Severance Agreements in California: What to Review Before You Sign
Most severance offers are first offers. Here is how California law limits what an employer can ask you to give up, and where the real negotiating room usually sits.
By Ingrid Rainey · February 17, 2026 · 8 min read

California's Fair Employment and Housing Act imposes two separate obligations on employers: to provide reasonable accommodation for a known disability, and to engage in a timely, good-faith interactive process about it. The second is independently actionable. An employer can win the argument that a requested accommodation was unreasonable and still lose the case because nobody documented the discussion.
There are no magic words. A request for a schedule change because of treatment, a doctor's note with restrictions, or an obvious limitation the employer observes can all put the employer on notice. Once on notice, the clock starts.
California defines disability more broadly than federal law: a condition that limits a major life activity qualifies, without the federal requirement that the limitation be substantial. Temporary conditions and conditions controlled by medication can qualify.
The federal FMLA and the California Family Rights Act both provide up to 12 weeks of job-protected leave, but CFRA applies to employers with five or more employees and defines covered family members more broadly. Pregnancy Disability Leave provides up to four months and runs separately from CFRA baby-bonding leave, so a California employee can be entitled to substantially more combined time than a federal-only analysis suggests.
State Disability Insurance and Paid Family Leave provide wage replacement but do not themselves create job protection. Confusing the two is one of the most common employer errors.
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Rainey Law P.C. advises San Diego businesses and employees on matters like this one.
Request a consultationThese matters are far cheaper to fix during the interactive process than after a termination. Rainey Law P.C. advises San Diego employers on accommodation programs and represents employees whose requests were ignored or punished.
No. The obligation is to provide a reasonable accommodation that is effective, which may be an alternative to the one requested — but the employer must actually engage in the discussion about alternatives.
Generally not. A finite leave with an expected return date is often reasonable; open-ended leave with no prognosis usually is not. The analysis is fact-specific and depends on hardship to the employer.
Employers with five or more employees, which is far broader than the FMLA's 50-employee threshold. Many small San Diego businesses are covered by CFRA and unaware of it.
This article is general information, not legal advice, and does not create an attorney-client relationship. Outcomes depend on the facts of each matter.
Most severance offers are first offers. Here is how California law limits what an employer can ask you to give up, and where the real negotiating room usually sits.
California does not merely refuse to enforce non-competes — it makes including or enforcing one a violation in its own right, with attorney's fees for the employee.
At-will means an employer can fire you for a good reason, a bad reason, or no reason — but not for an unlawful reason. The case turns on which one it was.
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