lead Employment lawyer at Manifest Law. He has experience with all facets of employment law.

11 min read • Jul 17, 2024

Severance agreement
Severance agreement
Severance agreement

Key takeaways

Severance pay is compensation provided by an employer when an employee leaves the organization, typically during layoffs, downsizing, or mergers.

A typical severance package may include monetary compensation, benefits continuation, payment for unused vacation time, information on retirement benefits, and potentially other forms of support like outplacement services.

Severance pay is often calculated based on length of service, commonly offering one or two weeks of pay for each year worked. Other factors like the employee's role and company policy can also influence the amount.

In the U.S., federal law doesn't require employers to provide severance pay, but some states have laws mandating it under certain circumstances like mass layoffs or plant closures.

Employees often have the opportunity to negotiate their severance package — consult an employment lawyer who may be able to help get you more favorable terms.

After years of dedication and hard work, you suddenly find yourself facing the end of your employment. Whether it's due to company restructuring, a merger, or unexpected circumstances, the prospect of leaving your job can be both daunting and overwhelming. In this moment of uncertainty, one phrase often comes to mind: severance pay.


But what exactly is severance pay? How does it work, and more importantly, what does it mean for you and your financial future? Whether you're currently employed and want to be prepared, or you're facing imminent job loss, understanding severance pay is crucial for navigating your career transitions with confidence.


In this comprehensive guide, we'll demystify severance pay, breaking down everything from what it is to how it’s calculated. So, let's dive into everything you need to know about severance pay as an employee.

Severance pay
Severance pay
Severance pay

What is severance pay?

What is severance pay?

Severance pay is the compensation you receive from your employer when you leave the organization. Severance pay is designed to help ease your financial transition, providing you with support and stability as you move forward in your career.


Typically, severance pay is given during company restructuring, such as layoffs, downsizing, or mergers, where you aren’t at fault for your termination. However, you might also receive severance pay if you resign or are dismissed, depending on your company's policies.


While severance pay is common, it's not mandatory everywhere. For instance, in the U.S., federal law does not require employers to provide severance pay. The Fair Labor Standards Act (FLSA) allows employers to set their own terms regarding severance.

Person handing someone else money
Person handing someone else money
Person handing someone else money

Key components of severance pay

Key components of severance pay

A severance pay package typically includes several components designed to support you financially and professionally as you transition out of your current job.


What’s included in a severance package can vary widely between organizations. Factors such as business size, industry, region, and compensation structure can all influence the severance package given to employees (if severance pay is given).


Here’s what is usually included in a severance pay package:

In the context of sexual harassment in the workplace, quid pro quo harassment is defined by several characteristics. These include…


  • Conditioned benefits: An employee is offered job benefits — like promotions, raises, or favorable assignments — in exchange for sexual favors. Conversely, an employee might face negative consequences — like demotion, dismissal, or retaliation — for rejecting sexual advances. Sexual advances does not mean sex, but could mean going out on dates, kisses and romantic touching.

  • Power imbalance: Typically, quid pro quo harassment involves a person in a position of authority — such as a supervisor or manager — who has the power to influence the victim.

  • Direct impact: This form of sexual harassment in the workplace directly affects the employee’s job status, benefits, and ability to do their work well.


Do any of these characteristics fit a scenario you’re experiencing at work? If so, don’t hesitate to reach out to our team at Manifest Law. You can book a free consultation where we will listen to your story, assess the strength of your case, and get you the legal support you may need.

Monetary Compensation

Benefits Continuation

Unused Vacation or Paid Time Off (PTO)

Retirement Benefits

Stock Options or Equity

Non-Compete and Confidentiality Agreements

Other Support

This is the core component of severance pay, often calculated based on your length of service.

For example, you might receive one or two weeks of pay for each year you’ve worked at the company.

Many packages extend your health insurance and other benefits for a certain period. This is often through COBRA in the U.S., which allows you to keep your employer-provided health insurance temporarily

You may be paid for any unused vacation days or PTO you’ve accrued.

Information on how your departure affects your retirement plan, such as 401(k) or pension plans, and whether you can retain any employer contributions.

If you have stock options or equity in the company, the severance package should outline what happens to those assets.

Your severance package may include agreements that restrict your ability to work for competitors or disclose company information for a specified period.

Additional forms of support, such as training programs, educational assistance, or even financial planning services.

Manifest Law©️. Learn more on www.manifestlaw.com

Man excited holding personal items after leaving his job
Man excited holding personal items after leaving his job
Man excited holding personal items after leaving his job

How does severance pay work?

How does severance pay work?

When an employer decides to offer severance pay, they usually present the employee with a severance package. Your employer will give you a severance pay agreement to sign, which is a legal document that spells out what you’ll receive and any conditions you need to agree to. 

Often, the severance pay agreement includes a release of claims, meaning you agree not to sue your employer for issues related to your job or termination. It might also have non-compete and confidentiality clauses, which limit your ability to work for competitors or share company secrets. By signing the agreement, you accept the terms of the severance package and agree to its conditions.

Please note that a severance agreement is typically an offer of something of value to you, like money, in exchange for you agreeing to waive certain legal rights. This is a legal document, and it is important that you fully understand what you are signing before you sign it.


It’s important to carefully review the severance agreement to understand the timing and conditions of the severance pay being offered. We highly advise you to consult an employment lawyer who can review the agreement and help you negotiate a higher severance pay or better terms. Book a free call with Manifest Law to learn more.

In the context of sexual harassment in the workplace, quid pro quo harassment is defined by several characteristics. These include…


  • Conditioned benefits: An employee is offered job benefits — like promotions, raises, or favorable assignments — in exchange for sexual favors. Conversely, an employee might face negative consequences — like demotion, dismissal, or retaliation — for rejecting sexual advances. Sexual advances does not mean sex, but could mean going out on dates, kisses and romantic touching.

  • Power imbalance: Typically, quid pro quo harassment involves a person in a position of authority — such as a supervisor or manager — who has the power to influence the victim.

  • Direct impact: This form of sexual harassment in the workplace directly affects the employee’s job status, benefits, and ability to do their work well.


Do any of these characteristics fit a scenario you’re experiencing at work? If so, don’t hesitate to reach out to our team at Manifest Law. You can book a free consultation where we will listen to your story, assess the strength of your case, and get you the legal support you may need.

Severance pay
Severance pay
Severance pay

How long does it take to get severance pay?

How long does it take to get severance pay?

Severance pay is typically paid to the employee shortly after their employment ends, but the exact timing can vary based on the employer's policies and the terms outlined in the severance agreement.

There are a few different ways severance pay may be distributed:

In the context of sexual harassment in the workplace, quid pro quo harassment is defined by several characteristics. These include…


  • Conditioned benefits: An employee is offered job benefits — like promotions, raises, or favorable assignments — in exchange for sexual favors. Conversely, an employee might face negative consequences — like demotion, dismissal, or retaliation — for rejecting sexual advances. Sexual advances does not mean sex, but could mean going out on dates, kisses and romantic touching.

  • Power imbalance: Typically, quid pro quo harassment involves a person in a position of authority — such as a supervisor or manager — who has the power to influence the victim.

  • Direct impact: This form of sexual harassment in the workplace directly affects the employee’s job status, benefits, and ability to do their work well.


Do any of these characteristics fit a scenario you’re experiencing at work? If so, don’t hesitate to reach out to our team at Manifest Law. You can book a free consultation where we will listen to your story, assess the strength of your case, and get you the legal support you may need.

Scenario

Lump sum payment

Installments

On the employee’s last day of work

After signing the severance agreement

Specific dates agreed upon

When is severance pay due?

Many employers opt to provide severance pay as a one-time lump sum payment. In this case, the payment is usually made within a few weeks after your last day of work.

Some employers choose to spread the severance pay over a period of time, similar to how regular paychecks are distributed. This can be on a bi-weekly, monthly, or another regular schedule. This method can extend the financial support over a longer period.

In some cases, the severance pay might be included in your final paycheck, which is given on the last day or shortly thereafter.

Often, the severance payment is contingent upon the employee signing a severance agreement. Once the agreement is signed and any required waiting period (sometimes referred to as a "revocation period") has passed, the payment will be made.

The severance agreement might specify exact dates or conditions for payment. For instance, the agreement could outline that the payment will be made 30 days after the termination date.

Manifest Law©️. Learn more on www.manifestlaw.com

Request free consultation with Manifest Law today

Request free consultation
with Manifest Law today

Reach out to get an evaluation the strength of your case.

Blue umbrella covered stacks of coins
Blue umbrella covered stacks of coins
Blue umbrella covered stacks of coins

How much is severance pay?

How much is severance pay?

The amount of severance pay you receive can vary based on several factors. On average, employees might receive severance pay equivalent to a few weeks to a couple of months of salary, depending on the circumstances of their departure and company policies. 

It's important to note that exact amounts for severance pay can vary widely.

In the context of sexual harassment in the workplace, quid pro quo harassment is defined by several characteristics. These include…


  • Conditioned benefits: An employee is offered job benefits — like promotions, raises, or favorable assignments — in exchange for sexual favors. Conversely, an employee might face negative consequences — like demotion, dismissal, or retaliation — for rejecting sexual advances. Sexual advances does not mean sex, but could mean going out on dates, kisses and romantic touching.

  • Power imbalance: Typically, quid pro quo harassment involves a person in a position of authority — such as a supervisor or manager — who has the power to influence the victim.

  • Direct impact: This form of sexual harassment in the workplace directly affects the employee’s job status, benefits, and ability to do their work well.


Do any of these characteristics fit a scenario you’re experiencing at work? If so, don’t hesitate to reach out to our team at Manifest Law. You can book a free consultation where we will listen to your story, assess the strength of your case, and get you the legal support you may need.

Man looking at laptop and holding paper and pencil
Man looking at laptop and holding paper and pencil
Man looking at laptop and holding paper and pencil

How is severance pay calculated?

How is severance pay calculated?

The amount of severance pay can vary widely depending on several factors, including the company’s policies, how long you’ve been working at the company, and your position within the company. 

Here are the key factors that typically determine how much severance pay you may receive:


  • Length of Service: A common way companies calculate severance pay is by giving one or two weeks of pay for each year you’ve worked there. For example, if you’ve been with the company for five years, you might receive between 5 to 10 weeks of pay.

  • Your Role: If you hold a higher position or are in an executive role, you might get a larger severance package compared to entry-level employees. This could mean more weeks of pay or additional benefits.

  • Company Policy: Some companies have a standard severance package for all employees, while others might negotiate severance pay on an individual basis. Check your employee handbook or ask HR about your company’s specific policies.

  • Employment Contract: If you have an employment contract, it might already specify how much severance pay you’ll get if you’re let go. Be sure to review any agreements you’ve signed.

Let’s take a closer look at a few example scenarios of severance pay:

In the context of sexual harassment in the workplace, quid pro quo harassment is defined by several characteristics. These include…


  • Conditioned benefits: An employee is offered job benefits — like promotions, raises, or favorable assignments — in exchange for sexual favors. Conversely, an employee might face negative consequences — like demotion, dismissal, or retaliation — for rejecting sexual advances. Sexual advances does not mean sex, but could mean going out on dates, kisses and romantic touching.

  • Power imbalance: Typically, quid pro quo harassment involves a person in a position of authority — such as a supervisor or manager — who has the power to influence the victim.

  • Direct impact: This form of sexual harassment in the workplace directly affects the employee’s job status, benefits, and ability to do their work well.


Do any of these characteristics fit a scenario you’re experiencing at work? If so, don’t hesitate to reach out to our team at Manifest Law. You can book a free consultation where we will listen to your story, assess the strength of your case, and get you the legal support you may need.

Chelsea Spinos, Writer

Emily, project manager

Emily, project manager

Emily has been working as a project manager at a manufacturing company for 15 years. Due to economic challenges, the company decides to downsize and Emily’s position is eliminated. 


The company offers Emily a comprehensive severance package that includes:

  • Monetary Pay: Emily's annual salary is $90,000. The company's severance policy offers one month of salary for each year of service. Therefore, Emily receives a severance payment of $112,500 ($90,000 / 12 months = $7,500 per month x 15 years).

  • Benefits Continuation: The severance package includes continuation of Emily's health insurance coverage for herself and her dependents for a period of 12 months following her termination date. This ensures that Emily and her family maintain their healthcare coverage during the transition period.

  • Outplacement Services: The company provides Emily with outplacement services, including career counseling, resume assistance, and job search workshops. This support is designed to help Emily find new employment quickly and smoothly.

  • Retirement Plan: Emily's severance package outlines how her retirement benefits will be handled. She is informed that she will retain all vested contributions to her 401(k) plan and will receive information on rollover options and accessing her retirement funds.

Manifest Law©️. Learn more on www.manifestlaw.com

Chelsea Spinos, Writer

Jason, senior software engineer

Jason, senior software engineer

Jason has been a senior software engineer at a tech startup for 8 years. The startup recently merged with a larger tech corporation, and during the integration process, Jason's role is identified as redundant. 


The company offers Jason a comprehensive severance package that includes:


  • Monetary Pay: Jason's annual salary is $120,000. The severance policy at the company provides two weeks of pay for each year of service. Therefore, Jason receives a severance payment of $30,769 ($120,000 / 52 weeks = $2,307.69 per week x 2 weeks x 8 years).

  • Benefits Continuation: The severance package includes continuation of Jason's health insurance coverage for himself and his family for 6 months following his termination date. This ensures that Jason and his family have healthcare coverage during the transition period.

  • Stock Options: As part of his compensation package, Jason was granted stock options over the years. The severance agreement specifies that Jason will have the option to exercise his vested stock options within 90 days of his termination date, allowing him to retain ownership of the company's shares he accrued during his tenure.

  • Outplacement Services: The company provides Jason with outplacement services, including access to career coaching, resume building workshops, and job placement assistance. These resources are intended to help Jason quickly find new job opportunities in the competitive tech industry.

Manifest Law©️. Learn more on www.manifestlaw.com

Severance pay
Severance pay
Severance pay

Is severance pay required?

Is severance pay required?

In the United States, companies are generally not required by federal law to provide severance pay to all employees upon termination. However, there are specific circumstances and legal considerations that may compel employers to offer severance pay.


  1. State Laws: Some states have laws that mandate severance pay under certain conditions, such as facility closures or large-scale layoffs. These laws vary by state, so it's essential to check with your state’s labor department to understand your rights in such situations.

  2. Employment Contracts and Policies: Employers may be legally obligated to provide severance pay if they have explicitly promised it in an employment contract.. 


While not mandatory, many employers choose to offer severance packages to long-term employees as a gesture of appreciation for their loyalty and contributions. Providing severance can also help mitigate the impact of termination and potentially reduce the likelihood of legal disputes.

In the context of sexual harassment in the workplace, quid pro quo harassment is defined by several characteristics. These include…


  • Conditioned benefits: An employee is offered job benefits — like promotions, raises, or favorable assignments — in exchange for sexual favors. Conversely, an employee might face negative consequences — like demotion, dismissal, or retaliation — for rejecting sexual advances. Sexual advances does not mean sex, but could mean going out on dates, kisses and romantic touching.

  • Power imbalance: Typically, quid pro quo harassment involves a person in a position of authority — such as a supervisor or manager — who has the power to influence the victim.

  • Direct impact: This form of sexual harassment in the workplace directly affects the employee’s job status, benefits, and ability to do their work well.


Do any of these characteristics fit a scenario you’re experiencing at work? If so, don’t hesitate to reach out to our team at Manifest Law. You can book a free consultation where we will listen to your story, assess the strength of your case, and get you the legal support you may need.

Map of United States
Map of United States
Map of United States

What states require severance pay?

What states require severance pay?

As mentioned, neither federal nor state laws mandate severance pay. According to the U.S. Department of Labor,"severance pay is determined by agreement between an employer and an employee (or the employee's representative)," and it is not required under the Fair Labor Standards Act (FLSA).

However, several states in the United States have laws that require employers to provide severance pay under certain circumstances. These laws typically apply in cases of mass layoffs, plant closures, or other significant employment terminations.


The Federal WARN Act involves mass layoffs, and does not require severance pay. Companies can choose to pay off the 60 or 90 days as a severance and fire the person on the spot if they like, but all the laws say is that employers must give notice. If they don't give notice, the employee is required to be paid for the notice period.

In the context of sexual harassment in the workplace, quid pro quo harassment is defined by several characteristics. These include…


  • Conditioned benefits: An employee is offered job benefits — like promotions, raises, or favorable assignments — in exchange for sexual favors. Conversely, an employee might face negative consequences — like demotion, dismissal, or retaliation — for rejecting sexual advances. Sexual advances does not mean sex, but could mean going out on dates, kisses and romantic touching.

  • Power imbalance: Typically, quid pro quo harassment involves a person in a position of authority — such as a supervisor or manager — who has the power to influence the victim.

  • Direct impact: This form of sexual harassment in the workplace directly affects the employee’s job status, benefits, and ability to do their work well.


Do any of these characteristics fit a scenario you’re experiencing at work? If so, don’t hesitate to reach out to our team at Manifest Law. You can book a free consultation where we will listen to your story, assess the strength of your case, and get you the legal support you may need.

State

New Jersey

New York

California

Illinois

Hawaii

Law for severance pay

NJ WARN Act: Requires certain employers to give 60 days advance notice of mass layoffs, plant closings, or transfers resulting in significant job losses. Failure to provide notice may necessitate severance pay equivalent to one week of pay per year of service for affected employees.

NY WARN Act: Employers must give at least 90 days advance notice of mass layoffs, plant closings, or significant employment losses affecting 25 or more employees. Lack of proper notice may require severance pay for affected employees.

CA WARN Act: Mandates covered employers to provide 60 days advance notice of mass layoffs, plant closures, or relocations affecting 50 or more employees within a 30-day period. Failure to provide notice may result in payment of up to 60 days of wages and benefits as severance.

IL WARN Act: Applies to employers with 75 or more full-time employees, requiring 60 days advance notice of mass layoffs, plant closings, or relocations affecting 25 or more full-time employees. Failure to provide notice may necessitate severance pay for affected employees.

Hawaii State Dislocated Workers Act: Requires certain employers to provide 60 days advance notice of mass layoffs, plant closings, or substantial workforce reductions affecting 50 or more employees. Failure to provide notice may require severance pay for affected employees.

Manifest Law©️. Learn more on www.manifestlaw.com

These state laws are designed to provide some level of protection and financial assistance to employees who are impacted by significant employment changes. 

In the context of sexual harassment in the workplace, quid pro quo harassment is defined by several characteristics. These include…


  • Conditioned benefits: An employee is offered job benefits — like promotions, raises, or favorable assignments — in exchange for sexual favors. Conversely, an employee might face negative consequences — like demotion, dismissal, or retaliation — for rejecting sexual advances. Sexual advances does not mean sex, but could mean going out on dates, kisses and romantic touching.

  • Power imbalance: Typically, quid pro quo harassment involves a person in a position of authority — such as a supervisor or manager — who has the power to influence the victim.

  • Direct impact: This form of sexual harassment in the workplace directly affects the employee’s job status, benefits, and ability to do their work well.


Do any of these characteristics fit a scenario you’re experiencing at work? If so, don’t hesitate to reach out to our team at Manifest Law. You can book a free consultation where we will listen to your story, assess the strength of your case, and get you the legal support you may need.

Signing a document
Signing a document
Signing a document

How to ask for severance pay when resigning

How to ask for severance pay when resigning

Whether you’re thinking about leaving your job or facing termination, discussing severance pay can be crucial for managing your finances during the transition. 


Asking for or negotiating severance pay requires careful planning, understanding of company policies, and possibly seeking legal guidance to ensure you’re advocating for fair compensation as you leave your current job. 


Here are some steps and considerations for asking for severance pay when resigning:

Step 1: Assess Your Situation


Before resigning, reflect on why you’re leaving and if there are valid reasons to request severance pay. Instances like unfair treatment, discrimination, or a hostile work environment could strengthen your case.


Step 2: Review Company Policies


Take a look at your employment contract, company handbook, or past cases where severance pay was granted to departing colleagues. This will give you an idea of whether your employer has a history of offering severance in voluntary resignations.


Step 3: Consult an employment lawyer


An employment lawyer can help with your request for severance pay, emphasizing your contributions, tenure, and any circumstances warranting financial support during your transition.


Our team of employment lawyers at Manifest Law can offer legal guidance, review your case, and assist in negotiating a fair severance package.


Step 4: Initiate the Discussion 


Schedule a meeting with your boss or HR representative to discuss your resignation and the possibility of receiving severance pay. 


Step 5: Negotiate Professionally


Stay open to negotiation, considering your employer’s policies and financial constraints. Explore options like extended benefits or assistance with job placement if severance pay isn’t immediately feasible.

In the context of sexual harassment in the workplace, quid pro quo harassment is defined by several characteristics. These include…


  • Conditioned benefits: An employee is offered job benefits — like promotions, raises, or favorable assignments — in exchange for sexual favors. Conversely, an employee might face negative consequences — like demotion, dismissal, or retaliation — for rejecting sexual advances. Sexual advances does not mean sex, but could mean going out on dates, kisses and romantic touching.

  • Power imbalance: Typically, quid pro quo harassment involves a person in a position of authority — such as a supervisor or manager — who has the power to influence the victim.

  • Direct impact: This form of sexual harassment in the workplace directly affects the employee’s job status, benefits, and ability to do their work well.


Do any of these characteristics fit a scenario you’re experiencing at work? If so, don’t hesitate to reach out to our team at Manifest Law. You can book a free consultation where we will listen to your story, assess the strength of your case, and get you the legal support you may need.

💡 Manifest Tip: Hire a severance lawyer who can negotiate on your behalf when it comes to severance pay or any employment-related matters.

Remember, requesting severance pay when resigning is not guaranteed and is typically more common in situations of involuntary termination. Each situation can vary based on company policies, legal considerations, and individual circumstances.

In the context of sexual harassment in the workplace, quid pro quo harassment is defined by several characteristics. These include…


  • Conditioned benefits: An employee is offered job benefits — like promotions, raises, or favorable assignments — in exchange for sexual favors. Conversely, an employee might face negative consequences — like demotion, dismissal, or retaliation — for rejecting sexual advances. Sexual advances does not mean sex, but could mean going out on dates, kisses and romantic touching.

  • Power imbalance: Typically, quid pro quo harassment involves a person in a position of authority — such as a supervisor or manager — who has the power to influence the victim.

  • Direct impact: This form of sexual harassment in the workplace directly affects the employee’s job status, benefits, and ability to do their work well.


Do any of these characteristics fit a scenario you’re experiencing at work? If so, don’t hesitate to reach out to our team at Manifest Law. You can book a free consultation where we will listen to your story, assess the strength of your case, and get you the legal support you may need.

Request free consultation with Manifest Law today

Request free consultation
with Manifest Law today

Reach out to get an evaluation the strength of your case.

Severance agreement
Severance agreement
Severance agreement

Severance agreements negotiated for clients

Severance agreements negotiated for clients

Our team of employment attorneys at Manifest Law have successfully negotiated hundreds of severance agreements for our clients. Take a look at some of their stories below!

In the context of sexual harassment in the workplace, quid pro quo harassment is defined by several characteristics. These include…


  • Conditioned benefits: An employee is offered job benefits — like promotions, raises, or favorable assignments — in exchange for sexual favors. Conversely, an employee might face negative consequences — like demotion, dismissal, or retaliation — for rejecting sexual advances. Sexual advances does not mean sex, but could mean going out on dates, kisses and romantic touching.

  • Power imbalance: Typically, quid pro quo harassment involves a person in a position of authority — such as a supervisor or manager — who has the power to influence the victim.

  • Direct impact: This form of sexual harassment in the workplace directly affects the employee’s job status, benefits, and ability to do their work well.


Do any of these characteristics fit a scenario you’re experiencing at work? If so, don’t hesitate to reach out to our team at Manifest Law. You can book a free consultation where we will listen to your story, assess the strength of your case, and get you the legal support you may need.

Young man at conference wearing badge
Young man at conference wearing badge

$50K higher severance for an engineer

$50K higher severance for an engineer

Background: A client came to us after he was fired as lead software engineer at a startup company. He had accepted the job and moved from California to New York City. He was there for less than a month and his boss decided he was not a good fit for the role. He had not yet received his full sign-on bonus. The company offered him approximately 10% of his sign-on bonus as severance, to compensate him for his time and effort.


Outcome: We were able to negotiate his severance for him, and he received approximately $50,000 above the company’s initial offer.

Result:

$50,000

Woman medical professional

$45k higher severance for a hospital worker

$45k higher severance for a hospital worker

Background: A client came to us after being terminated due to her position being deemed "redundant" during a hospital department reorganization. Despite having over 20 years of service and being in her 50's, she received no severance. During our discussion, she mentioned her boss had made age-related comments. Upon investigation, we found that despite her experience, they retained a much younger, less experienced administrator during the reorganization.


Outcome: We were able to argue that our client was discriminated against based on her age. We were able to successfully negotiate a sizable settlement.

Result:

$45,000

Man working in a call center

$62k higher severance for a salesperson

$62k higher severance for a salesperson

Background: A salesperson was being fired due to poor sales performance. His company offered him a severance agreement that was the equivalent of approximately 3 weeks of pay. He was also told he would not be eligible to be paid commissions on sales that he had worked on, but had not yet closed. He felt that the company was firing him to avoid paying him out on those commissions.


Outcome: We were able to negotiate a severance agreement for approximately $62,000.

Result:

$62,000

Manifest Law
Manifest Law
Manifest Law

How Manifest Law can help

How Manifest Law can help

At Manifest Law, our employment lawyers are dedicated to assisting you with reviewing and negotiating a better severance package. We strive to enhance your financial compensation, secure additional benefits, and negotiate terms that acknowledge your contributions and tenure. Our team advocates on your behalf during negotiations, ensuring that your rights are protected and that the final agreement aligns with your best interests.


Book a free consultation with us today to discuss your situation. We’ll review your case in detail and provide tailored recommendations on the next steps to achieve a favorable outcome in your severance negotiations.

In the context of sexual harassment in the workplace, quid pro quo harassment is defined by several characteristics. These include…


  • Conditioned benefits: An employee is offered job benefits — like promotions, raises, or favorable assignments — in exchange for sexual favors. Conversely, an employee might face negative consequences — like demotion, dismissal, or retaliation — for rejecting sexual advances. Sexual advances does not mean sex, but could mean going out on dates, kisses and romantic touching.

  • Power imbalance: Typically, quid pro quo harassment involves a person in a position of authority — such as a supervisor or manager — who has the power to influence the victim.

  • Direct impact: This form of sexual harassment in the workplace directly affects the employee’s job status, benefits, and ability to do their work well.


Do any of these characteristics fit a scenario you’re experiencing at work? If so, don’t hesitate to reach out to our team at Manifest Law. You can book a free consultation where we will listen to your story, assess the strength of your case, and get you the legal support you may need.

FAQs
FAQs
FAQs

Frequently asked questions

Frequently asked questions

Can you negotiate severance pay?

Yes, you can negotiate severance pay in many cases. When leaving a job, especially if you've been laid off or are resigning under specific circumstances, you have the opportunity to discuss the terms of your departure, including severance.


It's important to assess your situation, understand your rights, and seek legal advice to help negotiate a fair severance package. Book a free consultation with Manifest Law today.

When is severance pay due?

Severance pay is typically due according to the terms agreed upon between you and your employer. This can vary depending on company policies or any agreements negotiated during your departure. 


In many cases, severance pay is disbursed in a lump sum shortly after your employment ends, especially if there's a severance agreement in place. However, the exact timing can vary, and it's important to clarify this with your employer or review your severance agreement for specific details. 


If you have concerns about the timing of severance pay, discussing it with your employer or seeking legal advice can provide clarity and ensure compliance with agreed-upon terms.

Does severance pay stop if you find another job?

Severance pay may or may not stop if you find another job, depending on the terms outlined in your severance agreement. Some agreements stipulate that severance payments cease upon securing new employment, while others may allow payments to continue regardless of your employment status. 


It's essential to carefully review your severance agreement for any clauses related to this scenario. If you're unsure about the terms or need clarification, consulting with an employment lawyer can help you understand your rights and obligations under the agreement.

How long does it take to get severance pay?

In many cases, severance pay is disbursed shortly after your employment ends, often within a few weeks. 


However, it can take longer depending on factors such as legal reviews, administrative processes, or the terms agreed upon in your severance agreement. To ensure timely payment, it's advisable to discuss expectations and any potential delays with your employer upfront. 


If there are concerns about the timeline or if severance pay is delayed beyond what was agreed upon, seeking legal advice can help address any issues and ensure you receive your rightful compensation promptly.

Is severance pay taxed differently?

Severance pay is generally subject to federal and state income taxes, similar to regular wages. 


However, how it's taxed can depend on various factors, including the amount of severance pay received and any state-specific tax laws. Severance pay is typically considered taxable income in the year it is received, and your employer may withhold federal and state taxes from the payment at the time of disbursement. 

It's essential to review your severance agreement and consult with a tax advisor to understand how severance pay will be taxed based on your specific circumstances.

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Avi Goldenberg

Principal attorney at Manifest Law

Speak to us today

Learn how much you may be owed!

Check mark in a circle icon

You deserve to be fairly treated at your workplace

Check mark in a circle icon

All calls are confidential and can be anonymous

Check mark in a circle icon

You are not obligated to hire us or proceed with the case

Fast response.
Same day free consultation.

Picture of Avi Goldenberg, principal attorney at Manifest Law in his office.

Avi Goldenberg

Principal attorney at Manifest Law

Speak to us today

Learn how much you may be owed!

Check mark in a circle icon

You deserve to be fairly treated at your workplace

Check mark in a circle icon

All calls are confidential and can be anonymous

Check mark in a circle icon

You are not obligated to hire us or proceed with the case

Fast response. Same day free consultation.

Picture of Avi Goldenberg, principal attorney at Manifest Law in his office.

Avi Goldenberg

Principal attorney at Manifest Law

Attorney Advertising. This website is intended for general informational purposes only. It does not constitute legal advice and is no substitute for consulting a licensed attorney. Only an attorney can provide you with legal advice, and only after considering your specific facts and circumstances. You should not act on any information on this website without first seeking the advice of an attorney. Manifest Law is an association of lawyers and legal entities that have agreed to do business under a common name. The use of the name “Manifest Law” does not imply that all lawyers or legal entities within the Manifest Law family are part of a single partnership or that they are responsible for the acts or omissions of each other. Any specific attorney-client engagement, the scope of any such attorney-client relationship, and the legal responsibility for any such engagement will be set forth in the
retainer agreement entered into between the client and the relevant Manifest Law attorney(s).

2024 Manifest Copyright. All Rights Reserved.

Attorney Advertising. This website is intended for general informational purposes only. It does not constitute legal advice and is no substitute for consulting a licensed attorney. Only an attorney can provide you with legal advice, and only after considering your specific facts and circumstances. You should not act on any information on this website without first seeking the advice of an attorney. Manifest Law is an association of lawyers and legal entities that have agreed to do business under a common name. The use of the name “Manifest Law” does not imply that all lawyers or legal entities within the Manifest Law family are part of a single partnership or that they are responsible for the acts or omissions of each other. Any specific attorney-client engagement, the scope of any such attorney-client relationship, and the legal responsibility for any such engagement will be set forth in the
retainer agreement entered into between the client and the relevant Manifest Law attorney(s).

2024 Manifest Copyright. All Rights Reserved.

Attorney Advertising. This website is intended for general informational purposes only. It does not constitute legal advice and is no substitute for consulting a licensed attorney. Only an attorney can provide you with legal advice, and only after considering your specific facts and circumstances. You should not act on any information on this website without first seeking the advice of an attorney. Manifest Law is an association of lawyers and legal entities that have agreed to do business under a common name. The use of the name “Manifest Law” does not imply that all lawyers or legal entities within the Manifest Law family are part of a single partnership or that they are responsible for the acts or omissions of each other. Any specific attorney-client engagement, the scope of any such attorney-client relationship, and the legal responsibility for any such engagement will be set forth in the
retainer agreement entered into between the client and the relevant Manifest Law attorney(s).

2024 Manifest Copyright. All Rights Reserved.