Negotiating your severance in an at-will employment state may seem impossible. Many workers believe they have no rights when losing their jobs. However, you hold more bargaining power than you realize. When you walk into that difficult meeting and learn your position no longer exists, knowing your rights can mean safeguarding your financial future. But before accepting any initial offer, you need to understand your negotiating power.
Colorado as an at-will employment state
In at-will states like Colorado, employers can terminate your position at any time without giving a reason. Similarly you may also quit without just cause. At first glance, this arrangement may look like it favors employers more than workers. However, at-will employment doesn’t take away your ability to negotiate. In fact, certain conditions give you legal rights to severance pay that employers must respect.
Four ways you can negotiate severance
Despite working in an at-will state, you may have stronger rights than you think. While no law forces companies to pay severance, specific situations create rights that you can enforce. You may have legal grounds to negotiate if any of these situations apply:
- You signed an employment contract with severance terms: Your written agreement promises severance pay when you leave. For example, your contract might guarantee two weeks of pay for every year you worked at the company.
- Your company has a written severance policy: Your employee handbook offers severance to departing workers. Perhaps your handbook states that employees with five or more years receive four weeks of pay.
- You belong to a union with negotiated severance: Your collective bargaining unit has secured specific severance terms for its members. These union contracts often spell out exact dollar amounts or pay formulas that protect everyone.
- You’re covered by the Worker Adjustment and Retraining Notification (WARN) Act: Federal law requires 60 days of notice or pay when employers lay off 50 or more workers at once. If your company skipped this notice, you can claim up to 60 days of wages.
These four pathways build your legal case for negotiation. Knowing which applies to your situation gives you confidence to speak up for yourself. With this knowledge, you can now take action.
Securing your financial future
You deserve fair compensation as you close this chapter on your previous company and unlock new opportunities. Review your employment documents and identify which situations apply to your case. When you maximize your leverage and understand your rights, you position yourself for a stronger financial future. Lastly, having an experienced legal counsel can help you navigate the details and secure the full benefits you’ve earned.