As an employee, negotiating severance packages can be challenging, but they can be an equally big headache for underprepared employers.
If you are an employer, you need to seriously consider the long term effects of any severance agreements that you enter into with your employees.
An attorney in employment law can help you draft, review, and negotiate severance agreements to protect your legal and financial interests in the long run.
When drafting an agreement, you need to make sure that it is in compliance with both federal and state laws.
In particular, you need to make sure the agreement adheres to the guidelines set forth by the Equal Employment Opportunity Commission (EEOC).
The EEOC holds the power to investigate employee claims that they were discriminated against in their agreements.
In order to avoid conflicts with employees and investigations by the EEOC, it is imperative that your severance agreement is clear and that you properly administer such agreements.
An attorney who specializes in employment law can help you through this process, or help you review already established agreements to ensure that they are legally valid.
The EEOC can deem a severance agreement invalid based on a number of factors both within the agreement and surrounding it.
An invalid agreement means that an employee can sue their employer despite any waived right to sue within it.
Do not assume that your waivers and agreements are legally binding because they are signed by your employee.
To ensure validity, an agreement's construction and administration should involve the following:

• The language of any agreement that waives an employee's right to sue the employer because of severance should be clear and in language that is understandable to your employee considering their position and education level.
  The EEOC may deem obscure or hidden waivers invalid.
  
• Employers should welcome employees to consult with their attorney prior to signing the agreement.
  Dissuasion can cause an agreement to be invalid to the EEOC.
  
• Employers should give their employees enough time to properly review and consider the agreement.
  Forcing employees to sign quickly can also make the severance agreement invalid.
  
• The terms of the severance agreement should be open to negotiation with the employee.
  
• Employers should NEVER include any clause in which an employee agrees to waive the right to file a complaint with or participate in an investigation with the EEOC.
  Such agreements are always invalid.
  

Good severance agreements are only as long as they need to be and are in clear language-an attorney specializing in employment law can help employers draft such agreements and ensure that they are properly administered and occasionally reviewed to ensure that the agreement is valid.
Solid agreements reduce friction and stress if severance should occur.
They reduce the burden on your human resources staff and prevent unnecessary claims from being filed with the EEOC.
If you are in the process of drafting, reviewing, or negotiating severance agreements, don't hesitate to contact an employment law attorney.