The purpose of this blog post is to demonstrate effective severance agreement negotiation. Read the case study below to learn more.
Background: Anika Patel, a seasoned software engineer, worked for a prominent tech company in San Jose, California, for over a decade. Renowned for her expertise and contributions, Anika had developed several key software features that significantly boosted the company’s market position.
Situation: Despite her valuable contributions, Anika was unexpectedly offered a severance package during a company restructuring. Over the years, Anika had encountered a pervasive bro culture and subtle sexism that often undermined her contributions and professional standing. Suspecting the termination was unjust and influenced by these biases, Anika decided to strategically negotiate a higher compensation package.
Initial Steps: Anika assessed her situation, recognizing that her long tenure and significant contributions provided substantial leverage. Additionally, she recalled recent instances of workplace discrimination and gender bias that could potentially form the basis of a legal claim against her employer.
Hiring an Employment Lawyer: Understanding the complexities of severance negotiations and potential legal implications, Anika hired an experienced employment lawyer specializing in Silicon Valley tech industry cases. The lawyer guided Anika through the following strategy:
- Assessing Potential Legal Claims to Increase Severance Agreement Compensation: Anika’s lawyer identified potential claims of gender discrimination and hostile work environment due to the bro culture, which could be used as leverage. The lawyer prepared a detailed account of incidents and gathered supporting evidence.
- Engaging the Employer’s Legal Department to Negotiate Severance Agreement: Instead of negotiating with local management or HR, Anika’s lawyer directly engaged the employer’s legal team. This approach ensured that negotiations were handled by professionals aware of the legal risks and the benefits of a swift resolution. The legal team, understanding the potential liability and cost of litigation, was more receptive to negotiations. Anika’s lawyer promptly asserted her potential legal claims and her demand for an increased severance payment to ensure that the employer remained focused and engaged in resolving the dispute. By making a realistic demand, the lawyer avoided creating unrealistic expectations that could lead to an automatic rejection of the offer.
- Assessing Other Sources of Leverage: Anika’s decade-long tenure and deep knowledge of company operations were emphasized. Her departure could disrupt ongoing projects, making retaining her until a suitable replacement was found advantageous for the employer. Additionally, the lawyer pointed out the potential negative impact on the company’s reputation if Anika’s termination were to become public, especially given her high-profile status within the company and industry, and the possible exposure of the company’s sexist culture.
Outcome: Through strategic negotiation and leveraging the identified factors, Anika and her lawyer successfully secured a significantly enhanced severance package. The final agreement included:
- Increased Monetary Compensation: The cash component of the severance was substantially increased, providing Anika with financial stability during her transition period.
- Extended Benefits: Health insurance coverage was extended for an additional six months beyond the original offer.
- Performance-Based Bonuses: Anika received the bonuses she was entitled to for the current fiscal year.
- Positive References and Outplacement Services: The company agreed to provide Anika with positive references and outplacement services to assist in her job search.
- Non-Disparagement Clause: Both parties agreed to a mutual non-disparagement clause, ensuring Anika’s professional reputation remained intact.
Conclusion: Anika’s case illustrates the importance of strategic negotiation and legal representation in severance discussions. By leveraging her contributions at work, potential legal claims related to gender discrimination, and the employer’s desire to avoid negative publicity, Anika successfully negotiated a favorable severance agreement that provided her with the compensation and support needed to transition to a subsequent employer.
Disclaimer: This case study is for illustrative purposes only. Every employment situation is unique, and there is no guarantee that negotiation will result in higher compensation. Consult with a qualified employment lawyer for advice tailored to your specific circumstances.
Contact the Ruggles Law Firm at 916-758-8058 to Evaluate Your Severance Agreement
Matt Ruggles has a thorough understanding of California severance agreements and decades of practical experience litigating employment law claims in California state and federal court. The fight for employee rights is an ongoing battle that requires vigilance, knowledge, and the unwavering commitment of both employees and employers. California, with its robust legal framework, stands at the forefront of protecting workers’ rights and promoting diversity and inclusion in the workplace.
Contact the Ruggles Law Firm at 916-758-8058 for a free, no obligation consultation.
Blog posts are not legal advice and are for information purposes only. Contact the Ruggles Law Firm for consideration of your individual circumstances.
