If you`re under 40 and have been offered a severance agreement by your employer, it`s important to take some time to consider the terms before signing. There are several factors to keep in mind when evaluating a severance package, including the length of the consideration period.
What is a Consideration Period?
The consideration period is the amount of time an employee has to review and consider the terms of a severance agreement before accepting or rejecting them. This is typically a period of at least 21 days, as required by federal law under the Older Workers Benefit Protection Act (OWBPA). However, some employers may offer a shorter or longer consideration period, so it`s important to review the specific terms of your agreement.
Why is the Consideration Period Important?
The consideration period is important because it gives you time to fully understand and evaluate the terms of the agreement before making a decision. This includes reviewing the amount of severance pay being offered, any non-compete or non-disclosure agreements, and any other conditions or provisions that may affect your future employment opportunities.
During the consideration period, you may also want to consult with a lawyer or financial advisor to ensure that the terms of the agreement are fair and in your best interest. This can help you identify any potential risks or drawbacks that may not be immediately apparent.
What Happens if You Don`t Take the Full Consideration Period?
It`s important to take the full consideration period to carefully review the terms of the severance agreement before making a decision. If you sign the agreement without taking the full amount of time, you may be waiving certain legal rights or benefits that you were entitled to under the law.
In addition, if you sign the agreement without fully understanding the terms, you may be putting yourself at risk of future legal disputes or financial losses.
If you are offered a severance agreement under 40, take the time to carefully consider the terms and conditions before signing. The consideration period is an important part of the process that allows you to fully understand and evaluate the agreement before making a decision. If you have any questions or concerns, speak with a lawyer or financial advisor to ensure that the terms are fair and in your best interest.