Santa Rosa Severance Agreement Attorney

Navigating Severance Agreements in Santa Rosa—Support, Strategy & Results

When an employee departs from your company, either voluntarily or involuntarily, having a properly drafted severance agreement is crucial. At Smith Dollar, Attorneys at Law, we assist Santa Rosa employers in creating and negotiating severance agreements that protect your business interests while providing fair and clear terms to departing employees. A well-structured severance agreement can minimize risk, prevent disputes, and maintain your company’s reputation.

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Understanding Severance Agreements

A severance agreement is a legally binding contract that outlines the terms of an employee’s departure. While often associated with layoffs or terminations, severance agreements can also apply in cases of mutual separation or early retirement. For employers, the goal is to reduce potential legal exposure, particularly concerning claims related to wrongful termination, discrimination, wage disputes, or other employment-related issues.

A severance agreement typically includes provisions regarding compensation, benefits continuation, confidentiality, non-compete or non-solicitation clauses, and the release of claims against the employer. Each element must be carefully drafted to comply with federal and California state employment laws. Improperly drafted agreements can leave your company vulnerable to legal challenges, even when the separation is amicable.

Drafting Clear and Enforceable Terms

For Santa Rosa employers, clarity in a severance agreement is essential. Vague language or overly broad clauses can lead to disputes or difficulties enforcing the agreement. At Smith Dollar, Attorneys at Law, we focus on drafting severance agreements that are precise, legally sound, and tailored to your company’s needs.

Compensation terms may include a lump sum payment, continuation of salary for a set period, or other forms of financial consideration. Benefits provisions often address health insurance continuation under COBRA, retirement plan options, or accrued paid time off. Additionally, confidentiality clauses protect sensitive company information, trade secrets, and proprietary processes, while non-compete or non-solicitation clauses help safeguard client relationships and business operations after an employee departs.

Minimizing Legal Risk

Employers face significant risks if severance agreements are not carefully structured. A poorly drafted agreement may fail to prevent claims for discrimination, harassment, retaliation, or wage violations. California law imposes specific requirements on releases of claims, particularly regarding employees over 40, who are protected under the Age Discrimination in Employment Act (ADEA). Certain waivers and notice periods are legally mandated for these agreements to be valid.

At Smith Dollar, Attorneys at Law, we help Santa Rosa employers understand these legal requirements and ensure that each severance agreement aligns with state and federal regulations. By anticipating potential challenges and drafting agreements that clearly define rights and obligations, we help reduce the likelihood of disputes and litigation.