Close
Updated:

Can A Severance Package Prevent Me From Getting Long Term Disability?

The Severance package offered by your employer may include language that prevents you from being able to pursue either a short or long term disability benefit claim. Long term disability attorneys Cesar Gavidia and Gregory Dell discuss the issues to watch out for when reviewing a severance agreement.

When presented with a severance agreement, an employee should always consult with the appropriate lawyer. We also discuss a recent Sun Life disability case from New York in which a claimant got bad advice from an inexperienced lawyer and signed a severance agreement which waived her rights to a $1.25 million long term disability claim.

  • In the standard severance language you are usually waiving your right to long term disability benefits
  • An example of a disability lawsuit against Sun Life that the court dismissed because the claimant waived the right to sue in her severance agreement
  • A specific “carve out” provision in your severance agreement will protect you from waiving any rights under your short or long term disability plan
  • This claimant lost the ability to receive $1.5 million in disability benefits as a result of accepting a $25,000 severance that waived her LTD rights
Contact Us