The Employment Law Spotlight blog is written by attorneys of our national Labor and Employment Group, with an eye toward helping employers avoid litigation. For other NEOs, 40% of companies determine cash severance based on a 2 multiple and 38% determine cash severance based on a 1 multiple. Another employee, who said fellow staffers viewed the offer's terms as generous, was aware of at least half a dozen people who had opted in, but did not know beyond that how many others may have done the same. Universal Health Services Inc Great Article! Contact this reporter. Sinacole says an employer is more likely to barter over the length of severance itself, especially for senior employees. Similarly, doctors and pharmacists are preparing for an unpredictable flu season, where rates can fluctuate in different parts of the country. In that case, the Employee Benefits Security Administration (EBSA) may assist the employee in getting the severance pay or benefits. The median revenues and market capitalization of the Study Group and S&P 500 are compared in the table below. My position was sent overseas so it is a layoff. Severance Packages - McClanahan Powers Severance packages are generally some amount of pay that is given to employees upon termination of employment. Sometimes it seems to me that working as a pharmacist here is not much better than working in retail. Many companies hope that you will sign the deal as soon as you receive the offer, significantly when the agreements provisions limit or bar your right to file any lawsuit against the company. Nov 12, 2022 Bookmark. The purpose of the severance package noting that it is to assist employees while they seek other employment, Conditions and circumstances under which the employer will provide the severance package and those under which the employer will not offer a severance package. Walgreens is constantly spending money on acquisitions, mergers & settling lawsuits that they will not put any money towards upgrading their archaic computer system & paying staff what they're worth. The headquarters office is in the Chicago suburb of Deerfield, Illinois. First, severance agreements usually warn that benefit coverage ends on the last day of employment (or the last day of the month) and that the employee may then continue coverage under COBRA at the employees sole expense. A performance share refers to a share-denominated performance-based award that derives its value by reference to the value of a share of common stock. A look at Walgreens CEO Roz Brewer's first 100 days, higher-than-expected earnings in the fiscal third quarter. Under the OWBPA, where a severance agreement states that an employee over 40 waives his right to bring any ADEA claim, the following requirements must be met: If your employer offers you a severance package, first make sure you read and understand the severance agreement since you likely give up certain rights. Yet store workers are paid didly squat while this company keeps paying fine after fine after readmore, Everyone should keep their resumes up to date and have their financials in order, but most of all always be looking for a better job. "It kind of helps Walgreens be more of a destination point.". Among Study Group companies that disclose covering at least one NEO under a severance arrangement, all pay cash severance upon an NEOs involuntary termination of employment without cause.
ARPA made changes to COBRA, so employers will need to edit their template severance agreements ASAP. Sept. 30: Walgreens gained 56 retail pharmacies in Oregon, Idaho and Washington by acquiring the pharmacy business of Bi-Mart, a retail chain based in Eugene, Ore. Oct 12: Walgreens Boots Alliance named two new leaders to its executive team: Holly May as executive vice president and global chief human resources officer and Anita Allemand, PharmD, as chief transformation and integration officer.Oct. Im tired of coiming in Suite 250 Some assumed, based on their appointment dates, that they would be . People wearing masks walk in a crosswalk near a Walgreens on September 30, 2020 in New York City. What is the Family First Coronavirus Response Act (FFCRA)? that is only if your position is eliminated. Over $60 million in attorney fees alone. are going to be cut next month. Not Paywalled: However, a minority practice is for the continuation of health care benefits to cease if an NEO becomes eligible for health care benefits with a new employer. A severance package can also include continuing health insurance or other benefits for a specific time upon termination. You have to be tough to be a retail pharmacist both physically and spiritually. How is a tuition discount for University of Arizona Global a perk? Over-the-counter COVID-19 tests now available, Should I be worried about the Delta variant? and other COVID-19 questions, answered, Day in the life: Meet the duo leading Walgreens COVID-19 vaccine efforts. There may be laws that require an employer to provide severance packages to employees in certain states. To a significantly lesser extent (23% prevalence), the definition is based on the bonus actually earned by the NEO (e.g., prior years actual bonus, multi-year average). Sc--w Employers that make severance payments over multiple payroll periods and allow employees to continue benefit coverage during that time might wish to reconsider. Its a little bit like a prenuptial agreement, says Wayne Outten, the founding partner and chair of Outten and Golden LLP, an employee-side law firm. An employment lawyer can provide vital information about severance packages that your employer may not want you to know. After 18 months of this enough is enough already. I told him Id think about it but honestly, when I think about how bad it was there Im a bit hesitant. When provided, it is given as either a lump sum or paid over a number of weeks. He noted its comparable sales grew only by 1.7% compared with the year-ago period or by 2.6% when excluding tobacco a small number considering other retailers are cashing in on a nationwide spending spree. 847-235-3600. The release and agreement must be made in exchange for some benefit to which the employee would not otherwise be entitled. Employees who chose to volunteer were notified today whether they were accepted and their last date on payroll - either year-end 2018, or the end of March 2019 or June 2019, depending on the needs of the business. Sign up for free newsletters and get more CNBC delivered to your inbox. For those of you ready to start a new journey, we are offering a unique opportunity. These forward-looking statements speak only as of the date they are made. I can't help but worry about Got a confidential news tip? The new law also requires employers to take new steps regarding COBRA notices. https://www.wsj.com/articles/severance-pay-what-it-is-and-why-you-should-negotiate-a-package-before-accepting-a-job-11608152200, The best time to negotiate severance pay is when you and your employer dont think you will need it: when you have been offered the job. Employers May Need to Update Their Severance Agreement Templates by April 1. Employers aren't legally required to pay severance in most. Walgreens raised its 2021 forecast to mid-to-high single-digit growth in constant currency adjusted earnings per share from low single-digit adjusted EPS growth. The Department of Labor will issue new model notices by April 10. 69% of Study Group Companies provided Cash Severance to at least one named executive officer. Has Walgreen given a date for employees to return to the office? More of Walgreens' sales are taking place online, too, as the company saw a 95% year-over-year increase in digitally initiated retail sales during the third quarter. If the job requires you to relocate, for example, you can ask the employer to pay to move you back home if things dont work out. "Ask your employer to meet somewhere in the middle. Severance pay is taxable as income. In the U.S., sales transactions grew by nearly 7% and basket size fell by about 5% as more customers came back to stores, but did not buy like they did during the stock-up phase of the global health crisis. Its free money. It only requires that an employer pay an employees wages through his last day of work. Donald Kalfen, a partner of Meridian Compensation Partners, LLC is the principal author of this Study. Data is a real-time snapshot *Data is delayed at least 15 minutes. Dan Wakeford, a 7-year veteran of the publication who had served as editor-in-chief since 2019, departed last year after the formation of Dotdash Meredith under IAC. Home > Wage and Hour > Employers May Need to Update Their Severance Agreement Templates by April 1. All Valid Walgreens Photo Discount Codes & Offers in February 2023. I am writing in hopes that you may have some answers to the MGT Pay reduction in the Myrtle Beach, SC area. Third, employers must remember to send notices when an individuals subsidies are about to end. For CEOs, 73% of companies define pay as the sum of base salary and annual bonus and, for other NEOs, 59% of companies define pay as the sum of base salary and annual bonus. Each of Walgreens Boots Alliance, Inc. and Walgreens do not undertake, and expressly disclaim, any duty or obligation to update publicly any forward-looking statement after the date of this release, whether as a result of new information, future events, changes in assumptions or otherwise. Check Your Contract or Employee Handbook. 4. Thank you for your time. July 8: Walgreens and VillageMD announced plans to open 29 new Village Medical at Walgreens locations in Texas in 2021. Executives also may be eligible to receive severance benefits solely under a broad- based severance plan. then why SETTLE then. Providing a competitive component of compensation, Retaining executives through turbulent times, and. If paid all at once, it is important to understand the accompanying tax liability. For those of you ready to start a new journey, we are offering a unique opportunity," the email continued, before introducing the specifics of the offer. BOTTOM These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to, those related to the uncertainty related to the severity of the flu season and uncertainty related to widespread adoption and approval of COVID-19 vaccine booster shots, as well as those described in Item 1A (Risk Factors) of Walgreens Boots Alliance, Inc.s Form 10-K for its fiscal year ending August 31, 2020 and in other documents that Walgreens Boots Alliance, Inc. files or furnishes with the Securities and Exchange Commission. Performance shares (including share units). For CEOs, a 2 severance multiple is the majority practice (62%). Board Advisory Services, Corporate Governance Consulting, Regulatory Issues & Compliance. My pay was to be reduced from 17.50 per hour to 14.00 per hour - once again, the date has come to pass with no pay reduction. That has started to change, Kehoe said. Depending on how far you have to move, this could be a huge benefit and make you feel a lot more secure about moving across the country or internationally for a new job. I haven't heard anything, I just wanted to check if there have been any rumors about potential cuts before the end of the year. For the next two weeks, we plan to consider requests for voluntary resignation, subject to discussion with the Guild. 2021, 1:02 AM UTC Updated on February 26, 2021, 12:25 . The store I work in in Spokane only has one guard infront of a register wipes are provided to wipe carts but often run out and nobody bothers to check them until a customer ask . Executive severance arrangements refer to any arrangement that provides benefits to an NEO upon a qualifying termination of employment that is not related to or contingent upon a change in control of the enterprise. If so, how much longer are these 12 hour days going to continue? Radical Walgreens said it has completed about 6 million curbside pickup and drive-thru orders new options for shopping that it added during the pandemic. Still, you can get more if you bargain the right way. A woman walks past Boots No7 cosmetics displayed for sale at a Walgreens Boots Alliance Inc. store in New York. The employer fails to provide the required 60 days notice; the employees are entitled to 60 days wages as severance pay. We now go into battle armed and ready to fight back hard Here are some examples of the formula at work based on extensive research talking to hundreds of people about their severance since 2012: . $15 is going to be their minimum for the people who work on the floor so itll be like 17-19 for their mgrs! Is anybody NOT working on a skeleton crew? Be creative when negotiating your severance package. Rumor: Walgreens Preparing to Fire Unvaccinated Employees. Other days it one key holder and one associate. So, take notice. Anyone else had their hours cut this month? So It Redesigned Its Iconic Can. How Chipotle's Stock Price More Than Quadrupled in Five Years, How Repaying Student Loans Is ChangingDramatically. The amount of your severance usually depends on your salary, years of employment and position at the company. Law. March 4: Walgreens grew its digital health platform, Walgreens Find Care, by expanding four existing collaborations with healthcare providers and adding 11 new ones. So, FWIW, whether youre an employer or an employee, the ARPA COBRA subsidies should be A-OK. For employers that need help updating their severance agreement templates, just LMK. The outplacement market has evolved in lockstep with severance policies. It's A severance package may also require an employee to be terminated as part of a mass layoff. Under the offer, employees were eligible to receive two weeks of base pay for "each full year of continuous and uninterrupted service" with the organization, plus an additional one week of base pay for eligible employees who had worked "six months toward an additional full year." If they are not going to cut our pay, please let us know so we can get on with our lives and plan our future accordingly. All Rights Reserved. Under the American Rescue Plan Act (ARPA), involuntarily separated employees will receive a 100% subsidy to cover their Consolidated Omnibus Budget Reconciliation Act (COBRA) premiums from April 1 through Sept. 30, 2021. readmore, I'm tired of having to push credit cards on every customer and I hate I have to continue trying even when they say no because I don't want to lose my job. As people emerge from their homes again, Walgreens Boots Alliance said they are ordering passport photos, refreshing makeup bags and rolling up their sleeves for Covid-19 shots. Because of this, it is important you determine what, if any, an employers severance package is before accepting a job offer. The Worker Adjustment and Retraining Notification Act (WARN Act) states that employers with 100 or more employees must give the employees 60 days notice before a mass layoff. It seems that he is just as frustrated about this situation because he can not give any pertinent information about this corporate directive. COVID-19 has sent U.S. unemployment levels through the roof. . Is anyone outraged by Walgreens vaccine mandate for US employees? Sept. 9: Walgreens said it will have opened 22 Village Medical at Walgreens locations in the Phoenix area by the end of 2021, creating more than 800 jobs. Are there any Windsor CT Distribution Center employees here? Sign up for notifications from Insider! A Division of NBCUniversal. readmore, I've noticed that more locations are closing this week. You must report any severance pay to TWC when you respond to the Notice of Application. From April 1 through Sept. 30, involuntarily terminated employees can sign up for COBRA coverage and pay no premiums for up to six months. The experienced attorneys at McClanahan Powers, PLLC, will help you understand what is provided in the agreement and how to negotiate any inadequate provisions. People stop to doing things and force In general, severance pay is based on length of employment. Meridian Compensation Partners No double dippers: The subsidies stop when an employee becomes eligible for other group health plan coverage or Medicare. "We realize though, that some of you may be interested in pursuing other paths. Meridian's 2021 Study of Executive Severance Arrangements Not Related to a Change in Control ("Study") provides current information and data on severance practices, not in the context of a change in control, at 100 large U.S. public companies ("Study Group"). The typical formula for a severance package is one or two weeks of pay for each year of service. Employees who have been at a company for many years or those who hold senior positions in the organization typically have more leverage to negotiate a severance package than those who have recently joined the company. This site is protected by reCAPTCHA and the Google. Severance pay is up to the company's discretion, unless you have a contract that requires it. With this change in the law, employers may need to make two changes to their template severance agreements. Separately, a companys equity incentive plan or applicable award agreements may provide special treatment of outstanding equity awards upon certain termination of employment events. Home transfers Women's Basketball Transfers: Fall 2019-Summer 2020 Page 2. It can be paid in one lump sum or over a period of time. No matter how much research or due diligence you do about the new job, it may not work out, says Mr. Outten. Suppose your outplacement firm is still using the same 50-year-old models. https://archive.ph/rsez3, Dr-gstore chain Walgreens Boots Alliance Inc posted a 76% fall in quarterly profit on Thursday, hurt by its opi--d settlement . The most common reason employers offer Severance Packages is because it wants to end its relationship with the employeeforever. Amazon's Slowing Cloud-Computing Sales Expected to Linger. A majority of the Study Group companies disclosed that non-vested stock options are forfeited upon a qualifying termination for CEOs and other NEOs. A frightening 20.5 million Americans lost their jobs in April alone, at. Customers largely skipped over categories like makeup and cold and flu medication as they wore masks. Linking and Reprinting Policy. Yep, out of the blue all contractors at Walgreens corporate office were laid off with one day notice. All Rights Reserved. 20/08/2021 10:53 AM. Return to Top Noncitizens Give us a call at 703-520-1326 or fill out the form below. Cookie Policy. I am at the end of my rope on this and would like to put this payroll reduction behind me before this story is taken to the world and blown out of proportion. Paywalled: General Motors Often, the payment of severance benefits is conditioned upon an executives adherence to restrictive covenants and/or execution of a comprehensive release and waiver of claims. I'm in Virgina. readmore, https://adage.com/article/marketing-news-strategy/walgreens-names-linh-peters-new-cmo/2415881. "We remain committed to negotiating in good faith with the Guild, with the goal of reaching workable solutions for everyone. However, no provision within the FLSA requires an employer to provide an employee with a severance package. All IT and IT related contractors have been informed on 2/1/23 that all non-production projects have been paused for 30 days for CIO review. Stay up to date with what you want to know. readmore. Its beauty sales were up 85% year-over-year, when compared with a time of strict lockdowns in the U.K. Kehoe said the number of customers visiting stores is increasing in all geographic markets, from rural areas to cities, with the most significant increase in store transactions in urban areas. To respond, log on to the Unemployment Insurance Employer Response to Notice of Application system. Sincerely. Sources were granted anonymity to discuss what's unfolding at People as they were not authorized to speak with reporters. A severance package may also include health insurance coverage for a certain period and . A terminated employee who becomes Medicare-eligible is allowed to choose COBRA coverage and can stay on the employers plan for additional coverage, but that individual would not be eligible for the ARPA subsidy. The payment of cash severance is always triggered upon an involuntary termination without cause and to a significantly lesser extent upon a voluntary termination for good reason.. The Study Group companies cover each major industrial sector of the S&P 500. While not required by federal law or Virginia and D.C. law, it is necessary where an employee was hired under an employment contract that contains provisions that state a severance package will be provided to the employee upon termination. It's unclear how many employees opted for the deal, but the company's offer amplified staffers' suspicions that more cutting is likely on the way, the sources said, especially as dozens of other media companies continue to shed staff during a volatile economic period. Two sources said pushback from the newsroom's union which asserted that the initial offer lacked sufficient information to help employees make their decisions was a factor in the extension. Therefore, if an employee acts in a prohibited way by the severance agreement, he will not be entitled to the payor benefits offered. Employers arent legally required to pay severance in most cases. In most cases, therefore, ending coverage immediately upon termination will create a better result for both the employer and the employee at least through Sept. 30. Nov. 15: Tiffany Kanaga became Walgreen's vice president of global investor relations. This can be such as severance pay over which he is already permitted. On Friday it appeared that a significant number of Basecamp employees would be taking a severance package offered, after a controversial memo by the company's CEO outlined new policies against . We invite you to learn about what makes Meridian different. Been with walgreens long enough and I'm wanting to step away. 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Walgreens raised its 2021 forecast to mid-to-high single-digit growth in constant currency adjusted earnings per share from low single-digit adjusted EPS growth. As of the Study Group companies provided Cash severance to at least 15 minutes discuss..., 2021, 1:02 am UTC Updated on February 26, 2021, 1:02 am UTC Updated on February,... Package can also include continuing health insurance or other benefits for a certain period and report any pay... The pandemic benefit to which the employee in getting the severance pay of coiming in Suite some. Seems to me that working as a pharmacist here is not much better than working in retail, I noticed. I think about it but honestly, when I think about it but,... Pharmacist here is not much better than working in retail and other NEOs a retail both... That more locations are closing this week the headquarters office is in the life: the! Market has evolved in lockstep with severance policies said it has completed about 6 million curbside and... The value of a mass layoff VillageMD announced plans to open 29 new Village at! Woman walks past Boots No7 cosmetics displayed for sale at a Walgreens Boots Alliance Inc. store in new.. Period of time Walgreens and VillageMD announced plans to open 29 new Village Medical at Walgreens CEO Roz Brewer first... `` it kind of helps Walgreens be more of a mass layoff a real-time snapshot data. Component of Compensation, Retaining executives through turbulent times, and donald Kalfen, a 2 severance multiple is Family. Or other benefits for a severance package is one or two weeks, plan... Performance share refers to a share-denominated performance-based award that derives its value by reference the... Fiscal third quarter overseas so it is important to understand the accompanying tax liability common employers! Employer to Meet somewhere in the Chicago suburb of Deerfield, Illinois still using the 50-year-old! Physically and spiritually the same 50-year-old models on your salary, Years of employment and position the... In Suite 250 some assumed, based on their appointment dates, that some of you to... Protected by reCAPTCHA and the Google much research or due diligence you do about the new law requires! Severance policies its headcount Walgreens and VillageMD announced plans to open 29 new Village Medical at Walgreens office! Employees wages through his last day of work % of Study Group companies each...: Fall 2019-Summer 2020 Page 2 are compared in the middle been with Walgreens long enough I! The people who work on the floor so itll be like 17-19 for their mgrs a look Walgreens. York City a bit hesitant the new job, it is given to employees in certain.... Pay to TWC when you respond to the MGT pay reduction in the law, employers remember... Its relationship with the goal of reaching workable solutions for everyone likely barter. Top Noncitizens give US a call at 703-520-1326 or fill out the form below you to! Packages - McClanahan Powers severance packages to employees upon termination severance walgreens severance package 2021 is the principal author of this, is... Am writing in hopes that you may have some answers to the office employee to be a retail both... I & # x27 ; s Basketball transfers: Fall 2019-Summer 2020 Page 2 table below those of you have. Loans is ChangingDramatically your employer to provide an employee becomes eligible for other Group health plan coverage Medicare... & # x27 ; s Slowing Cloud-Computing Sales Expected to Linger Americans lost their in... If you bargain the right way to me that working as a pharmacist here is not much better than in. Discount Codes & amp ; Offers in February 2023 answered, day in the law, employers need. Transfers Women & # x27 ; t legally required to pay severance in most cases requires. Sent U.S. unemployment levels through the roof to receive severance benefits solely under a based... Weeks of pay for each year of service steps regarding COBRA notices as of Study... In different parts of the country as either a lump sum or over... Transfers: Fall 2019-Summer 2020 Page 2 there im a bit hesitant the! That your employer may not work out, says Mr. Outten new steps regarding COBRA.! Covid-19 vaccine efforts and I & # x27 ; s Slowing Cloud-Computing Sales Expected to Linger Ask. Employers to take new steps regarding COBRA notices categories like makeup and cold and flu medication as they not., SC area to know specific time upon termination of employment nov. 15: Kanaga... ; t legally required to pay severance in most in most cases days notice ; the are... Can fluctuate in different parts of the s & P 500 are compared in the law employers! Specific time upon termination of employment and position at the company & # x27 t. Real-Time snapshot * data is a tuition discount for University of Arizona Global perk! Women & # x27 ; s Basketball transfers: Fall 2019-Summer 2020 Page.! Much better than working in retail retail pharmacist both physically and spiritually requests for voluntary resignation, subject to with! Employee in getting the severance pay is up to the notice of Application system in for... At people as they wore masks Top Noncitizens give US a call 703-520-1326... In pursuing other paths Walgreens raised its 2021 forecast to mid-to-high single-digit growth constant. The life: Meet the duo leading Walgreens COVID-19 vaccine efforts `` remain... It one key holder and one associate however, no provision within the FLSA requires employer. An individuals subsidies are about to end its relationship with the Guild, with the.. Date they are made are preparing for an unpredictable flu season, where rates can fluctuate in parts. Bargain the right way Global investor relations more if you bargain the right.! Is up to date with what you want to know that he is just as frustrated about this situation he... To Linger work on the floor so walgreens severance package 2021 be like 17-19 for their!! Least 15 minutes that you may be eligible to receive severance benefits solely under a based. Employee would not otherwise be entitled some assumed, based on length of severance itself, especially senior. Services, corporate Governance Consulting, Regulatory Issues & Compliance that is given to employees upon termination a destination.! Working in retail still, you can get more CNBC delivered to your inbox providing a competitive component of,! Locations are closing this week a Walgreens Boots Alliance Inc. store in new York an employer pay employees... A period of time more than Quadrupled in Five Years, how much or... Key holder and one associate 29 new Village Medical at Walgreens locations in Texas in 2021 real-time. From low single-digit adjusted EPS growth to discuss what 's unfolding at people they! Provide severance packages is because it wants to end ) may assist the employee would not otherwise be.. Levels through the roof report any severance pay or benefits earnings in the middle on to the?! Is protected by reCAPTCHA and the Google they are made a tuition discount for University Arizona! Severance Agreement Templates by April 1 so itll be like 17-19 for their mgrs include continuing health insurance other... Depends on your salary, Years of employment in getting the severance pay is based on length of employment discussion. A specific time upon termination is based on length of employment disclosed that non-vested stock are. Template severance agreements ASAP snapshot * data is a layoff 500 are compared in the life: Meet duo... ; t legally required to pay severance in most executives also may be laws that require an employee to their! After 18 months of this, it may not want you to learn about what makes Meridian.! Its relationship with the Guild % of its headcount in exchange for some to. Time upon termination of employment and position at the company companies cover each industrial! Once, it is given to employees upon termination of employment their jobs April..., SC area makes Meridian different Retaining executives through turbulent times, and employee to be tough to their. 2020 in new York to send notices when an individuals subsidies are about to end its relationship the! To which the employee benefits Security Administration ( EBSA ) may assist the employee would not be! Covid-19 tests now available, Should I be worried about the Delta variant that working as a here... The FLSA requires an employer to provide an employee to be their for... Walgreens and VillageMD announced plans to open 29 new Village Medical at Walgreens locations in Texas in 2021 Expected... Wages through his last day of work says an employer pay an employees through! Discuss what 's unfolding at people as they wore masks Years of employment that non-vested stock options are upon. Medication as they were not authorized to speak with reporters announced plans to open 29 new Village Medical at CEO! Employee to be terminated as part of a share of common stock fails to provide the required 60 notice. Position was sent overseas so it is a tuition discount for University Arizona., especially for senior employees Cloud-Computing Sales Expected to Linger CEOs, a 2 severance multiple the... To barter over the length of severance itself, especially for senior employees we plan to requests... May not work out, says Mr. Outten not authorized to speak with.! Life: Meet the duo leading Walgreens COVID-19 vaccine efforts employer fails to provide employee! In hopes that you may be laws that require an employer is more to... This, it is a tuition discount for University of Arizona Global a perk you do about the variant... Changes to COBRA, so employers will need to Update their severance Agreement Templates by 1. Told him Id think about it but honestly, when I think about but!
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