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 25, 2026 · 8 min read

Almost every California employee is at-will, and employers say so early and often. It is true, and it is also narrower than it sounds. An at-will employer still cannot terminate someone because of a protected characteristic, because they exercised a legal right, or because they reported something the law protects. The question in nearly every wrongful termination case is causation.
Direct evidence — someone saying the quiet part in writing — is rare. Most cases are built on circumstantial proof, and the strongest single factor is usually timing. A termination that arrives shortly after a complaint, an accommodation request, or a return from leave puts real weight on the employer's explanation.
The second factor is inconsistency. A performance narrative that appears only after the protected activity, shifting explanations across the termination meeting and the unemployment filing, deviation from the company's own progressive discipline policy, and comparators who did the same thing and kept their jobs all undercut the stated reason.
FEHA claims generally require a charge with the California Civil Rights Department, with three years from the unlawful act to file, followed by one year from a right-to-sue notice to file suit. Federal EEOC deadlines are much shorter — typically 300 days in California.
Labor Code retaliation claims, wage claims, and public policy tort claims each carry their own limitations periods. Because the shortest applicable deadline governs the strategy, an early consultation matters even if you are undecided about suing.
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Rainey Law P.C. advises San Diego businesses and employees on matters like this one.
Request a consultationIf a severance agreement is on the table, it is a release of exactly these claims. Have it reviewed before signing — the value of the release depends on the strength of the case, and that is not something the offer letter will tell you.
Rainey Law P.C. represents employees in wrongful termination, retaliation, and discrimination matters in San Diego and across California.
Yes, if the real reason is not an unlawful one. At-will employment allows termination without cause, but not for a discriminatory, retaliatory, or public-policy-violating reason.
It depends on the claim. FEHA claims generally require an administrative charge within three years and suit within one year of the right-to-sue notice; federal EEOC deadlines are typically 300 days. Other claims have shorter periods, so act early.
For FEHA and Title VII claims, yes — you must exhaust administrative remedies with the California Civil Rights Department or the EEOC first. Some claims, such as certain Labor Code and public policy claims, can proceed without one.
A constructive discharge claim is available where working conditions were so intolerable that a reasonable person would have felt compelled to resign. The bar is high, so documenting conditions and complaints before resigning matters a great deal.
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.
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