I'm your host, Mark Carey. I'm an employment attorney, and I'm here to tell you what your HR department won't tell you. Today we're talking about the moment the axe falls. You've been let go. You're in shock. And they slide a document across the table called a separation agreement. It has a number on it. Most people look at the number, they feel grateful just to get something, and they sign it. Stop. That number is not a gift. It's a purchase price. They are buying your rights. And today I'm going to teach you how to negotiate the real price of your signature so you don't leave money on the table. Let's first debunk a major myth. Employees always ask me, Mark, isn't there a law that says I get two weeks of pay for every year I worked? If I was asked that question, I would be a millionaire over and over and over because I'm asked it so many times. But the answer is no, unless you have a union contract or an employment agreement that explicitly states it, there is no federal state law mandating severance pay. Zero. However, companies usually have a policy. The typical corporate formula is one week, one to two weeks of pay per year of service. But here's what they don't tell you. That is a floor, not a ceiling. That is the go-away quietly price. If you are over 40 under the Older Workers' Benefit Protection Act, you have 21 days to consider that agreement. Use them. Don't sign in the room. You need time to calculate your actual damages. So how do you calculate what you should get? You need to look at your severance not as a reward for past severance, but as a bridge to your next job, which I do tell people quite often. I want you to calculate your personal burn rate, your cash and your bank and how much how long you're going to last. You don't want to deplete all your savings, but you want to, you know, how long you need to figure out how long it will take you to find a comparable job in the market. If you are a C-suite executive, it might take nine to twelve months. Typically those folks have agreements in advance of their termination. We always negotiate that way. If you are mid-level, maybe three to six months of pay. If they offer you four weeks of pay, but the market data says it will take you six months to find a job, that offer is insufficient. You need to counteroffer based on the market reality, not just their internal formula. Remember, employers are cheap. Your argument to them is simple. Your offer exposes me to significant financial risk based on current hiring trends. For my role, I need 16 weeks, not four, to secure a new employment. Don't be shy about it. Now let's look for the money. They hope you forgot. I call this the hidden buckets. Bucket number one, the bonus. If you are fired in October or November, you have earned almost your entire annual bonus. But most plans, bonus plans, say you must be employed on the date of your payout to get it. That is a loophole used to steal your labor. Demand the prorated bonus. We do this all the time on the executive level. No reason you shouldn't do it for you. If you worked 75% of the year, you deserve 75% of your bonus. Don't back down. The bucket number two, the commission. People, listen. Look at your pipeline. If you close deals that haven't yet paid out, get that running. Do not let them walk away with your commissions. Bucket number three, R-H and stock options. This is a huge one. If your stock vs next month and they fire you today, they are effectively clawing back that equity. I often negotiate what's called accelerated vesting as part of the severance. Ask for the next tranche of stock to vegetables. The Cobra trap. Let's talk about health insurance. Cobra. Cobra's expensive. It's 102% of the premium. If the employer is offering to reimburse you for Cobra, that reimbursement is often taxable income to you. Instead, ask the employer to continue paying the employer portion of the premium directly to the insurance carrier for the severance period. I also have asked the employer to pay both the employer and employee premium during the severance period. It saves you the tax hit and keeps the money flowing smoothly. Also, never ask, never accept just accept coverage ends at the end of the month. If you were fired on the 28th and ask for coverage to the end of the month, well, ask for the following month after that. Let's talk about the value of your silence. Finally, remember that you are sell what you're selling. They want a general release of claims. They want to sleep at night knowing you won't sue them for discrimination, retaliation, and unpaid wages, or hire me as your attorney. That won't make them sleep well at night. I'll assure you that. If you have any potential legal claims, if you were treated differently than other others, if you blew the whistle on something, or if you feel the layoff was targeted, your severance shouldn't be two weeks per year. It should be significantly higher because you are settling a potential lawsuit. This is where you need to get a lawyer like myself if you have a claim. The calculator changes from weeks of pay to risk mitigation for the company. That number is much, much, much higher. I promise you that. Here's the bottom line. The first severance offer is never the best severance offer. It's usually a test. Do the math, add up your burn rate, your prorated bonus, your loss stock options, and the cost of health insurance. Compare that to their offer. The difference is what you're trying to negotiate for. Don't leave money on the table. You earned it. If you've been let go, need help reviewing your agreement, give us a call. Until next time, thank you for allowing me to be a service. Have a great week.