California severance agreements are built to protect both central parties, employer and employee, through an outline of terms related to the employee’s departure from the company. However, as unfortunate as it may be, sometimes severance agreements contain illegal provisions, especially concerning personal injury claims, a topic strictly regulated by California Law. Severance terms that attempt to waive or restrict the rights of employees can be unlawful and unenforceable. Employees who sign such agreements, especially when containing unlawful personal injury claim-related conditions, are at a serious disadvantage if they are unaware of their rights. Employees can benefit from understanding the most common illegal provisions employers may insert in severance agreements, the relevant California laws that protect you, and practice steps to ensure your rights remain intact.
What Makes Severance Terms Related to Personal Injury Claims Illegal?
California has a specific set of labor codes to protect employees from unfair or misleading severance provisions, especially regarding personal injury. Illegal severance terms often limit or completely waive an employee’s rights to pursue compensation for injuries suffered while on the job or related to their job duties. Under California’s Labor Code, employees cannot waive their right to seek compensation for workplace injuries, regardless of what may be included in a severance package.
Personal Injury claims are unique because they fall under a distinct area of law separate from standard employment claims. If your employer includes a clause in a severance agreement that requires you, the employee, to waive potential personal injury claims, this may violate labor laws, prohibiting the restriction on claims for workplace injuries or unpaid wages. You have the right to pursue workers’ compensation claims, and any document attempting to block you from doing so would likely be unlawful and invalid.
Identifying Common Unlawful Clauses in Severance Agreements
Several types of provisions commonly found in severance agreements related to personal injury claims are considered illegal under California law. Here are some specific clauses to watch out for:
- Waivers of Personal Injury Claims Employers may attempt to include provisions that waive any claims for injuries sustained during employment. However, California courts typically rule such waives as unenforceable. Separation agreements cannot include language barring you from pursuing legal action for past or potential injuries, including any bodily harm resulting from accidents, occupational hazards, or unsafe working conditions.
- Broad Release of All and Unknown Claims Severance agreements often have a general “release of claims” clause that covers known and unknown claims. While California law does allow for broad release clauses, specific claims are protected and cannot be waived. For example, under California Labor Code § 2804, an employee cannot waive their rights to recover damages for unpaid wages, and similarly, personal injury claims tied to employment cannot be released simply by signing a severance agreement.
- Confidentiality Clauses that Cover Workplace Hazards Some employers might include confidentiality agreements that prohibit employees from discussing workplace conditions like safety hazards or on-site injuries. Historically, such clauses prove problematic because they can prevent employees from sharing vital information about unsafe work conditions. However, employees in California have the right to disclose, discuss, and report safety violations or workplace hazards, and a confidentiality provision should not interfere with that.
- Non-Disclosure Agreements Limiting Reporting to Agencies Non-Disclosure agreements (NDAs), in severance agreements, often contain language that denies workers the power to file objections or cooperate with governmental agencies like California’s Occupational Safety and Health Administration (CalOSHA). However, there are regulations in place prohibiting NDAs from restricting an employee’s ability to report unsafe work conditions or injuries to regulatory agents. If a severance agreement is found to prevent an employee from reporting a workplace injury or a hazard in their work environment, this provision would be unenforceable and may even venture into being illegal.
- Misclassification of Employment Injury Claims as “Settled” Another tactic seen frequently is employers labeling injury claims as settled within a severance agreement. The approach can lead to workers believing they have no room to seek additional damages for any future health impact from a previous work injury. Claims for future medical expenses due to workplace injuries should not be preemptively closed without a proper legal settlement process through California’s workers’ compensation system.
- Compensation Agreements for Medical Expenses Not Fully Covered Severance agreements sometimes include clauses stating that the employer has already covered all necessary medical costs and that no additional compensation is obtainable. Yet California law promises employees can seek compensation for needed medical treatment for workplace injuries. If a clause serves to hinder this right, it is probably illegal.
Protecting Your Rights When Reviewing Severance Agreements
When reviewing a severance agreement that contains potentially unlawful clauses, it’s imperative to know your rights and act accordingly to protect them. Conferring with an attorney experienced in employment law is invaluable as they can pinpoint the questionable terms, dissect the legal jargon, and see right through the vague blanket wording–that could put you in what feels like an impossible situation, especially concerning personal injury claims, and guide you through negotiation options. Familiarizing yourself with California’s labor code and protections, like those in labor Code sections 2804 and 206.5, is also crucial–employers cannot legally require you to waive these rights. If illegal terms persist, you do have options from negotiating with your employer, declining to sign, or, if necessary, filing a complaint with the California Labor Commissioner’s Office. California provides resources to support employees facing these challenges, especially in cases involving personal injury claims.
Remember to stay vigilant when it comes to safeguarding your rights and future. Contact a seasoned California employment attorney by calling 909-884-6451 for a free and confidential consultation. By proactively recognizing and addressing illegal provisions, you can secure a fair and lawful agreement that upholds your interests and welfare.
