When associates are at-will employees, why do big law firms pay severance? Is that because the associate will take unemployment after being laid off, increasing the insurance rate for the law firm, or something else? The only reason I could think of was to avoid any harassment/discrimination claims, but I think insurance might be a part of it as well.

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Never been laid off but I would assume they ask you to sign a contract by which you waive the rights to your firstborn child in exchange for the severance.

likefunny

To get a release. Even if they’re not really worried about you suing them, it’s added comfort against even nuisance suits, and it’s cheap compared to the cost of hiring counsel to deal with even those claims.

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Yes. They want the release. So try to negotiate more severance.

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Def nothing to do with UI premiums

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Same reason companies pay severance and get a release.

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Release that includes non-disparaging clause, good will might be another factor for some partners that are understanding it’s hard to find a new job when you’re unemployed.

like

So they appear strong to the “market”, while inside they are hemorrhaging and doing stealth layoffs to protect PPP.

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Severance payments don’t help PPP. A firm using stealth layoffs to boost PPP fires underperforming associates (who aren’t profitable) without severance.

To get you to sign the waiver. Also it generally helps with recruitment/retention/morale to not treat people terribly.

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