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 24, 2026 · 7 min read
Updated July 8, 2026

California law prohibits most employers from discriminating against applicants or employees based on off-duty cannabis use away from the workplace, and from relying on tests that detect non-psychoactive cannabis metabolites. Metabolites can remain detectable for weeks and say nothing about current impairment, which is the policy rationale. Employers retain the right to a drug-free workplace — but the testing method and the documentation behind an adverse decision now matter a great deal.
The restriction is on the basis of the decision, not on testing generally. An employer may not refuse to hire, terminate, or otherwise penalize a person because of cannabis use off the job and away from the workplace, or because of a test result showing non-psychoactive metabolites.
Separately, employers generally may not ask applicants about prior cannabis use, and criminal history inquiries about certain cannabis convictions are limited.
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Rainey Law P.C. advises San Diego businesses and employees on matters like this one.
Request a consultationThe building and construction trades are excluded, as are positions requiring a federal government background investigation or security clearance. Employers subject to federal testing regulations — DOT-covered drivers, for instance — continue to follow those rules.
Exemptions are read narrowly. A company that does some construction work does not exempt its office staff.
Yes, provided the test does not screen for non-psychoactive cannabis metabolites as a basis for the hiring decision. Other substances may still be screened normally.
You may act. Document specific observations, follow a reasonable-suspicion protocol with a second observer where possible, and apply the policy consistently.
No. On-the-job possession, use, and impairment can be prohibited and disciplined.
Only if they fall within the statutory exceptions or a federal testing regime. Safety-sensitive as an internal label is not itself an exemption.
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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