How does biglaw severance work? NDA usually required? Forum

[Anonymous User]

When you are let go, and the firm is willing you pay you a 3-month severance up front to go away, do they normally make you sign anything (like a non-disclosure/non-disparagement agreement)? I will be getting mine soon and want to know what the standard practice is.

Also would they make me waive any claims? (I really believe I am being let go for a demonstrably discriminatory reason) It's not that I am planning on suing my firm, but I don't want to waive that unless they want to pay for it.

[bwh8813]

If you really think you're being let go for demonstrably discriminatory reasons, talk to an employment lawyer before you do anything else.

[jacketyellow]

When you get let go from a firm, you will definitely have to sign an NDA and a waiver of claims. When I was let go, I hated everything about it, but I couldn't really point to demonstrably clear discrimination that happened to me while I was there. I was given a week to look the paperwork over before signing. However, if you don't sign, you won't receive severance and will be terminated immediately -- and will have to immediately apply for unemployment.

I ended up signing the NDA and waiver and receiving 3 months of salary. So, you have to balance receiving 3 months salary against receiving unemployment and possibly litigation over discrimination. If you have a claim, go ahead and speak to an attorney and he or she will advise you on what to do.

[Anonymous User]

You will likely have to sign a separation agreement and release. It is unlikely they will call the pay severance (which has specific employment law meaning), but rather, separation pay. You likely can also still collect unemployment--this will depend on your state. Severance is often offset from unemployment but separation pay is not.

But no, law firms are not fools. They're not going to give you a soft landing and the right to pursue claims against them! The three months on their website may be worth way more than whatever you're getting paid too--it's much easier to move during lateral season when you appear to be in good standing than to "quit" with nothing lined up.

Also, consider that a law firm has literally unlimited resources to fight a suit, no matter how meritorious. You likely have limited resources. Sometimes it's better to put a situation behind you and move on than to get mired in something you can ill-afford. Do what's smart here for you. Best of luck.

[Anonymous User]

Op here. Does asking for more severance ever work? For example, not threaten to sue but state the facts pointing to discrimination and spin it as how it affected my budget and plans (being fired shortly after requesting pregnancy leave etc).

[Anonymous User]

You want time to find a new job. The money is secondary.

[BloggerAMG]

Hello,

I'm that poster who maintains a blog about O'Melveny, which contains reports of them allegedly mishandling sexual abuse or discrimination claims. As a result of that, I sometimes get calls or emails from people at law firms who are being discriminated against, seeking advice. Most recently, I was contacted by a woman with a child, and a salary she desperately needed. Heartbreaking story of petty and callous abuse. She was wondering if she should file an EEOC complaint as her lawyer recommended. I told her to listen to her lawyer, and that it's her choice, but to also consider just leaving quietly so as to not disrupt her life, and avoid the risk of getting blacklisted. I also noted that although such lawsuits could result in huge seven figure verdicts, e.g. if you're in a state court and not in mandatory arbitration, and you get a good jury, they can also not be worth the bother. They're guaranteed to provide a fortune to the defense lawyer defending your claim, but they may not be worth your time. Of course some plaintiff's lawyers will always recommend you fight, because even a small $30,000 settlement, where they get $10,000, is worth more to them than your situation and future. They might take your case, send a demand letter that gets you no more than you would have gotten without them, and still demand their contingency cut. Not all plaintiff's lawyers are like this, but some play that volume game. That's why you need to be careful.

In your situation, it sounds like you want to settle your claims for their fair value, knowing you will never take the next step of suing. Your next approach is entirely dependent on your facts, and whether you signed a mandatory arbitration agreement. I would privately talk to a good plaintiff's employment lawyer, try to estimate the value of your claim, weigh it against the risks of getting blacklisted etc. and your needs (are you also a single mother supporting a child?) and then decide. It's a hard question that no one can answer but you. But I'm very sorry that you are in this situation. It's a terrible and shouldn't happen to anyone.

BloggerAMG

[Anonymous User]

You want time to find a new job. The money is secondary.

Op here. Finding a new job is not an issue. I want to get paid because I feel it's unfair and I am letting them off too easy.

[FND]

Hello,

I'm that poster who maintains a blog about O'Melveny, which rails against them as some kind of weird personal vendetta

fixed that for you

[BloggerAMG]

You want time to find a new job. The money is secondary.

Op here. Finding a new job is not an issue. I want to get paid because I feel it's unfair and I am letting them off too easy.

You need to talk to a good local plaintiff's lawyer. They have methods, sometimes databases of verdicts and settlements, to effectively value your situation. It's hard for anyone here to advise you because we do not know your specific facts, your location, whether you signed an arb. agreement, whether they will be able to remove your case to federal court and other factors. But a good plaintiff's lawyer will have all of that info and be able to give you a range, and then you can decide what you want to do. Good luck! One good thing about fighting is that it will be much harder for them to do, to someone else, what they did to you.

[Anonymous User]

I was not asked to sign a NDA when I was fired.

I was asked to sign a confidentiality agreement with respect to IP.