Florida businesses using severance agreements. Employment law update.

Florida businesses may decide to offer a severance package when terminating an employee. Florida companies may choose to offer a severance package or severance agreement to an employee in exchange for the employee waiving her right to sue the employer. 

Recently a Florida federal judge for the Middle District of Florida had to decide whether an employee was allowed to sue her employer for things that she waived in a severance agreement that she signed.

At the beginning of the lawsuit, the Florida employer filed a Motion to Dismiss portions of the lawsuit, arguing that the employee waived her right to sue for those things by signing the severance agreement. Specifically, her claim for retaliation, and also a claim for attorneys’ fees, expenses, and costs.

The Florida employer’s argument was that these claims were barred by the waiver and release contained in the severance agreement the employee signed in connection with the termination of her employment.

The severance agreement at issue provided that the company would pay the employee the following: (1) two months’ salary, (2) a lump sum payment equal to all unused paid time off that the employee had accrued, and (3) a two-month continuation of the employee’s vision, health care, medical, and dental insurance benefits with the company.

In exchange, the employee agreed to release the company and its parents from any and all claims, which the employee ever had whatsoever against the company from the beginning of time to the date the employee signed the Florida severance agreement.

You can find out what happened and read the entire article for free at the link below.