A severance agreement is a contract that an employer may ask an employee to sign when they are terminated from a job. There are many nuances to ERISA laws and regulations, and life, health and disability employee benefits.Lane Powell has you covered. This alert discusses whether you should pay terminated employees severance benefits, and how you should structure such payments. ERISA claims are often very complex and difficult. ERISA restrictions and limitations in Washington DC often surprise people, so it is important to understand what the legislation can and cannot do. ERISA governs only a severance plan that requires an "ongoing administrative program," requiring "complex administrative activities." The employer identifies this payment as "severance pay. Meal periods must be taken after the second hour of work but before completing the fifth hour of work. Employers in Washington state are not required to offer severance pay as it is considered a voluntary benefit.