Severance Agreement - Nebraska

SEVERANCE AND RELEASE AGREEMENT

(Nebraska – Single Employee Termination)

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Execution Block

1. DOCUMENT HEADER

Severance and Release Agreement (this “Agreement”) is entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between [EMPLOYER LEGAL NAME], a [STATE OF INCORPORATION] [corporation/LLC/etc.] (“Employer”), and [EMPLOYEE FULL LEGAL NAME] (“Employee”) (collectively, the “Parties,” and each a “Party”).

Recitals

A. Employee’s employment with Employer will terminate effective [TERMINATION DATE] (the “Separation Date”).
B. Employer desires to provide Employee, and Employee desires to accept, certain severance benefits conditioned upon Employee’s execution and non-revocation of this Agreement.
C. The Parties wish to mutually settle, fully and finally, any and all disputes between them, subject to the terms herein.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Parties agree as follows:

2. DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings set forth below. Defined terms appear in quotation marks throughout this Agreement.

“Agreement” has the meaning set forth in the preamble.
“ADEA” means the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621 et seq.
“Confidential Information” means all trade secrets and proprietary or confidential data or information of Employer, whether written, oral, electronic, or in any other form, including without limitation customer lists, pricing, marketing strategies, and product development information.
“Consideration Period” has the meaning set forth in Section 3.4(a).
“Covered Claims” has the meaning set forth in Section 3.2(a).
“Effective Date” has the meaning set forth in the Document Header.
“Employee” has the meaning set forth in the preamble.
“Employer” has the meaning set forth in the preamble.
“Parties” and “Party” have the meanings set forth in the preamble.
“Revocation Period” has the meaning set forth in Section 3.4(c).
“Severance Benefits” has the meaning set forth in Section 3.1.
“Separation Date” has the meaning set forth in the Recitals.

3. OPERATIVE PROVISIONS

3.0 Final Compensation

Employer will pay unpaid wages by the next regular payday or within two weeks after separation, whichever is sooner. Neb. Rev. Stat. § 48-1230(4)(a). Earned but unused vacation and other agreed fringe benefits will be handled under Neb. Rev. Stat. § 48-1229(4), (6) and the governing written terms. Final Compensation will be paid regardless of whether Employee signs this Agreement.

3.1 Severance Benefits

Subject to Employee’s execution of this Agreement on or after the Separation Date and expiration of the Revocation Period without revocation, Employer shall provide the following (collectively, the “Severance Benefits”):

a. Cash Severance: Lump-sum payment of [SEVERANCE AMOUNT] (the “Severance Payment”), less applicable withholdings, payable on the first regular payroll date following the expiration of the Revocation Period.

b. COBRA Subsidy: Employer will pay [X]% of the COBRA premium for Employee’s existing group health coverage for [NUMBER] months following the Separation Date, or until Employee becomes eligible for other group health coverage, whichever occurs first.

c. Outplacement Services: Employer shall provide up to [DOLLAR AMOUNT] of professional outplacement services, to be completed within [NUMBER] months following the Separation Date.

3.2 Mutual Release and Waiver of Claims

a. Employee Release. In exchange for the Severance Benefits, Employee knowingly and voluntarily releases and forever discharges Employer, its parents, subsidiaries, affiliates, predecessors, successors, assigns, and the past and present directors, officers, employees, and agents of each (collectively, the “Released Parties”) from any and all claims, causes of action, and liabilities, whether known or unknown, suspected or unsuspected, arising at any time prior to execution of this Agreement (“Covered Claims”). Covered Claims include, but are not limited to, claims under:
i. Title VII of the Civil Rights Act of 1964;
ii. the Americans with Disabilities Act;
iii. the ADEA and the Older Workers Benefit Protection Act, as amended (collectively, “OWBPA”);
iv. the Family and Medical Leave Act;
v. the Nebraska Fair Employment Practice Act; and
vi. any other federal, state, or local statute, regulation, or public policy, as well as common-law claims in contract or tort.

Employee does NOT release (1) claims arising after Employee signs this Agreement, (2) claims for workers’ compensation benefits, unemployment benefits, or vested retirement benefits, (3) rights to enforce this Agreement, or (4) any non-waivable statutory rights.

b. Employer Release. In exchange for Employee’s promises herein, Employer releases Employee and Employee’s heirs and assigns from any and all claims, causes of action, and liabilities of which Employer has actual knowledge as of the Effective Date, except for (i) claims arising from Employee’s intentional misconduct or fraud, (ii) claims to enforce this Agreement, or (iii) any claims that cannot be waived as a matter of law.

3.3 No Admissions

Nothing in this Agreement shall be construed as an admission by either Party of any wrongdoing, liability, or violation of law.

3.4 ADEA/OWBPA Compliance

a. Consideration Period. Employee acknowledges being advised in writing to consult an attorney prior to executing this Agreement and is granted [“21” OR “45”] calendar days from the date of receipt of this Agreement to review and consider its terms (the “Consideration Period”), pursuant to 29 U.S.C. § 626(f)(1)(F).

b. Knowing and Voluntary Waiver. Employee warrants that any decision to sign this Agreement before the end of the Consideration Period is knowing and voluntary and was not induced by Employer through fraud, misrepresentation, or a threat to withdraw or alter the offer contained herein.

c. Revocation Period. Employee may revoke this Agreement within seven (7) calendar days after it is executed (the “Revocation Period”) by delivering written notice of revocation to [EMPLOYER CONTACT & ADDRESS]. This Agreement shall not become effective or enforceable until the Revocation Period expires without revocation.

d. Specific Reference to ADEA. Employee expressly acknowledges that this Agreement includes a waiver of ADEA claims in compliance with 29 U.S.C. § 626(f).

e. Group Program Disclosure. If the 45-day period applies, Employer must provide at the beginning of that period a written disclosure identifying the decisional unit, eligibility factors and time limits, job titles and individual ages of eligible or selected employees, and individual ages of employees in the same job classification or organizational unit who were not eligible or selected.

f. Waiver Challenge. Nothing requires tender back of consideration or imposes a condition precedent, penalty, attorney-fee liability, damages, or another limitation that adversely affects Employee’s right to challenge the validity of the ADEA waiver.

3.5 Conditions Precedent; Taxes

a. Condition Precedent. Employer’s obligation to provide the Severance Benefits is conditioned only on timely execution and non-revocation; Final Compensation and other amounts already owed are not conditioned on this Agreement.

b. Taxes. Employee shall be solely responsible for any tax consequences arising from the Severance Benefits, except that Employer shall withhold amounts as required by law.

4. REPRESENTATIONS & WARRANTIES

4.1 Mutual Representations. Each Party represents and warrants that:
a. it has full legal authority and capacity to enter into and be bound by this Agreement;
b. the execution and performance of this Agreement do not violate any other agreement by which it is bound; and
c. it has had an opportunity to consult with legal counsel of its choosing.

4.2 Employee Acknowledgments. Employee further represents that:
a. Employee has returned (or will return within [NUMBER] days) all Employer property;
b. Employee has identified any known unpaid-compensation or benefit issue here: [________________________________]; and
c. this disclosure does not waive protected agency rights or delay payment of amounts already owed.

4.3 Survival. The representations and warranties shall survive the execution of this Agreement and the payment of Severance Benefits.

5. COVENANTS & RESTRICTIONS

5.1 Confidentiality of Employer Information. Employee shall protect legitimate trade secrets and non-public proprietary information. This Section does not restrict truthful testimony, government reports, protected communications, discussions of wages or working conditions protected by law, or other protected conduct. The Agreement itself is not designated categorically confidential.

5.2 Non-Disparagement. During [TIME PERIOD], neither Party shall knowingly make a false statement of fact intended to harm the other Party’s reputation. This Section does not restrict truthful statements, government communications, whistleblower reports, testimony, discussions of wages or working conditions protected by law, or other protected conduct.

5.3 Cooperation. Employee agrees to reasonably cooperate with Employer in any pending or future investigations, litigation, or administrative proceedings relating to matters of which Employee has knowledge. Employer shall reimburse reasonable out-of-pocket expenses incurred in providing such cooperation.

5.4 Compliance Monitoring. Employee shall promptly notify Employer in writing of any subpoena or court order that would require disclosure of Confidential Information.

6. DEFAULT & REMEDIES

6.1 Events of Default. A Party shall be in default if it materially breaches any provision of this Agreement and fails to cure such breach within ten (10) days after written notice specifying the breach.

6.2 Lawful Remedies. A Party may pursue lawful contract remedies for a proven material breach. No remedy creates a release-challenge penalty, requires repayment merely for filing or participating in an agency matter, delays amounts already owed, or creates a prevailing-party fee shift.

7. RISK ALLOCATION

7.1 No Employee Risk-Shifting. This Agreement does not impose employee indemnity, a liability cap, a force-majeure excuse for payment, a severance clawback, or a penalty for a good-faith challenge to the release.

8. DISPUTE RESOLUTION

8.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nebraska and applicable federal employment laws, without regard to conflict-of-laws principles.

8.2 Forum. An action concerning this Agreement may be filed in a Nebraska state or federal court with subject-matter and personal jurisdiction and proper venue.

8.3 Arbitration. No arbitration clause is included. If selected, use a separately reviewed addendum addressing formation, costs, discovery, remedies, and governing law.

8.4 Jury Trial. No predispute jury waiver is included in this template.

9. GENERAL PROVISIONS

9.1 Amendment; Waiver. This Agreement may be amended only by a written instrument signed by both Parties. No waiver shall be effective unless in writing and signed by the waiving Party.

9.2 Assignment. Employee may not assign or delegate any rights or obligations under this Agreement. Employer may assign this Agreement to any successor in interest.

9.3 Successors & Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.

9.4 Severability; Reformation. If any provision is held invalid or unenforceable, such provision shall be reformed to the minimum extent necessary to render it enforceable, and the remaining provisions shall remain in full force and effect.

9.5 Entire Agreement. This Agreement constitutes the complete and exclusive statement of the agreement between the Parties with respect to the subject matter hereof and supersedes all prior or contemporaneous oral or written agreements.

9.6 Counterparts; Electronic Signature. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. Signatures transmitted electronically (e.g., PDF or via reputable e-signature platform) shall be deemed originals for all purposes.

9.7 Headings. Section headings are for convenience only and shall not affect interpretation.

10. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates set forth below.

Sources and References

• 29 U.S.C. § 626(f)
• 29 C.F.R. § 1625.22
• 29 C.F.R. § 1625.23
• 29 U.S.C. § 157
• 29 U.S.C. § 1053
• 29 U.S.C. § 1161
• 29 U.S.C. § 2615
• 42 U.S.C. § 2000e-2
• 42 U.S.C. § 12112
• Neb. Rev. Stat. § 48-1229
• Neb. Rev. Stat. § 48-1230
• Neb. Rev. Stat. § 48-1104