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Public Service Announcement – The Severance Trap: What Wall Street Hopes You Don’t Know

Severance agreements aren’t neutral documents. They’re surrender agreements drafted by armies of corporate lawyers to strip you of your voice and legal rights.

My advice to anyone facing termination:

* Do not sign anything immediately. You’re in shock and financially vulnerable—that’s when they pressure you hardest.
* Do not accept their “severance” in exchange for silence. You’re trading your story for pennies while they avoid public accountability.
* Consult an employment attorney who specializes in wrongful termination and whistleblower cases.

They want you gone quietly because public testimony is their nightmare.

Your silence has value—don’t give it away for free.

Recent Court Scrutiny Shows the Tide Is Turning:

1. NLRB Crackdown (2023-2024): The National Labor Relations Board is aggressively challenging severance agreements with overly broad confidentiality clauses or non-disparagement provisions, ruling they illegally restrict employees’ rights to discuss workplace conditions.

2. McLaren Macomb Case (2023): The NLRB ruled that severance agreements requiring confidentiality and prohibiting disparagement violate federal labor law—a landmark decision changing how companies draft these agreements.

3. Increasing Judicial Skepticism: Courts are scrutinizing whether releases are truly “knowing and voluntary” under the Older Workers Benefit Protection Act (OWBPA), especially when:
* Employees aren’t given adequate time to review (21-day minimum required)
* There’s pressure or coercion involved
* Release language is overly broad or unclear
* Severance pay is insufficient for what’s being surrendered

4. SEC Whistleblower Protections: The SEC has taken enforcement action against companies whose severance agreements contain language discouraging whistleblowing.

Companies exploit the vulnerability of workers under sudden financial pressure. They’re betting you’ll sign out of fear.

But courts are catching on, and agreements signed under duress or containing illegal provisions may be unenforceable.

Don’t make it easy for them. Your story matters more than their settlement check.