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 · August 19, 2026 · 5 min read

SB 294 added Labor Code sections 1550 through 1559, known as the Workplace Know Your Rights Act. It requires California employers to give every employee an annual notice of specified workplace rights and to honor an employee's designation of an emergency contact who is notified if the employee is arrested or detained at work. The first notice deadline was February 1, 2026, and the obligation recurs annually.
Employees may designate an emergency contact to be notified if the employee is arrested or detained at work. Employers need a process for collecting that designation, storing it confidentially, keeping it current, and actually using it — which means someone must own the task before the situation arises, not during it.
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Rainey Law P.C. advises San Diego businesses and employees on matters like this one.
Request a consultationThe failures we see are administrative, not philosophical: notices sent to corporate email addresses that field employees never check, Spanish-speaking crews handed English-only versions, and no record proving distribution happened. Each is easy to fix in advance and expensive to explain afterward.
All California employers, regardless of size, must provide the annual notice to employees.
No. The Labor Commissioner publishes a compliant template in multiple languages and updates it each year.
Annually, with the initial deadline of February 1, 2026, and each year thereafter.
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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