Severance questions, answered

Yes, and you should at least try. A severance agreement is a trade: the company pays you, and in exchange you give up your right to sue them. How much that promise is worth depends on what you could sue for. If you have potential claims (discrimination, retaliation, unpaid wages, a leave violation), the first offer is often a starting point, not the final number.

Not every offer can be improved, and we'll tell you straight if yours can't.

Usually not. California law doesn't require severance pay in most situations. The exceptions come from what your employer already promised: an employment contract, an offer letter, a written severance policy or plan, or a union contract. Mass layoffs can also trigger WARN Act notice rights and pay in lieu of notice.

But once your employer puts an offer in front of you, it's a deal like any other. Deals can be negotiated.

It depends on your age, how many people were let go, and what your agreement says.

• California: an employer offering a separation agreement must tell you that you have the right to talk to a lawyer and give you at least five business days to do it.
• Age 40 or older: if the agreement waives age discrimination claims, federal law requires at least 21 days to consider it (45 days if you were part of a group layoff) and 7 days to revoke after you sign.

Don't let a short deadline or a pushy HR rep rush you. Reach out early so we have time to work.

Almost always, your right to sue the company for anything that happened during your employment, including claims you don't know about yet. Most California severance agreements include a waiver of Civil Code section 1542, which is the part that reaches unknown claims.

Some rights can't be signed away. You generally can't be required to release wages you're already owed in exchange for getting them, and an agreement can't stop you from filing a charge with a government agency or talking about unlawful conduct at work.

An employer can withdraw an offer, which is exactly why how you negotiate matters. We look at your leverage and talk through that risk with you before we make any counteroffer. You decide whether to go forward, and nothing is sent without your approval.

• Company-paid health coverage (COBRA premiums) for longer
• A neutral reference or an agreed reference letter
• The employer's agreement not to contest your unemployment claim
• Mutual non-disparagement, so it binds them too
• Your bonus, commissions, or equity vesting
• How your exit is described: resignation or termination
• Outplacement services and the timing of your last day

Filling out our intake form is free. A one-hour strategy session with an attorney, where we review your agreement and give you advice tailored to your situation, is $600.

If you hire us to negotiate for you, our fee is a percentage of the new money we recover: the amount above what your employer first offered. That keeps your risk low. We'll explain all fees and costs in a written agreement before any work begins.

Yes. We represent employees who work in California, with offices in San Diego and Orange County.

Severance pay generally doesn't disqualify you from unemployment benefits in California, though some payments, like wages paid in place of notice, can reduce them. The EDD makes the final call. Many agreements include a promise that the employer won't contest your claim, and that's something we ask for.

Maybe not. If you're 40 or older and the agreement waives age claims, you have at least 7 days after signing to revoke. Some agreements also have legal problems that make parts of them unenforceable. Contact us and we'll look.

It can. Group layoffs come with extra rules for workers 40 and older: a 45-day review period, plus written information about who was selected and who wasn't, including their job titles and ages. That information can reveal patterns worth looking at. Larger layoffs can also trigger WARN Act notice requirements.