Maryland Severance After a Hostile Work Complaint

 Posted on October 30, 2025 in Employment Law

If you are a Maryland employee who reported harassment or a hostile work environment, your employer’s next move may determine whether your situation will end with accountability or silence. Some employers will offer severance pay as a means of "encouraging" a quick, quiet separation.

While a severance package can provide financial relief, it can also include a broad legal release that diminishes your right to pursue a claim under the Maryland Fair Employment Practices Act or Title VII of the Civil Rights Act. Before you sign anything, it is important to understand how severance works in this type of case, and why it could actually protect your employer more than yourself. A Howard County, MD employment law attorney can help ensure your rights and your future are properly protected.

Why Does an Offer of Severance Often Follow an Employee Complaint?

When an offer of severance follows an employee complaint, it is often intended to mitigate legal risks, protect the company's reputation, and manage a potentially contentious employee exit. The severance agreement is typically offered in exchange for a release of claims that legally prevents the former employee from suing the company.

Severance offers like this are primarily a way of managing risk rather than an act of goodwill. Defending against a lawsuit for discrimination, retaliation, harassment, or wrongful termination can cost a company tens of thousands of dollars, even if the case is not particularly strong. A severance offer is much less expensive.

Nearly all severance packages include a legal release of claims that the employee must sign to receive the payout. The employee waives his or her right to sue the company for any and all past actions, including those related to the initial complaint, in return for a financial incentive. In short, the employee is being paid to "go away quietly."

Constructive Dismissal and How the Employee Exit Interview Can Potentially Halt Future Claims

If an employee complains about a hostile work environment or discrimination and then resigns, he or she may have a future constructive dismissal claim.  A constructive dismissal claim is a legal argument that an employee’s resignation was not voluntary, but was forced by intolerable working conditions. The employee essentially claims he or she was "fired," in a way that they had to quit, leading to a wrongful termination claim.

Employers often seek to avoid this by "managing" the employee exit interview. Offering a generous severance package to the employee can help ensure a smooth transition by providing a financial incentive while the employee looks for a new job. The company can sever the employment relationship while minimizing the risk of future issues. An employee with a thorough understanding of the process has some negotiating leverage but should always consult an employment lawyer.

What is Typically Found in a Post-Complaint Employment Severance Agreement?

Employers facing a potential complaint from an employee are likely to include the following in the post-complaint severance agreement:

• A release of all claims, including discrimination, retaliation, wrongful termination, and emotional distress.
• A confidentiality clause
• A non-disparagement clause
• "Mutual separation," and "no rehire" language
• COBRA provisions
• Often paired with an internal investigation "conclusion" letter that downplays findings.

Employees may feel as though the offer is a "take it or leave it," and can feel coerced into agreeing. The language is often overbroad, waiving future claims and prohibiting contact with government agencies. References to "performance issues" can potentially rewrite the record, and there may even be a requirement to withdraw a pending EEOC or MCCR complaint.

Contact a Columbia, MD Severance Negotiation Lawyer

A severance package after a complaint is not automatically a "win." It is a legal negotiation with far-reaching consequences. It is beneficial to speak to a Howard County, MD employment law attorney from Freedman Law, LLC before you sign anything. Attorney Freedman is rated as one of the best employment lawyers in Annapolis, MD. He is very hands-on and supportive while defending your case aggressively. Call 410-290-6232 to schedule your initial attorney meeting.