SoccerandSales

Account Executive

NDA for Sevvy

Savages,

I had a friend in an SDR role get laid off due to 'SVB issues and market changes' or as the rest of us call it, 'we don't know how to properly scale an organization'. They told him that he would need to sign an NDA making it that he would not be able to share that he was laid off publicly in exchange for a two weeks severance. Personally, that feels pretty ridiculous, but wanted to see if anyone on here had experienced something similar?

☂️ Layoffs

25 comments

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braintank

Politicker

Enterprise Account Executive

that's illegal: https://www.cnn.com/2023/02/22/success/severance-agreements-rule-change-from-nlrb/index.html

detectivegibbles

Politicker

Sales Director

And this is why I love the war room.

I learn something new every day and stand corrected. Thanks for sharing.

braintank

Politicker

Enterprise Account Executive

Recent development. Glad I could help!

Business Development Executive

That's awesome. I had to sign a non-disparagement agreement to get my severance and commissions due. Rethinking now if I tell the truth about the company on GlassDoor.

poweredbycaffeine

WR Lieutenant

☕️

I’d forfeit sevvy and EXPOSE THEM

Also, depending on the state, that exchange is illegal.

BestCase

Valued Contributor

Account Executive

Get the sevvy, then expose them. They can sue you but no company is going to write a check to a lawyer over 2-weeks wages and some sticks-n-stones on the internet.

poweredbycaffeine

WR Lieutenant

☕️

Best case, indeed!

SoccerandSales

Big Shot

Account Executive

Thought about this too, but he can't afford to honestly

poweredbycaffeine

WR Lieutenant

☕️

Well, it’s illegal for them to force him to sign it.

CuriousFox

WR Officer

🦊

He doesn't need to sign shit.

detectivegibbles

Politicker

Sales Director

Was your friends severance written into the initial offer of employment?

Outside of that, I don't believe a company is required to pay a severance to begin with so it may make sense to take the money and sign.

SoccerandSales

Big Shot

Account Executive

This was my initial thought, but now need to dive deeper into braintank's post

detectivegibbles

Politicker

Sales Director

Looks like it was relatively recent ruling too.

Justatitle

Big Shot

Account Executive

There has to be some type of legislation against this, reason for departure and such. Like they're only hurting that rep in terms of applying for their next role, they should be able to modify the NDA to be able to share that they were laid off with potential new organizations

SoccerandSales

Big Shot

Account Executive

Agreed. Still waiting to review the actual document.

HVACexpert

Politicker

sales engineer

What a load of horseshit.

punishedlad

Tycoon

Business Development Team Lead

Two weeks sevvy ain't shit and he should absolutely drag them publicly for this.

oldcloser

Arsonist

💀

@braintankftw. Shady? Yep. Illegal? I didn't know either.

rharris415

Contributor

Founder

Non-disclosure agreement is illegal
Non-disparagement agreement is illegal

If they force, make them bi-directional. They can't say anything about you either, and I would even say, they have to put in writing they will not provide any backdoor reference checks.

Always check with a lawyer and your state laws too.

The issue is how hard does someone want to fight it? It can take a ton of time and energy.

Additionally, if you need the money to live and pay bills then we may have to take it.

That being said, your friend has options.

In addition to non-disclosure agreements so are non-disparagement agreements. It's part of the same ruling mentioned below.

Here is what I recommend to people...

Always negotiate severance and here's how to do it.

Yes, you can actually negotiate a severance. In most cases, yes you can, because you have nothing to lose. After all, you are in sales. Maybe you’re an SDR/BDR, Account Executive, or Vice President of Sales. It’s in your dna. And it’s ok.

It does not mean your company will, but you can and should try.First, if you need the severance to pay bills, eat, and live, pay for your insurance. It’s ok to accept it as is. Also, please check with a lawyer in your state as some things may be different.

Here are some tips to keep in mind, especially around your mindset:

1. The severance letter is written by their lawyers to protect them 100%, always. No matter what they tell you. Which is also to your advantage. Since they are not in sales, and come in with a selfish mentality, you can use that against them. Kinda like martial arts, use the opponent’s momentum against them.

2. Severance letters are rarely rescinded like job offers. This is because of the “non-disparagement” clause. As a sales person, keep this in your back pocket.

3. There will be a clause somewhere in the document stating that you are not to discuss, disclose, disparage the company, its officers, etc. It will be one sided, meaning they are saying they can say anything they want about you.

4. They will use words and phrases like, “fair, flexibility, and sorry we have to do this” in order to make themselves the victim and get you to feel guilty. This is similar to the prospect attempting to make the salesperson feel guilty when closing a deal.

5. No matter what they say, no matter what state, you are generally NOT legally obligated to sign anything. Please check with your state of course.

6. If your severance is a crappy offer, check to see what your state unemployment laws are.
Keep in mind, they are really attempting to manipulate you and pay you to remain silent. The worse the package, the more this is the reason.
Claiming that unused vacation is part of your severance may not be true. Even if allowed, they are not “doing you a favor”, they are manipulating you.

7. Check with your state laws/lawyer because some states require they pay you for unpaid vacation. Severance is often different.

8. Insurance – Always ask for 90-180 days, even if they won’t pay you additional cash.
When they hand you the offer/letter, say nothing for a very long time. Take deep breaths. After you read it, pause and look them in the eyes, and play the staring game. It makes them uncomfortable.
Wait for them to speak first. Give them nothing when they ask a question other than, “I need to review this.”

DO NOT say, “Thank you, I need to review this.” Are you really thankful?

9. The deadline they request for you to sign is 100% arbitrary in most cases. Some states do require a minimum time to give someone before signing. Again, check with your state laws/lawyer, etc. They are giving you a deadline because they want to nip this in the bud. They want to “get it off their to-do list”, and if there are many people, they are trying to streamline.

10. Yes, in some cases they are trying to “hug you out the door”. This is good. If the severance is a few months and it may include health insurance. In these moments, we think you should accept this. 90+ days is often pretty good.

11. Always ask for an extra 48 hours. When they ask why, you simply say, “I need the time to process everything that is going on, it’s a bit emotional, you know?.” It is ok if they don’t give it.

Things to negotiate:

1. Always ask for 6 months severance.

2. Always ask for 6 months insurance.

3. Always ask for a letter of recommendation (you write it, and they sign it).

4. Always ask that the non-disclosure/non-disparagement clause needs to be bi-directional.

Now, in most cases they will say no to everything.

Your ace in the hole is the mutual non-disparagement agreement. Remember, they put it in there to protect their reputation.

Well, now this reputation is worth much more than the package they offer you.

And again, check the employment laws in your state.

Here’s one thing to know. Severance packages are rarely “rescinded” unlike job offers.

With all of this in mind, when you start to negotiate, here are the things to consider saying.

You – “I appreciate you taking the time to create this package and I’d like to share some some thoughts if that’s ok?”

Them – “Of course”

You – “Well, the severance package you are offering does not feel fair. Fair would be 6 months pay as well as 6 months insurance. Additionally, the non-disparage agreement must be mutual. And I feel a letter of recommendation and LinkedIn endorsement would be the most fair.” (Use the word must)

Them – “Well, we feel this is fair and it’s all we will offer. And the non-disparagement agreement is there so you understand how seriously and important it is for us to support you with this package.”

You – “Thank you, I am confused, the following deals are in the pipeline and set to close. I put them there, I qualified them, and they will close, because of my work specifically. That commission is worth ____. Which is more than your severance package. How would you call that fair?”

Them – “Well, this is what your comp plan says” or something similar.
You will notice them starting to squirm, this is good for you.

You – “Ok, well, then back to the non-dispargement part. Essentially, what you are doing is attempting to bribe, manipulate, and buy-off my silence, right?I mean, you’re trying to protect the company reputation from potential negatives.” (Say potential negatives, this is not suggesting you are threatening them, It’s just vague enough.)

Them – “Uhhh, well, um…” They will now be really uncomfortable. NOBODY has ever said this to them, so they are 100% not even close to being prepared to answer with any sense of logic. Most likely, they will be fake angry with you. In a few instances, they may actually “threaten you”, which could become another thing for you to use.

You – “Uh, I am confused, you seem a bit frustrated. I am confused by this, I mean, you hired me to be a sales person, and to handle negotiations, surprised you’re so surprised by this conversation. I mean your lawyers wrote this, your executive team reviewed, and approved it, and it seems like nobody has role-played out the scenario.Again, you hired me as a sales person, this is what you hired me to do.I respect that you need to do what’s best for the company and its reputation. Well, I am my own company too, and I need to protect my reputation as well. How do you not see this as a fair ask?”

Them – “Uhh, umm… Well, this is blah blah blah.”

You – “Well I am a bit disappointed and shocked you seem to be angry with me for doing exactly what you are doing. Again, how is that fair?”

You – Pause, wait, take 3 deep breaths, yes 3 (you will need them). If they speak while you are breathing, continue breathing.

You – “Ok, well the way I see it, you have the following options:
You increase the severance package and change the non-dispargement agreement and give me a letter of recommendation.
You can keep the severance the same and still change the non-disparagement and provide a letter of recommendation and LinkedIn endorsement.

Nobody signs anything.

You - What would you like to do?”

Yes, its ok to negotiate to 5, 4, 3 months. Yes, it’s ok to settle for just severance and no insurance. Yes, it’s ok say no to severance and take insurance. Which is actually cheaper for them. Yes, it’s ok to give up the letters of recommendation and LinkedIn endorsements, however that should be easy to get from your immediate supervisor for later.

SoccerandSales

Big Shot

Account Executive

Thorough, and extremely helpful. Thanks!

RandyLahey

Politicker

Account Manager

Brutal. Sounds like thats fucking illegal. Hopefully Sevvy bounces back.

countingmyinterest

Politicker

Account Executive

Illegal and unenforceable. Sign the sevvy, then worry about enforcing the NDA. States like CA and NY are SO employee friendly, they wouldn't do anything.

Companies would only go after you if you are a direct harm to their business.

thefox

Director of Sales

I experienced the same thing, but uf also had a clause that we couldn’t tell internal employees either. Basically they didn’t want it to hit the press nor did they want employees to know a layoff had occurred. Completely insane and hypocritical.

Maximas

Tycoon

Senior Sales Executive

Even if it stayed unknown and he remained silent, it wouldn't be forever, soon the bad smell should spread.
Thanks for @braintankfor letting us know it became illegal!

Sunbunny31

Politicker

Sr Sales Executive 🐰

All over a paltry two weeks severance? Seriously?

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SoccerandSales

NDA for Sevvy

25 comments

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