From Severance to Security [WEBINAR SNIPPET]

Check out a snippet from our webinar on solidifying your finances in the event of a layoff and how to negotiate severance!

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Episode Highlights:

• Common Mistakes in Layoff/Severance Situations
  • Employees often don’t ask for enough during severance negotiations; documentation of achievements is crucial.
  • Employers frequently lack proper documentation to justify terminations or severance decisions.
  • Both sides should be prepared: employees should advocate for themselves, and employers should have clear, consistent policies.
• Negotiation is Key
  • Everything is negotiable—don’t be afraid to ask for more severance, benefits, or time.
  • Employers may have a “cushion” and expect counteroffers.
  • Use a list of your contributions to the company as leverage in negotiations.
• Legal Considerations
  • Companies are not always required to offer severance unless specified by law (e.g., WARN Act) or contract.
  • The WARN Act requires 60 days’ notice (or pay in lieu) for large layoffs, depending on company size and circumstances.
  • Consistency in severance offers is important to avoid discrimination claims.
• Practical Steps After a Layoff
  • First, take time to process emotionally before responding or negotiating.
  • Ask about other open positions within the company before accepting termination.
  • Consider negotiating for extended health coverage or other benefits.
  • Map out which benefits are portable (e.g., 401k) and which are “use it or lose it” (e.g., FSA, dependent care).
• Employer Best Practices
  • Ensure all documentation is in order and policies are applied uniformly to avoid legal issues.
  • Have more than one person present during termination meetings to protect against potential claims.
• COBRA and Health Insurance
  • Understand your rights to continue health insurance via COBRA and alternatives like the health insurance marketplace.
  • Loss of coverage is a qualifying event for marketplace enrollment, even outside open enrollment periods.
• Severance and Indirect Compensation
  • Severance may be required if stipulated in a retention or employment agreement.
  • Negotiate for acceleration of equity vesting, continued health coverage, or even compensation for lost value due to blackout periods.
  • Job placement assistance can be requested as part of a severance package.
• Creative Negotiation Examples
  • Real-life stories of negotiating for additional compensation due to unique circumstances (e.g., stock value loss during blackout).
  • Don’t hesitate to ask for job placement services or other non-monetary benefits.

Contact Information:

• Casey Duhart: LinkedIn Profile
  • Learn more about her consultancy!
  • Follow her on TikTok
• James Crumlin: LinkedIn Profile
  • Check out his work!
  • And his famous Capitol Steps Crew Workout!

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