Losing your job can be tough, especially if the reasoning seems suspicious or unfair. In California, employment law provides specific protections for workers who face wrongful termination. Most people don’t know they have rights in such cases.
“There can be lawsuits for wrongful termination. The vast majority of those end up with settlements rather than drawn-out courtroom battles. But irrespective of the route your case takes, you will be significantly better off with legal representation on your side,” says Harry Nalbandyan, a California employment attorney with Levin & Nalbandyan, LLP.
This article describes where it makes sense to think about lawsuits, guiding you through the way settlements typically unfold, and why learning about what your rights are at work matters so much.
Main Characteristics of a Settlement Agreement
Settlement agreements are business deals. Economic terms that typically go by the name “severance pay” are front and center. The pay is given to aid in your transition and to reduce the possibilities of future legal issues.
Typically, you will also most assuredly read a confidentiality clause. They will request that you refrain from talking about the agreement terms or the circumstances under which you exited. There might also be a non-compete clause that will prevent you from doing business with direct competitors for some years.
Other information includes the return of company property, the termination date, the effective date of your employment ending, and occasionally, ongoing benefits such as health coverage. Each paragraph within these documents is significant, so the document should be read carefully.
Recognizing Red Flags Before Accepting a Settlement
Employers sometimes offer settlements quickly after termination. Quick offers can sometimes be more about protecting the company than making things right for you. Unusually broad confidentiality clauses also raise concern. Standard confidentiality protects both parties’ privacy. But if you are asked to never speak about anything related to your work, including issues you reported, it may be an attempt to cover up misconduct.
Another common warning sign appears in non-compete clauses. These may limit your future employment opportunities in ways that appear unreasonable, so please review these terms carefully.
Lack of detail in severance calculations is another signal to watch for. Employers should explain how they arrived at the payout figure. Vague explanations often hide a lower offer than what you could negotiate with more information.
What if You Do Not Sign?
You do not have to sign the settlement agreement, and no one can coerce you to do so. But opting out of the agreement will not save your job. California is an at-will employment state, so your employer can fire you for virtually any reason or no reason at all if it is not illegal.
Exceptions occur, of course. If you have been terminated based on your race, sex, age, or because you have reported inappropriate conduct or violations, that is a statutory violation, and you may have a right to sue, regardless of whether you signed a settlement. A consultation with an employment lawyer to discuss your case and suggest the best course of action to take is recommended.
Talking with an Employment Attorney
If termination or a settlement is on the table, then employing the services of an employment lawyer is a matter of practicality. The labor laws of the State of California are notoriously complex; most individuals lack the bandwidth or the skill set required to sort through the minutest details. A seasoned lawyer will go through your settlement document step-by-step, locate any suspicious clauses, and maximize your rights along the way.
If your firing is connected to potential discrimination or retaliation or is otherwise unjustified, legal counsel is important to building a strong case. According to the California Department of Fair Employment and Housing, workers are protected from discrimination, harassment, and retaliation in the workplace, and understanding these rights is crucial when evaluating settlement offers. Even if lawsuits are not warranted, attorneys can generally establish stronger settlement terms than individuals might self-negotiate otherwise.
Choosing the proper attorney is paramount. Look for one with a proven history, favorable client resolutions, and a clear, concise communication format. Employment issues are obviously complex, but retaining a capable attorney will facilitate the process as well as the desired coverage during what will usually be a stressful, difficult time.
Conclusion
Facing termination and navigating settlement agreements can feel overwhelming, but you do not have to go through it alone. Understanding your rights, recognizing warning signs in settlement offers, and consulting with an experienced employment attorney can make all the difference in protecting your interests.
Whether you decide to accept a settlement or pursue legal action, being informed and having skilled legal representation ensures you receive fair treatment and compensation. Take the time to review all documents carefully, ask questions, and make decisions that align with your best interests and future career goals.
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