Practice Area

Severance Agreements & Workplace Contracts

Review and negotiation of severance agreements, releases, non-competes, and other employment contracts.

Overview

Employees are often presented with severance agreements during layoffs, restructurings, workplace disputes, or terminations. In many situations, employers offer severance pay in exchange for employees giving up important legal rights — including the right to pursue claims relating to discrimination, retaliation, harassment, wrongful termination, wage violations, or other unlawful workplace conduct. We assist employees with reviewing, evaluating, and negotiating severance agreements before they sign.

Section 01

What's Actually in a Severance Agreement

A severance agreement is a contract between an employer and employee that typically outlines the terms of separation. In exchange for severance pay or other benefits, employers often require employees to sign broad legal releases waiving potential claims. Agreements may contain provisions involving severance pay, releases of legal claims, confidentiality clauses, non-disparagement provisions, cooperation obligations, non-compete or restrictive covenants, return of company property, continued benefits, or deadlines for accepting the agreement.

Section 02

Important Rights You May Be Waiving

Many employees don't realize that signing a severance agreement may waive substantial legal claims. Employers often present these agreements shortly after termination, when employees are under financial and emotional stress and may feel pressured to sign quickly. Depending on circumstances, you may be waiving claims involving wrongful termination, workplace discrimination, sexual harassment, retaliation, whistleblower claims, disability or medical leave violations, wage and hour claims, or other violations of California employment law.

Section 03

When Severance Follows Discrimination or Retaliation

Severance agreements are frequently presented after workplace disputes involving discrimination, retaliation, harassment, whistleblower activity, medical leave, or accommodation requests. In some cases, employers offer severance specifically to limit legal exposure. Employers may attempt to pressure employees to sign quickly, downplay potential legal claims, offer inadequate compensation, include overly broad confidentiality provisions, or require employees to waive substantial rights without fully understanding the agreement.

Section 04

Negotiating Severance Agreements

Severance agreements are often negotiable. We may be able to negotiate increased severance compensation, additional pay or benefits, extended healthcare coverage, neutral reference provisions, removal or modification of restrictive clauses, extended response deadlines, or clarification of legal obligations. Employers frequently draft severance agreements to protect the company's interests, making legal review particularly important before signing.

Signs you may have a claim

What this looks like in real workplaces.

Recently terminated or laid off and presented with a 'separation agreement'
Asked to sign a non-disparagement, non-compete, or confidentiality clause
Severance offered shortly after you complained about discrimination or retaliation
You suspect the termination itself may have been illegal
Pressure to sign quickly without time to consult an attorney
Terms feel vague or you don't fully understand what you're waiving
You're 40 or older (special ADEA disclosure rules apply)

Applicable Law

The statutes we use to fight back.

Older Workers Benefit Protection Act (OWBPA)

Requires a 21-day consideration period and 7-day revocation period for ADEA waivers by workers 40+.

California Code of Civil Procedure § 1542

Governs the waiver of unknown claims. Severance agreements typically include an explicit § 1542 waiver — which may not always be enforceable.

SB 331 (Silenced No More Act)

Limits non-disclosure provisions related to harassment, discrimination, and retaliation in severance agreements.

What you may recover

Damages we pursue.

Increased severance amount
Modified or removed restrictive covenants
Better tax treatment of severance payments
Preservation of claims you may want to pursue
Extended benefits or COBRA coverage

Frequently Asked

Questions about severance agreements & workplace contracts.

How long do I have to sign?

It depends. Workers 40+ have at least 21 days under OWBPA. Other agreements vary. Don't sign before the deadline — but don't miss it either.

Will the company negotiate?

Often, yes — especially when there are real underlying claims. We've negotiated significant increases in severance amounts and removal of overly broad restrictions.

Free consultation

Talk to us about your situation.

Every case is different. The only way to know what yours is worth is to talk to a lawyer who handles these matters every day.

Free consultation
No-obligation, no pressure conversation
No fee unless we win
Contingency fee — you pay nothing up front
Discreet & private
We treat every consultation with care and discretion