A severance offer can be intimidating – most are full of legalese and, depending on the circumstances, can feel like a rush job you’re being pushed to sign. Either way, slow down. Signing almost always means giving something up, so it’s worth knowing what.
You’re usually signing away your right to sue. Most severance agreements include a broad “release of claims.” In plain terms, in exchange for the payment, you agree not to bring legal claims against your employer, even ones you may not know you have yet.
Some rights can’t be waived. You can’t sign away wages you’re already owed, workers’ compensation, unemployment benefits, or your right to file a charge with a government agency like the California Civil Rights Department, the EEOC, or the NLRB. Watch for language that tries to overreach.
Check the strings attached. Look closely at non-disparagement and confidentiality clauses. For example, in California, the Silenced No More Act limits agreements that try to stop you from speaking about unlawful sexual harassment or discrimination you experienced or witnessed.
Mind the deadlines and the revocation window. If you’re 40 or older, federal law generally gives you at least 21 days to consider the agreement (45 days in a group layoff) and 7 days to change your mind after signing. Don’t let anyone pressure you to sign on the spot.
It may be negotiable. The first offer isn’t always the last word. The amount, timing, a neutral reference, and continued benefits can sometimes be improved, especially if you may have legal claims worth more than what’s on the table.
Because a signature is usually final, it’s worth having an employment lawyer review the agreement first. At Grochow Law, we review severance agreements for California employees and can tell you what you’d be giving up and whether the deal is fair.
This post is general information, not legal advice, and doesn’t create an attorney-client relationship. Every situation is different, so reach out if you’d like us to look at yours.
