This post was originally published on this site
Question: When crafting a severance agreement, should you follow the guidelines of the state the employee resides/works in or the state where the company is incorporated?
Answer: Before addressing the specific question about which state’s laws would apply for the enforcement or consideration of a severance agreement, let’s address the importance of such agreements in the first place. Certainty is vital in all business operations, and discharging employees is no exception.
When you are discharging an employee from your company, it may be beneficial in many instances to provide a severance package. While the employee may have no potential