Most severance packages are legally binding documents containing waivers or a “release” prohibiting your right to take further legal action against your employer. A severance agreement containing such a waiver may force you to give up rights that affect your income or benefits as a Tennessee retiree or may negatively affect your ability to obtain future employment.

While you might be pressured to sign such an agreement, you should first consider your financial future and begin conversations with an employment lawyer for legal advice concerning any severance package offered in Tennessee.

A number of considerations are to be taken into account and can be improved with the help of a Tennessee employment lawyer, including payment for accrued vacation time, continuing insurance coverage and pension plans.

Getting the Golden Boot

Some Tennessee employers offer large incentives in return for early retirement. Sometimes this retirement is voluntary. Sometimes employees are pressured into “voluntary” retirement despite their dedication, loyalty or long years with the company. A golden boot is the term used for when a company wishes to fire an employee, usually an older employee, but wishes to avoid potential lawsuits protecting older employees from age discrimination.

Though the severance package might seem tempting, if you are 40 years of age or older, you are part of a protected class covered by the Older Workers Benefit Protection Act (part the Federal Age Discrimination in Employment Act). Federal law requires your employer advise you to meet with legal council. If your employer failed to advise you to seek council, make sure that you inform your attorney and also make him or her aware if you fall into another protected class, such as a physical disability or minority status.