Me and about 12 other people were laid off last week from a company in Massachusetts. We were all offered a severance package ranging from two weeks pay to more depending on how long we worked for this company. The catch is that they want us to sign something called a waiver and release of claims against the employer. It reads like a load of legaleese but sounds like we are agreeing not to sue the company. Is this legal in Massachusetts? Should I sign it? As far as I know, the company hasn't done anything wrong, not to me anyway. Business is slow and they had to cut costs.
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The Editor, Mark Bernardin, is an attorney living in MA. Please send your suggestions or comments to: TheEditor@malawforum.com
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Severance pay contingent upon signing release
Sorry about your job. In general, the practice you describe is legal. MA employers are not required to give a severance package or severance pay to employees who are terminated, unless the employees have some contract or bargaining agreement that requires it. Accordingly, they are free to ask employees, in return for the severance pay, to sign a release, a document that waives any legal claims the employee may have against the employer.
Your second question is harder to answer. It's OK to sign the document and take the cash UNLESS you might have some potential claim against the company. For example, if you were sexually harassed before the termination, you would certainly want to discuss the situation with an employment law attorney before you sign the release. Beyond that very basic analysis, I can't really tell you if you should accept the deal.