A severance agreement is a legally binding contract outlining the terms under which an employee leaves a company. It often includes severance pay, benefits, and post-employment restrictions—but in exchange, the employee typically gives up the right to sue. Employers offer severance packages for one primary reason: to limit their legal exposure. If they fear a discrimination claim, retaliation claim, or other liability, severance agreements become a strategic shield.

For Michigan employees, signing a severance agreement without legal review is risky. These documents are written by the employer’s lawyers, not yours. They are designed to protect corporate interests, minimize payouts, and secure broad waivers of your rights. Add the pressure of sudden job loss—financial fear, urgency, and power imbalance—and many employees sign away valuable legal claims or accept far less money than they deserve.

A seasoned Michigan employment attorney levels the playing field and ensures your next move protects your financial future, your reputation, and your rights.

What a Michigan Severance Agreement Typically Includes

Severance Pay Structure

Severance compensation is usually paid in one of two ways:

• Lump-sum payment: A single payout delivered after signing.
• Salary-continuation: Ongoing pay for a set period.

How the amount is calculated varies. Employers consider tenure, job role, whether they view you as a litigation risk, and how much leverage they believe you have. An attorney evaluates these factors and determines whether the offer is fair—or whether substantial additional compensation is achievable.

Release of Legal Claims

The core of nearly every severance agreement is the release of claims, meaning you permanently give up the right to sue your employer. This includes federal and Michigan-specific claims such as:

• Elliott–Larsen Civil Rights Act (ELCRA) – discrimination based on race, sex, age, religion, national origin, LGBTQ+ status, and more.
• Persons With Disabilities Civil Rights Act (PWDCRA) – Michigan’s disability-rights protections.
• Whistleblower Protection Act (WPA) – retaliation for reporting legal violations.
• FMLA – interference with or retaliation for taking protected medical or family leave.
• ADA, ADEA, Title VII – federal anti-discrimination laws.

Confidentiality & Non-Disclosure Clauses

Most severance agreements contain confidentiality, non-disparagement, and non-disclosure provisions. These clauses may:

• Restrict what you can say about your employment, termination, or the severance terms
• Limit your ability to discuss workplace discrimination or harassment

Michigan law places limits on confidentiality in cases involving illegal conduct, especially discrimination or sexual harassment; overly broad NDAs can violate state and federal public-policy protections.

Non-Compete, Non-Solicitation & Restrictive Covenants

Restrictive covenants attempt to control your post-employment options. In Michigan, non-competes are enforceable only if they are:

• Reasonable in duration
• Reasonable in geographic scope
• Necessary to protect legitimate business interests

These terms are negotiable—and often significantly so. Weakening or removing them can dramatically affect your ability to secure your next job.

Benefits, PTO & COBRA

A solid severance review should address:

• Health insurance extensions and COBRA assistance
• Whether the employer must pay out unused PTO, depending on policy
• Employer-paid COBRA premiums, a major negotiation point in Michigan separations

Medical coverage gaps are one of the most financially damaging aspects of job separation, and an attorney can often negotiate coverage or reimbursement.

Reference Letters & Rehire Eligibility

Severance agreements frequently address:

• Whether the company will provide a neutral reference, a positive reference, or no reference
• Whether you are marked “ineligible for rehire,” which can quietly damage future job prospects

Negotiating reference language protects your professional reputation long after the paycheck ends.

When You Absolutely Need a Lawyer to Review the Agreement

You Are Being Terminated Suddenly

When termination comes out of nowhere, employers often hope fear will drive quick signatures. Sudden terminations may signal:

• The company is trying to limit liability
• Potential discrimination or retaliation
• Attempts to create pressure to sign immediately

You Reported Harassment, Discrimination, or Safety Issues

If you’ve raised concerns about unlawful behavior—harassment, bias, unsafe conditions, wage violations, or retaliation—your severance offer may be an attempt to quietly extinguish a legal claim.

A lawyer helps preserve and assess the value of those claims before they are waived.

You Recently Took Medical or Family Leave

Employees who took or requested FMLA leave are at high risk for retaliation. Many employers use severance agreements to mask unlawful terminations by offering money in exchange for silence.

An attorney examines whether the timing suggests FMLA interference or retaliation.

You Requested an ADA or PWDCRA Accommodation

If you’ve requested workplace accommodations or disclosed a medical condition, your termination may implicate disability-rights protections under the ADA or PWDCRA. Severance offers may be used to conceal discriminatory motives.

Legal review ensures disability-related claims are not prematurely waived.

Your Employer Mentions “Standard Agreement” or “Non-Negotiable Terms”

There is no such thing as a “non-negotiable” severance package.

Employers use this language to discourage pushback, but seasoned counsel can:

• Identify illegal or overreaching provisions
• Uncover employer weaknesses that increase your leverage
• Negotiate better pay, benefits, and fairer terms

What employers call “standard” is often simply best for them—not for the employee.

How Attorney Scott Batey Reviews & Strengthens Your Severance Package

Comprehensive Legal Risk Assessment

The first step is determining whether your severance offer is fair—or whether the employer is attempting to settle a far more valuable case for pennies on the dollar. Attorney Scott Batey evaluates:

• Whether you have discrimination, retaliation, or whistleblower claims worth significantly more than the offer
• The employer’s vulnerabilities, including patterns of misconduct, inconsistent treatment, or HR missteps
• Timing and motive, especially following complaints, medical leave, or accommodation requests

Financial & Structural Analysis of the Offer

A severance package must reflect the full impact of your job loss—not just a few weeks of pay. Scott reviews whether the offer properly compensates you for:

• Lost wages, including base salary and variable pay
• Lost benefits, such as health insurance, retirement contributions, and PTO
• Emotional damages, where appropriate under Michigan and federal law

He also compares your offer to Michigan industry norms for your role and experience level. If the employer’s offer is below standard—or clearly undervalues your claims—Scott positions you to negotiate a far more appropriate package.

Identifying Illegal or Unenforceable Terms

Severance agreements often contain provisions that look standard but violate state or federal employment laws. Scott identifies and removes:

• Overbroad non-competes that restrict your ability to work in your field
• Unlawful confidentiality or non-disparagement clauses, especially those preventing disclosure of discrimination or harassment
• Waivers that violate federal protections, such as ADEA timing rules or rights you cannot legally sign away
• Provisions that conflict with Michigan public policy, including attempts to silence victims or penalize lawful reporting

Strategic Negotiation With the Employer

Scott Batey’s negotiation approach combines deep legal knowledge with a clear understanding of how Michigan employers and their attorneys operate. He leverages:

• Decades of employment litigation experience, giving him insight into employer risk tolerance
• Direct, assertive communication, which employers respect and respond to
• Evidence-based negotiation, informed by your legal risk assessment and documentation

The goal is simple: maximize your severance payout while maintaining professionalism and credibility. This approach routinely produces materially better terms—more money, better benefits, and fewer restrictions.

Protecting Your Future Career

A severance agreement should protect your future, not limit it. Scott ensures the final agreement includes:

• Neutral or positive reference language, preventing quiet blacklisting
• Removal or softening of “no rehire” clauses, which can damage long-term opportunities
• Elimination of language that could negatively impact future employers’ perceptions

Common Red Flags in Michigan Severance Agreements

Employers frequently insert provisions that place employees at a disadvantage. You should pause immediately if your agreement contains:

• Waivers covering unknown or future claims, which are overly broad or unlawful
• NDAs designed to silence complaints about discrimination or harassment
• Non-compete clauses with excessive duration or geographic restraints
• One-sided enforcement clauses, allowing the employer to sue you but limiting your rights
• “No re-hire” provisions that restrict future employment in the company or related entities
• Short deadlines or pressure tactics, meant to push you into signing without legal review

Protect Your Future Before You Sign Anything

Your severance agreement is more than an exit document—it is a legally binding contract that determines your financial stability, your career options, and your ability to hold your former employer accountable. Once you sign it, there is no going back. That’s why taking the time to understand every clause, every waiver, and every implication is not just wise—it’s essential.

Attorney Scott Batey has spent decades representing Michigan employees in some of the most complex employment matters—wrongful termination, retaliation, discrimination, whistleblower claims, and more. He understands how employers evaluate risk, how they attempt to limit liability, and how they structure severance agreements to benefit themselves. More importantly, he understands how to turn that dynamic around to protect you.

Contact Batey Law Firm, PLLC

Attorney Scott Batey
30200 Telegraph Rd., Suite 400
Bingham Farms, MI 48025

Phone: 248-540-6800
Email: sbatey@bateylaw.com
Website: www.bateylaw.com