Question on employment retention agreements

[NewJeffCT]

My wife's company has had some dramatic changes in management in recent weeks. However, my wife's job seems to be okay for now, and they've even offered her a retention package to stick around for the next year because they canned her boss and left nobody else competent in her department.

At the end, however, it has the following statement:

I, the undersigned, in consideration of receiving a retention package set forth in the Confidential Retention Package Memorandum dated December 15, 2011, hereby release and discharge The Company, its parent and affiliated companies, and their respective officers, directors, representatives, employees and successors and assigns from any and all rights, liabilities, claims, grievances, demands, damages, unfair labor practices and causes of action, known or unknown, arising out of or in any manner connected with my employment relationship with The Company or the termination of that employment, except claims for workers compensation benefits, claims for vested pension benefits and claims that can not be released as a matter of law.

I'm not a lawyer, but I believe by signing that, it would mean she gives up her right to sue the company over anything related to her employment. Anything I'm missing?

[Chan790]

1. I think you might want to discuss this in a consultation with a lawyer.

I mean generally that is my reading of it as-well, but that reads like standard boilerplate waiver-of-indemnity that gets tossed into contracts willy-nilly so I don't know how much is being given-up there; also I'm thinking that you might have some leeway on substitution of language here because it is cut-and-paste boilerplate. It comes down to how badly they want to keep her and whether she's irreplaceable. (My mother has been offered such agreements before and turns them down because she's 1 of about 200 people in the country who can do her job...not signing gives her more leverage.)

As to whether to sign it, is the retention package good? If the money's great but she doesn't want to be stuck under such an onerous agreement (even if it says "I promise not to leave for other employment for __ weeks/months/year" ), she can always take it and immediately start preparing for her post-employment-there, putting the time to good use: working on the resume*, taking trainings or certifications outside of work that might advance her career (anything from an accounting class to Spanish or ASL to something industry-specific.) and taking informational interviews or practicing her answers to expected questions about past experience and career goals.

*- I always recommend Martin Yate's Knock Em Dead series to job-seekers because it will advance their career and job-search significantly...but Yate's is a time-intensive approach best taken while employed.

[NewJeffCT]

2. It's a monthly bonus

If she sticks around for a year, paid out quarterly. Nothing is holding her to the job, but if she leaves, she would be required to pay back the previous six months of bonuses.

[obamanut2012]

3. No one can supercede State and Federal laws

Does she work in CT or NY? they have strong State labor laws there. I'd call up an attorney about that.

Have her sign, and then start looking for another job, if worse comes to worse.

[NewJeffCT]

4. She has been looking for a while

And, has some pretty good opportunities that may be coming. (She currently works in NJ)

However, in this economy, you can't really count on anything until the offer is in your hands.

Her problem is that her boss was canned, and he was the person that hired her into the company 3 1/2 years ago. So, she is probably viewed as part of the now fired guy's team.

[obamanut2012]

5. I understand, and I wish her luck

NJ, at least, is known for having good labor laws.

[Patiod]

6. Lucky NJ

I was laid off several years ago, and had a huge issue over the non-compete with my former boss (may you rot in hell Scott).

I talked to 6-7 different lawyers, and they all said "is the company in NJ? No? Pennsylvania? Well, you're out of luck then. PA is very pro-business, so you're screwed. If you were in NJ, you might have a case."

Great.

[obamanut2012]

8. yup

[DebJ]

11. I moved from Maryland to Pennsylvania.

Yes, Pa is totally pro-business. The irony that makes me sardonically smirk
is that all the jobs are in pro-people Maryland. Wanna job? Go Blue State!

[NewJeffCT]

7. Hopefully, Christie hasn't changed that too much

I'd be leery, though.

[obamanut2012]

9. Here's vibes that she gets something else great very soon

#fingerscrossed.

[saras]

10. Personally I can't imagine ever signing such an open-ended contract.

Parent and affiliate companies? Is it owned by someone who is owned by someone who is owned by a multinational? Do you want to give up the right to sue ANY of those companies, for ANYTHING related to employment?

"Known or unknown"? So whatever they do in the future, they're off the hook? Anything?

I guess I've just never been that desperate for money, even when homeless and living on the street.

[NewJeffCT]

12. well

she can leave whenever she wants, but she would need to repay up to 6 months of retention bonus if she leaves before a year is out.