Can An Employee Refuse A Severance Package?

Employees can choose at any time to refuse to sign a severance agreement and just walk away from all their obligations with their former employer.

Am I Entitled To A Severance Agreement?

Although Texas law does not provide for severance, some companies actually have a severance policy. In those situations, that policy serves as a contract and would require the employer to provide severance in accordance with what is set out in the written policy.

Is Severance Pay Required By Texas Law?

Texas does not require severance pay by law.

Can I Still Be Sued If My Employee Took The Severance Package?

There are a couple of items where an employer can still face liability, even though the employee signed a valid severance agreement. One of those is unemployment compensation claims. The other one is claims under the Fair Labor Standards Act for overtime and minimum wage. The third category is claims made with a number of different federal agencies or state agencies. Some of those might be whistleblower action with any of the federal or state agencies. A severance agreement cannot preclude an employee’s legal right to file such claims, but it can limit their ability to recover financially.

Additional Information On Severance Agreements In Texas

Occasionally employers, if they have not had an employee sign a non-compete or non-solicitation agreement in the past, will try to add that language into a severance agreement. There are some serious questions as to whether such provisions would be enforceable. An employee can either attempt to eliminate those restrictive covenants in the future or can attempt to reduce them.

For more information on Refusing A Severance Package In Texas, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (281) 277-3066 today.