Lost My Job Today, Asked to sign a release...

[LegalFiction]

They sat me down and gave me a release to sign, which I took home to read first. My question is, if I sign this, will this somehow invalidate my ability to collect unemployment insurance should I need to? Thanks in advance.

It reads something like this:

RELEASE OF CLAIMS AND CONFIDENTIALITY AGREEMENT

I, Employee, FOR AND IN CONSIDERATION of the payment to me of the
additional amount of X, less taxes and deductions required by law (the "Severance Payment"), hereby
release, acquit and forever discharge Company and its affiliates, subsidiaries, predecessors,
successors, directors, shareholders, agents and employees (collectively "Company"), from any
and all actions, causes of action, claims, demands, damages, expenses and compensation, on
account of or in any way arising out of my employment or termination of employment with
Company, whether or not known by me at the time I sign this Release, including, without
limitation, all claims under state, federal or local statutes or common law.
I further agree that the terms of this Release and the discussions which led to it will be
confidential and will not be discussed with or revealed to any persons other than to my spouse,
lawyer or accountant, and I will not publish or publicize any of its terms in any manner
whatsoever. I understand that nothing in this Release affects my duties and obligations under
any preexisting agreement with the Company to maintain in confidence the Company's
confidential, proprietaiy or trade secret information.
I understand and agree that this Release may represent a compromise of doubtful and
disputed claims and that the Severance Payment is not to be construed as an admission of
liability by the Company. I further understand and agree that the Company will pay the
Severance Payment on each regularly scheduled payday in sums equaling X of my regular
pay after I sign this Release and return it to the Company.
This Release contains the ENTIRE AGREEMENT between the parties hereto; this
Release can only he modified in a writing signed by all parties. Arizona law applies to this
Release.
I have carefully read this Release and I understand its contents. I was instructed to
consult an attorney before signing this Release. I sign this Release voluntarily as my own free
act and it is my intention to be legally bound hereby.

 

[disagreeable]

Likely, Yes. I would request an amendment regarding UI, if you find the other terms acceptable.

 

[LegalFiction]

Thanks for the reply. I will edit it myself and send it back. I notice this document only has a place for my signature, so they are not a party to a contract and are under no obligation to give me the amount shown on the release. What a clever trick. Offer a few months pay in exchange for volunteering to waive all rights to future claims, which must surely involve UI since that is the only claim most people wish to pursue. They are a notoriously cheap company and have violated federal and state law at least a few times that I have been made aware of.

 

[army judge]

Who knows?

Don't know enough to say, and don't want to know more, and you shouldn't say either!

I know that IF you alter the form (in anyway), you'll likely queer your payout!!!!!

I suggest you hire an attorney to review the document.

The terms might be onerous and possible illegal.

If I were you, I'd sign the form, take the money (the company is gonna give me) and run.

When that (settlement money) money ran out, I'd file for UI!

 

[mightymoose]

Why sign it at all? Tell them no.

 

[LegalFiction]

I think you are right mightymoose. Of course, I completely re-wrote the document as an elaborate way of refusing their ridiculous offer...which is actually my offer since I am the only one signing it.

 

[cbg]

Let me ask you a question: Do you have any intent of suing them for anything?

 

[LegalFiction]

No, but I need to make sure I can still collect UI if necessary.

 

[cbg]

If you're not planning on suing, then you're cutting off your nose to spite your face. Those documents are very, very common; indeed, they are SOP when offering severance. I have yet to hear of one that limited or eliminated your ability to collect UI. It may be, depending on your state, that the severance would delay your UI but that's all to the good - it means you have income for longer. (In my state, the fact that you were required to sign this document in order to get severance means that you would NOT have to wait for UI to kick in - but my state is not all states.) By all means have it reviewed by an attorney or even (gasp!) ASK them whether they intended this to include unemployment, but this is not a "ridiculous" offer at all; it is quite standard, and if you've really done what you claim upthread, you may have just killed your severance over nothing.