Wrongful Termination in California: What It Takes to Prove
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.
By Ingrid Rainey · January 14, 2026 · 8 min read

A severance agreement is a contract: the employer pays money, and in exchange you give up the right to sue. Because it is a contract, almost every term in it is negotiable — and because California law restricts several common provisions, some of what appears in a standard template may not be enforceable against you at all. The time to work through that is during the review window, not after you sign.
Severance is not owed by default in California. Unless a written policy, employment agreement, or company practice promises it, an employer offers severance because it wants something: a general release of all claims, including claims you may not have thought about yet.
That means the value of the offer should be measured against the value of the claims you are releasing. An employee with a clean, uneventful separation and an employee who was terminated two weeks after reporting unpaid overtime are being asked to sign the same paperwork — but they are not giving up the same thing.
A severance agreement cannot stop you from filing a charge with the EEOC, the California Civil Rights Department, the NLRB, or the Labor Commissioner, and it cannot prevent you from cooperating with a government investigation. It cannot waive unpaid wages already earned, workers' compensation rights, or unemployment insurance eligibility. It also cannot require you to lie.
When a draft appears to waive those things, that is usually a sign the template is old — and an old template is often a sign that the rest of the numbers have not been thought about carefully either.
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Request a consultationIf the separation followed a complaint, a leave, a disability accommodation request, a whistleblower report, or a protected characteristic issue, the release is worth more than the offer typically reflects. The same is true where equity, commissions, or a bonus are in play, or where the agreement contains restrictive covenants.
A review is usually a fixed, short engagement: read the document, identify the leverage, and either advise you to sign or send a counter. Rainey Law P.C. handles severance reviews for employees across California from its San Diego office.
Whatever the agreement states, with a floor set by federal law for older workers: if you are 40 or over, you must get at least 21 days to consider an individual agreement (45 days in a group layoff) and 7 days to revoke after signing. Under 40, the deadline is whatever the employer sets — but deadlines are themselves negotiable.
Yes. At-will status governs whether the employer could end the relationship; it does not govern what the employer will pay for a release of claims. Employers pay severance to buy certainty, and that motive exists regardless of at-will status.
Severance generally does not disqualify you from California unemployment insurance, though lump-sum versus continued-salary payments can affect timing. Never sign a document stating you resigned voluntarily without understanding the effect on a claim.
In California, no. Non-competes are void with narrow exceptions tied to the sale of a business, and California law now makes it unlawful for an employer to include or attempt to enforce one against a California employee.
This article is general information, not legal advice, and does not create an attorney-client relationship. Outcomes depend on the facts of each matter.
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