Employee Representation

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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Recognized year after year for excellence in employment and business law

Rated by Super Lawyers 5 Years - Ingrid Rainey
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  • Best of San Diego 2026 winner — Best Lawyers, Rainey Law P.C.
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