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Deciding whether to offer an individual employee or groups of employees a severance agreement requires an in-depth analysis of each circumstance and careful consideration of numerous factors. While federal and state law impose specific requirements on employers, severance agreements can vary significantly depending on job title, length of service, employment agreement, and pay level.
The post-recession U.S. economy is also a factor in severance pay practices because some companies are still shedding employees. According to the Bureau of Labor Statistics, millions of workers were still being laid off in 2012. Determining best practices during these difficult periods for employers and their workers is a continuing struggle.
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