Archive for the ‘Employee Tip – Severance & Settlement’ Category

Asked to Resign– Should You Do It?

February 12, 2010

Have you been asked to resign your job?  Told it will be “better for you” if you do?  The employer may list potential benefits of resignation, such as it being better for your job search, and helping you not have to report a discharge on your resume, etc.

And sometimes, resignation is in fact the better option for a worker.

But here’s the issue: do you really want to rely on your employer’s advice about what’s in your best interest at the point the employer is asking you to leave?

Often, for Wisconsin workers, it is a worse decision to agree to a forced resignation than to be fired.

Here are some potential disadvantages of resigning (as opposed to being fired):

- It Can Hurt Unemployment.

A resignation can make it more difficult for a worker to get unemployment benefits.

- It Can Hurt Potential Legal Claims.

A discrimination claim or other termination-based legal claim can lose value if the worker resigns as opposed to being fired.  An employee who is fired can assert the employer (the termination decision-maker) is clearly responsible for the job termination and the lost monies that result from that decision clearly made by the employer.  An employee who resigns leaves himself more open to argument that he (rather than the employer) was the person who caused his lost monies, thus the employer argues it should not be responsible for legal damages.

- It Can Hurt Potential Severance or Settlement Negotiations.

If an employer has a signed resignation document from you– particularly if it’s also accompanied by a signed statement “admitting” wrongdoing that you didn’t really agree with but signed anyway because you felt pressured, etc.– then the employer knows that you have weakened the potential value of your legal claims.  Lesser legal claims = lesser leverage for you to negotiate severance or settlement terms with the employer.

This post is NOT saying that agreeing to resign may not have potential benefits, or may potentially help a worker, in some situations.

There are some situations where on the scale of pros and cons, it makes sense to accept a forced resignation rather than be terminated.

But in my observation, many workers do not consider and weigh all the pros and cons, and too readily accept the employer’s assertion that resignation “is in your best interest.”

If  an employer is asking you (or telling you) to leave, your best interest is not the employer’s first priority.  Consider talking to an employment attorney, or at least someone who is independent of the employer and who can speak to you about what is in your best interests without having to serve the employer’s interests as well.

DISCLAIMER: The information in this blog is not legal advice, nor does it establish an attorney-client relationship between you and Employee Rights Attorney Michael Brown or the law firm of Peterson, Berk & Cross. Legal advice often varies between situations. If you want legal advice for your specific circumstances, you must consult with an attorney (and an employment attorney for employment matters).

For more information about Wisconsin employment lawyer Michael F. Brown and Peterson, Berk & Cross, S.C., please visit here.

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WI Employee Discrimination Complainants and Go-With-Your-Gut Settlement Offers

June 15, 2009

Of those workers in Wisconsin who file discrimination complaints without an attorney, most have no idea how much a fair settlement value would be for their case.  And how should they?  For nearly every employee complainant, this is their first legal complaint, and they have no familiarity with the legal process, with what sorts of awards can be won, or with what typical settlement ranges are.

So I can’t blame any employee for not knowing what their case could be “worth”- that’s a very difficult thing for a non-attorney to get experience with or solid information about.

However, an employee who does not have an idea of his or her case’s value will often make mistakes that cause their case not to be settled, and litigation to be prolonged (and the case possibly lost).

In my experience, employees who do not have an accurate idea of what their case is worth will tend to highly overassess the worth.  This overassessment is not usually based on the law, but rather based on the employees’ ”gut” feeling of how much the employer should pay, based on how unfair the employer’s conduct was.

It is not uncommon for an employee complainant to assume that his case could be worth hundreds of thousands of dollars, or several years’ worth of severance pay, when in fact his specific case has legal and practical limitations that make his case worth far, far less than what he thinks.   (Now, there are a few employment discrimination cases out there that are in fact worth hundreds of dollars in damages, but those are the vast minority of cases).

Often, as a result, employees who have these wrong assumptions will: (1) make settlement offers that are way too high, often higher than legal damages/award maximums;  (2) cause the employer to feel the employee is completely unreasonable, and stop engaging in any further settlement talks.

You don’t want to block yourself out of a reasonable settlement offer because you are asking for the moon and don’t know it.

On the other hand (although less common), some employees will significantly underassess the value of their case.  For example, an employee may focus on the value of a discrimination claim and not know that she in fact has a potential claim for unpaid overtime wages that has strongly supportive evidence and is worth far more in damages/monies than the discrimination claim being pursued.

This is where attorneys can help.  Employment law attorneys who have worked on and evaluated many discrimination claims can provide a thorough legal analysis of what your specific case may be worth, and whether your analysis may be missing any important factors.  The attorney’s assessed value may be much lower than what you want to hear- or maybe higher, to your pleasant surprise- but either way, it’s best to get all surprises removed from the equation as early as possible.

Here is a post that discusses “Things to Consider Before Filing a Discrimination Complaint at the Wisconsin ERD or EEOC,” including information about valuing an employee’s Wisconsin discrimination case.  That post, and this one, are for general information only.  Again, if you want a specific evaluation of your own discrimination case’s value, you should consult with an employment attorney to get a complete assessment.

DISCLAIMER: The information in this blog is not legal advice, nor does it establish an attorney-client relationship between you and Employee Rights Attorney Michael Brown or the law firm of Peterson, Berk & Cross. Legal advice often varies between situations. If you want legal advice for your specific circumstances, you must consult with an attorney (and an employment attorney for employment matters).

For more information about Wisconsin employment attorney Michael F. Brown and Peterson, Berk & Cross, S.C., please visit here.

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Employee Tip: Things to Consider When Your Employer Offers a Severance Agreement

August 30, 2008

If you are a Wisconsin employee, and your employer has terminated your job and offered you a severance agreement, you should consider the following things. (Please note this post does not provide legal advice- if you want legal advice, you should contact an attorney and discuss your specific severance agreement and circumstances).

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