Severance Agreement - Nevada

SEVERANCE AND MUTUAL RELEASE AGREEMENT

(Nevada – Comprehensive Template)

TABLE OF CONTENTS

1. Article I Definitions
2. Article II Consideration & Severance Benefits
3. Article III Mutual Release of Claims
4. Article IV Representations & Warranties
5. Article V Covenants & Restrictions
6. Article VI Default; Revocation; Remedies
7. Article VII Risk Allocation
8. Article VIII Dispute Resolution
9. Article IX General Provisions
10. Execution Block

DOCUMENT HEADER

SEVERANCE AND MUTUAL RELEASE AGREEMENT (this “Agreement”), dated as of [Effective Date] (the “Effective Date”), is entered into by and between [Legal Name of Employer], a [State of Incorporation] [corporation/LLC] with its principal place of business at [Address] (“Employer”), and [Employee Name], an individual residing at [Address] (“Employee,” and together with Employer, the “Parties,” each a “Party”).

RECITALS

A. Employee’s employment with Employer will terminate effective [Termination Date] (the “Termination Date”).
B. Employer desires to provide, and Employee desires to accept, certain severance benefits in exchange for the mutual promises and releases contained herein.

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

ARTICLE I

DEFINITIONS

For purposes of this Agreement, capitalized terms have the meanings set forth below. Defined terms appear alphabetically.

1.1 “ADEA” means the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621 et seq.

1.2 “Consideration Period” has the meaning set forth in Section 3.4(a).

1.3 “Confidential Information” means all non-public information regarding Employer and its Affiliates, including trade secrets, business plans, financial data, customer lists, and proprietary technology, whether written, oral, electronic, or otherwise.

1.4 “Covered Claims” has the meaning assigned in Section 3.2.

1.5 “OWBPA” means the Older Workers Benefit Protection Act, 29 U.S.C. § 626(f).

1.6 “Release Effective Date” has the meaning set forth in Section 3.4(c).

1.7 “Severance Amount” means [Dollar Amount], less standard payroll deductions and withholdings.

1.8 “Severance Period” means the period commencing on the Release Effective Date and ending [Number] months thereafter.

ARTICLE II

CONSIDERATION & SEVERANCE BENEFITS

2.1 Severance Payment. Subject to Employee’s timely execution and non-revocation of this Agreement, Employer shall pay Employee the Severance Amount in [lump sum/installments pursuant to Employer’s regular payroll schedule].

2.2 COBRA/Health Benefits. Employer shall [pay/continue] Employee’s group health insurance premiums under COBRA for the Severance Period, subject to applicable plan terms.

2.3 Outplacement Assistance. Employer shall provide [describe services] at a cost not to exceed [$____].

2.4 Final Compensation. If Employer discharges Employee, earned and unpaid wages and compensation are due immediately under NRS 608.020. If Employee resigns, final compensation shall be paid within the period required by NRS 608.030. Unused paid leave is payable only if an applicable contract, policy, or agreement requires payout; NRS 608.0197(1)(i) permits, but does not generally require, separation payout. Final Compensation is due regardless of whether Employee signs this Agreement.

2.5 Additional Consideration. The Severance Benefits exceed anything of value to which Employee is already entitled and are separate from Final Compensation.

ARTICLE III

MUTUAL RELEASE OF CLAIMS

3.1 Mutual Release. Subject to Section 3.3, each Party, on behalf of itself and its predecessors, successors, assigns, agents, and representatives, fully and forever releases and discharges the other Party and its Affiliates and current/former officers, directors, employees, and agents (“Released Parties”) from any and all claims, liabilities, demands, and causes of action of any kind, whether known or unknown, based on acts occurring on or before the date Employee signs this Agreement (collectively, “Covered Claims”).

3.2 Scope of Employee Release. Covered Claims include, without limitation:
(a) claims arising under federal, state, or local employment, labor, civil rights, or wage-hour laws, including Title VII of the Civil Rights Act, the ADEA, the Americans with Disabilities Act, the Family and Medical Leave Act, the Nevada Equal Employment Opportunity laws, and the Nevada wage statutes;
(b) claims for breach of contract, wrongful termination, retaliation, whistleblowing, emotional distress, or defamation; and
(c) any other statutory or common-law claims relating to Employee’s employment or separation.

3.3 Exclusions and Protected Activity. Nothing in this Agreement releases claims arising after Employee signs, rights to enforce this Agreement, unemployment or workers’ compensation rights, vested plan benefits, or rights that cannot lawfully be waived. Nothing restricts Employee from communicating with or participating before a government agency, making protected whistleblower disclosures, discussing wages or working conditions protected by 29 U.S.C. § 157, or exercising immunity under 18 U.S.C. § 1833(b).

3.4 OWBPA Compliance.
(a) Consideration Period. Employee is hereby advised to consult with legal counsel and is granted [21/45] days (“Consideration Period”) to review, consider, and decide whether to sign this Agreement.
(b) Revocation Period. After signing, Employee may revoke this Agreement within seven (7) calendar days. Any revocation must be in writing and delivered to [Employer Contact] before midnight on the seventh day.
(c) Release Effective Date. This Agreement becomes effective on the eighth (8th) day after Employee signs, provided Employee has not revoked (“Release Effective Date”).
(d) Knowing and Voluntary. Employee acknowledges that (i) this release is written in plain language, (ii) Employee understands its terms, (iii) Employee is receiving consideration beyond that to which Employee is otherwise entitled, and (iv) nothing herein waives future claims under the ADEA.
(e) Group Program Disclosure. If the 45-day period applies, Employer must provide at the beginning of that period the decisional-unit, eligibility, time-limit, job-title, and age disclosures required by 29 U.S.C. § 626(f)(1)(H).
(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. 29 C.F.R. § 1625.23.

ARTICLE IV

REPRESENTATIONS & WARRANTIES

4.1 Mutual Representations. Each Party represents that:
(a) it has full authority and capacity to enter into and perform this Agreement;
(b) entering into this Agreement does not violate any other agreement or legal obligation; and
(c) it has not assigned or transferred any Covered Claim.

4.2 Employer Representations. Employer represents that all wages due to Employee through the Termination Date have been, or will be, paid in accordance with NRS 608.

4.3 Employee Representations. Employee represents that Employee has returned or will return Employer property as agreed and has identified any known unpaid-compensation or benefit issue here: [________________________________]. This disclosure does not waive protected agency rights or delay amounts already owed.

4.4 Survival. All representations and warranties survive the Release Effective Date for the applicable statute of limitations period.

ARTICLE V

COVENANTS & RESTRICTIONS

5.1 Confidentiality. 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, 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, or other protected conduct.

5.3 Cooperation. Employee shall cooperate reasonably with Employer in any pending or future investigations or litigation relating to matters within Employee’s knowledge. Employer shall reimburse reasonable out-of-pocket expenses incurred in providing such cooperation.

5.4 Post-Termination Restrictive Covenants. No noncompetition or non-solicitation covenant is included. Any separate covenant must be reviewed under current Nevada law, including NRS 613.195 and its special rule for a reduction in force, reorganization, or similar restructuring.

ARTICLE VI

DEFAULT; REVOCATION; REMEDIES

6.1 Events of Default. A Party is in default if it materially breaches this Agreement and fails to cure within ten (10) business days after written notice, if curable.

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 Final Compensation, or creates a general prevailing-party fee shift.

ARTICLE VII

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.

ARTICLE VIII

DISPUTE RESOLUTION

8.1 Governing Law. This Agreement is governed by and construed in accordance with the laws of the State of Nevada 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 Nevada 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.

ARTICLE IX

GENERAL PROVISIONS

9.1 Amendment & Waiver. No amendment or waiver of any provision of this Agreement is effective unless in writing and signed by both Parties. A waiver is effective only for the specific instance and purpose given.

9.2 Assignment. Employee may not assign or delegate any right or obligation under this Agreement without Employer’s prior written consent. Employer may assign this Agreement to any successor or Affiliate.

9.3 Successors & Assigns. This Agreement binds and benefits the Parties and their respective heirs, executors, administrators, successors, and permitted assigns.

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

9.5 Entire Agreement. This Agreement, together with any documents incorporated by reference, constitutes the entire agreement between the Parties and supersedes all prior agreements, written or oral, concerning the subject matter.

9.6 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which is deemed an original, and all of which together constitute one instrument. Signatures transmitted electronically or by facsimile are binding as originals.

9.7 Interpretation. Headings are for convenience only and do not affect interpretation. The Parties participated jointly in negotiating this Agreement; no presumption or burden of proof arises favoring or disfavoring either Party by virtue of authorship.

EXECUTION BLOCK

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

[Optional Notary Acknowledgment]

Sources and References

• 29 U.S.C. § 626
• 29 U.S.C. § 157
• 18 U.S.C. § 1833
• 29 C.F.R. §§ 1625.22-1625.23
• Nevada Revised Statutes Chapter 608
• Nevada Revised Statutes Chapter 613

END OF TEMPLATE