Severance Agreement Review & Negotiation
A severance agreement is a contract that trades money for your legal claims. Once signed, most of your leverage is gone. A review before signing tells you what you are actually giving up, whether the number is defensible, and where the terms can move.
- Turnaround
- Fast review before your deadline
- Scope
- Review, redlines, or full negotiation
- Also for
- Executive and equity-heavy packages
What we look for in a severance agreement
- The scope of the release — which claims are waived, and whether any are legally unwaivable
- Whether the payment reflects the real value of the claims you are releasing
- Non-disparagement, confidentiality, and their limits under California law
- Non-compete and non-solicit terms, which California heavily restricts
- Treatment of vested and unvested equity, bonuses, and commissions
- Health coverage, COBRA contributions, and the timing of payments
- Neutral reference and rehire-eligibility language
- Cooperation clauses that obligate your time long after you leave
- ADEA/OWBPA compliance if you are 40 or older, including the review and revocation periods
Severance is more negotiable than most people assume
Employers present severance as a standard form because that is cheaper than negotiating. But the employer is buying something — certainty. When there is a live claim behind the separation, or when the agreement asks for terms beyond a simple release, there is usually room on the number, the timing, the reference language, or the restrictive covenants.
Don't sign before you know whether you have a claim
The most costly severance mistakes happen when someone with a strong discrimination, retaliation, or unpaid-wage claim signs a release for a few weeks of pay. Part of the review is a candid assessment of what claims exist and what they are worth — before the release forecloses them.
Executive separations
Executive packages add layers: change-of-control provisions, accelerated vesting, clawbacks, deferred compensation, 280G considerations, and post-employment board or advisory roles. We handle those negotiations alongside the underlying employment claims.
Frequently asked questions
Should I have a lawyer review my severance agreement?
If the agreement releases legal claims — and nearly all do — a review is worth it. The cost of a review is small next to the value of claims that a release permanently waives.
How long do I have to sign a severance agreement?
Employers usually set a deadline. If you are 40 or older, federal law generally requires at least 21 days to consider a release of age claims (45 days in a group layoff) and a 7-day revocation period afterward. Deadlines outside those rules are often extendable if you ask.
Can severance be negotiated?
Often, yes — on amount, payment timing, benefits continuation, reference language, and restrictive covenants. Leverage is strongest where there is a credible underlying claim or where the employer wants terms beyond a basic release.
Does signing severance mean I can never sue?
It usually waives the claims described in the release, but certain rights cannot be waived — for example, filing a charge with a government agency. What survives depends on the exact language, which is why the review matters.
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