Top 10 Reasons to Have a Lawyer Review Your Severance Agreement
This is the title of an article published in Forbes magazine today. It is a must read for executives, and others, leaving their current employment and who are presented with a severance agreement.
Guess what item made the Top 10 list? That’s right! A non-compete or non-solicitation provision. The article said the following about the topic:
Many employees are bound by non-compete and non-solicit agreements created in employment contracts or other documents they have signed. These agreements prohibit the employee from competing with the employer in certain areas for a specific amount of time, and from hiring other workers away from the employer. Where these restrictions already exist, a lawyer should ensure that the severance agreement does not expand them. Where the employee has not already entered agreements on these topics, the attorney can work to limit the time and scope of restrictions the separation agreement imposes.
My Take: Make sure you know the long-term ramifications of signing that severance agreement. It may provide you with a few thousand dollars today but what effect will it have on your employment options for the future?