When is a severance agreement not enforceable?

In some of the following situations, some or all of the severance agreement may not be enforceable:

  • If the only value being given to you as “severance pay” is money that you are already owed by law. For instance, a final paycheck, or unused vacation pay that should already be paid out to you according to a written policy or agreement.
  • If you can prove that the company used “coercion” to force you to sign the agreement, or that you signed it under “duress.” These words have legal meanings that may not apply to your situation, even if you felt coerced or that you were under duress. Talk to a lawyer.
  • Your age discrimination claims may not be waived if you are over 40, the company is covered by the Age Discrimination in Employment Act, and they fail to include specific language and a specific review period in the agreement. (The part of the ADEA that requires this specific language is the Older Workers Benefit Protection Act.)

There are other situations as well—talk to a lawyer.