Practical Severance Counsel in Chicago
Losing a job or planning a transition is stressful. A severance package affects your pay, benefits, future employment, and legal rights, which is why careful review matters. Lázaro Law Group is a boutique employment law firm that provides advice and counseling to businesses and executives, represents clients in employment litigation, conducts independent investigations, and negotiates severance agreements. That combination of counseling and advocacy helps us evaluate risk, find leverage, and pursue a result that fits your goals.
What a Severance Agreement Covers
A severance agreement, sometimes called a separation agreement, usually sets out the money and terms offered to a departing employee in exchange for a release of claims. The document may address severance pay, whether it will be a lump sum or a series of payments over a specified period, and when payments begin. It often includes provisions about confidentiality or non disclosure, non disparagement, and the return of company property.
Many agreements also contain restrictions that affect future employment, such as non compete agreements or non solicitation covenants, as well as clauses about cooperation with the company and how references will be handled. Most importantly, the agreement typically includes a general release and waiver of employment related claims. Knowing what each term does, and how it connects to your career plans, is essential before you sign.
When to Speak with a Lawyer
- You were terminated and offered a severance package that seems unclear or inadequate.
- The agreement restricts your ability to take a new job or continue serving clients in your industry.
- You believe the offer is connected to potential claims, such as discrimination or retaliation.
- You want to protect health insurance benefits, bonus eligibility, or other benefits during your transition.
- You have questions about waivers, the release of claims, or the impact on future employment.
Early advice helps you understand leverage, avoid common pitfalls, and decide whether to negotiate or accept the offer.
A lawyer with experience in employment law can provide guidance and help you negotiate the terms of your severance agreement. They can identify any potential legal issues and advise you on whether the terms of the agreement are fair and legal. If necessary, they can also help you pursue legal action to protect your rights. Overall, if you have any concerns about your severance package agreement, it’s a good idea to speak with a lawyer to ensure that your legal rights and interests are protected.
How Our Chicago Attorneys Approach Severance Negotiations
Our first step is to learn your objectives. We review the proposed language, your employment contracts or employment agreements, and the circumstances surrounding the termination. We then identify legal issues and potential claims that may influence negotiations. With that groundwork in place, we discuss strategy and handle severance negotiations with the company or former employer, focusing on a reasonable outcome that protects your interests and your next move.
Key Clauses that Affect Your Future Employment
Non-Compete Scope and Geographic Area
Some agreements restrict competition for a defined geographic area or period. We evaluate whether the scope matches your role and discuss ways to narrow or clarify language so your career can move forward.
Confidentiality and Non-Disclosure
Provisions limiting disclosure of company information are common. We examine definitions and exceptions, including how confidentiality interacts with your ability to discuss your experience during a search for a new job.
Non-Disparagement
Non disparagement language can be mutual or one-sided. We consider how statements will be handled, whether the company will provide a neutral reference, and how violations are defined.
General Release and Waiver of Claims
Because a general release often covers a wide range of employment related claims, we make sure you understand what rights you are waiving before you sign. We also review any carve-outs, cooperation requirements, or rehire eligibility language.
Payment Structure and Timing
Severance pay can be a lump sum or scheduled payments. We look at timing, offsets, and what happens if payments are late or if disputes arise, then negotiate terms that support financial stability during your transition.
Step-by-Step: From Offer to Agreement
- Review. Share the proposed agreement and any offer letters, policies, or prior agreements.
- Assessment. We analyze terms, identify risks, and consider potential claims that may influence negotiations.
- Strategy. Together we decide whether to request revisions, accept, or prepare for additional discussions.
- Negotiation. We communicate with the company or former employer to improve pay, benefits, and protections.
- Finalize. We confirm the final language, explain obligations, and outline next steps for a clean transition.
How Severance Connects to Other Employment Law Issues
Severance discussions often intersect with discrimination, harassment, retaliation, or wage concerns. Because our firm litigates employment disputes and conducts independent workplace investigations, we understand how employers evaluate risk and structure settlements. That perspective helps align negotiations with your best interest while minimizing the chance of future conflict.
What to Look for in a Severance Package
A clear agreement supports a smoother exit. Consider the following questions as you review:
- Does the package specify the total severance pay, the payment method, and the start date for payments.
- Are there non compete or non solicitation terms that limit opportunities in your field or with certain clients.
- How are health insurance benefits and other benefits addressed during the transition.
- Is there a non disparagement clause, and if so, is it mutual.
- What claims are being released, and are there carve-outs you need to preserve.
- Does the agreement include confidentiality provisions that affect your job search or reference checks.
Common Triggers for Negotiation
- A short payment window that does not reflect your role, tenure, or performance.
- Restrictive covenants that overreach and limit your ability to work in your industry.
- Missing provisions related to references, rehire eligibility, or how disputes will be handled.
- Vague language about cooperation, company property, or post-employment obligations.
- Terms that do not account for unpaid commissions, bonuses, or expenses.
We explain practical options, then negotiate adjustments that reflect the reality of your departure and your plans.
Why Employees Choose Lázaro Law Group
Clients come to us for a calm, strategic approach. We provide employment law advice and counseling to businesses and executives, and we negotiate severance agreements that balance pay, protections, and future employment. Our attorneys also represent clients in employment litigation and conduct independent investigations, which gives us insight into how companies write agreements and manage risk. That perspective helps us push for language that protects you while closing the chapter professionally.
What to Bring to Your Consultation
Bring the proposed severance package, any employment contracts or employment agreements, and recent communications about your termination. If you have company policies, prior performance reviews, or information about unpaid bonuses or expenses, include those as well. We review the file, answer questions, and discuss options for moving forward.
Speak with a Severance Package Lawyer in Chicago
If you were offered a severance package in the Chicago area, Lázaro Law Group can help you review the terms and negotiate with confidence. Speak with a severance package lawyer in Chicago about your agreement, your goals, and the path to a resolution that supports your next job and protects your legal rights.
Frequently Asked Questions
Does Illinois law require employers to provide severance pay?
Requirements usually come from company policy or the agreement itself, not a universal legal mandate. Before you sign, have a lawyer review how Illinois law and the contract language affect your employee rights and potential claims. Lázaro Law Group reviews and negotiates severance agreements to protect your interests.
What terms should a terminated employee review before they sign?
Look closely at severance pay amount and timing, health insurance benefits, any non disclosure agreement, a non disparagement clause, non compete restrictions, and the scope of the general release or release of claims. These items can shape a departing employee’s ability to pursue a new job and to preserve legal rights.
Can a departing employee negotiate severance and other benefits?
Yes. Severance negotiations often address money, payment structure, bonuses or expenses, references, and limits on future employment within a geographic area. Our Chicago attorneys evaluate risks, identify leverage, and negotiate revisions consistent with your goals and the realities of your termination.
How can severance agreements affect an employee’s ability to find a new job?
Non compete provisions, non solicitation terms, and confidentiality clauses can restrict where and how you work. Careful review helps ensure the agreement is reasonable and does not block future employment or client relationships. Ask counsel to explain how each restriction operates and whether revisions are possible.
What if my employer terminates me and offers money for a release of claims?
A lump sum or scheduled payments may be offered in exchange for a broad waiver. Before you sign, assess potential legal claims, the scope of the general release, and whether the offer fairly reflects your service and salary. Lázaro Law Group can analyze the proposal and negotiate on your behalf.
How do I choose a Chicago severance attorney, and do awards like Super Lawyers matter?
Consider experience with severance agreements, clarity of advice, and a process that centers your best interests. Many employers and workers research directories such as Super Lawyers, yet fit and strategy matter most. In Chicago employment matters, choose counsel who will review, explain, and negotiate terms aligned with your goals.
“I have worked with Rafael and his firm for many years. He has been my “go to” partner for many investigations. Rafael is objective, fair, and thoughtful in his approach. He gets to the essence of the most complicated issues being investigated. Rafael has become a trusted partner in resolving situations and acts with integrity.”
-In house employment counsel of large privately held company
