Recently in Severance Pay, Release Of Claims Category

February 2, 2011

Hewlett Packard's Board Forced It's Former CEO To Resign Amid Allegations Of Sexual Harassment

Our Orange County Law Firm receives a number of calls involving illegal workplace harassment. In the state of California, it is unlawful to harass a person (an applicant or employee) because of that person's sex. Harassment can include sexual harassment or unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.

Harassment does not have to be of a sexual nature, however, and can include offensive remarks about a person's sex. For example, it is illegal to harass a woman by making offensive comments about women in general.

Both the victim and the harasser can be either a woman or a man, and the victim and harasser can be the same sex. Unfortunately when it comes to sexual harassment women and minorities are unfortunately subjected to workplace harassment and discrimination far too often.

Recently, Hewlett-Packard's board forced its former CEO to resign amid allegations of sexual harassment and expense-account abuses. The case stems from allegations by an independent contractor that the CEO sexually harassed her and falsified expense reports to cover up a relationship, the Los Angeles Times reported.

In the wake of the company's handling of the sexual harassment complaint, four members of the Hewlett-Packard Company are going to step down. Among the incoming board members is Meg Whitman, the former CEO of Ebay and losing candidate in last fall's Californias governor's race.

The Times also reports that court documents filed by HP show the company is planning its own independent probe into Hurd's departure, stemming from a shareholder suit over Hurd's severance package. The ouster of the board members is largely the result of the perception of rash decision making -- The CEO was forced to resign despite HP's determination that he did not violate the company's sexual harassment policy.

If you need to speak to an attorney about an issue with discrimination, sexual harassment, unpaid wages contact our Orange County Law Firm for a confidential consultation to discuss your rights as an employee.

December 8, 2010

Is My California Employer Required To Give Me Severance Pay?

Lately, our Orange County Law Firm has been receiving calls regarding this issue. Employee reductions and terminations have been an unfortunate result of the current economic downturn. In California, there is no requirement in the Fair Labor Standards Act to provide Severance Pay. However, "Severance Pay" is often granted to employees upon termination of their employment. A Severance Agreement is a contract, or legal agreement between an employer and an employee that specifies the terms of an employment termination, such as a layoff. Often times this agreement is called a "Separation" or "termination" agreement or "Separation Agreement General Release and Covenant Not to Sue." The consideration offered for the waiver of the right to sue cannot simply be a pension benefit or payment for earned "vacation pay" or sick leave to which the employee is already entitled but, rather, must be something of value in addition to any of the employee's existing entitlements.

To minimize the risk of potential litigation, many employers offer departing employees money or benefits in exchange for a release (or "waiver") of liability for all claims connected with the employment relationship, including discrimination claims under the civil rights laws enforced by the Equal Employment Opportunity Commission (EEOC) -- the Age Discrimination in Employment Act (ADEA), Title VII, the Americans with Disabilities Act (ADA), and the Equal Pay Act (EPA). While it is common for senior-level executives to negotiate severance provisions when initially hired, other employees typically are offered severance agreements and asked to sign a waiver at the time of termination.
An example of consideration would be a lump sum payment of a percentage of the employee's annual salary or periodic payments of the employee's salary for a specified period of time after termination. The employee's signature and retention of the consideration generally indicates acceptance of the terms of the agreement. If an employer decides to offer the employee a severance package, quite often the employer will have the employee sign a release, that's an agreement not to sue the employer in exchange for receiving certain benefits. The employer must give the employee a certain period of time to review the release, allow them to revoke the agreement for a limited time after they sign, and advise them in writing to consult with an attorney. If you have been presented with a written severance agreement or release of claims and you would like to discuss your rights and obligations under it please contact us.