Lebau & Neuworth Fight for Optimal Outcomes in Maryland Severance Cases

Maryland is home to four Fortune 500 companies: Lockheed Martin, Constellation Energy, which owns BG&E), Marriott International, and Xylem. Aside from the federal and state governments, Maryland’s largest employers include Johns Hopkins University, the Johns Hopkins Health System, the University of Maryland Medical System, and Black & Decker. Amazon has also grown its workforce exponentially in Maryland.

These large employers and small to mid-sized companies may offer severance pay to employees. This provision is contingent on agreements to release and waive all legal claims. No Maryland or federal law other than the WARN Act (Worker Adjustment and Retraining Notification Act.) This is a crucial piece of legislation designed to protect employees and provide them with advance notice in the event of significant workforce changes. For Human Resource managers, close familiarity with the WARN Act is critically important for ensuring compliance and fostering a transparent and fair working environment. 

Aside from this federal law, nothing fully requires an employer to provide the severance pay deserved by eligible workers. In a related major news story, we’ve learned that Marriott is set to lay off more than 800 employees. Marriott International, a global hotel chain based in Bethesda, Maryland is on the verge of doing so by the beginning of the new year, 2025. 

Most severance packages give the recipient a monetary amount in exchange for declaring the individual will not take any legal action against the former employer. Some employers impose additional restrictions regarding the ability to work for a competitive company or to hire their current employees. 

Unfortunately, the majority of severance agreements do not adequately address former employees' concerns regarding how the company will respond to reference requests and the entitlement to unemployment compensation. When an individual gives up the right to take any legal action, it is important to consult an attorney to see if claims are available that might be worth more than the parting offering from a company. 

Even if there are no potential claims, or if the company is unwilling to increase the severance package, it is worth seeing an attorney to safeguard against the company potentially informing employers about any matters that may interfere with the individual’s job search or sought unemployment. 

The majority of employers consider making monetary and non-monetary adjustments to an offered severance package, depending on the full picture of relevant facts and circumstances for an individual’s situation. The attorneys at Lebau & Neuworth have helped countless employees maximize their severance packages, many of such instances involving some of the largest companies in Maryland. Having one of our attorneys assist you during severance negotiations can benefit you in many ways, including but not limited to:

•Increasing the amount of severance pay

•Ensuring there is no harmful language in the severance agreement, such as overly restrictive non-compete clauses

•Fighting for beneficial language in the severance agreement such as mutual non-disparagement clauses, or a neutral employment reference

•Increasing payment of COBRA premium

•Fighting for faster payment of severance funds

The lawyers at Lebau & Neuworth can help you level the playing field so your rights are protected and you get the best deal possible. If you or someone you know needs legal support, please visit lebauneuworth.com or contact us at ​(410) 296-3030 to discuss your concerns.