Severance guide
Should I sign my severance agreement?
Usually some version of it, yes — but rarely the first version, and almost never on the day you receive it. Signing is what ends the conversation, so read these five things first, then put it to an employment attorney on a free call before your deadline.
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1. What exactly you're releasing
Most agreements contain a general release of all claims arising up to the signing date: discrimination, retaliation, wage claims, wrongful termination. That's normal. Two things are not normal and deserve a closer look: language that releases future claims, and language purporting to waive rights that can't legally be waived — filing a charge with the EEOC, cooperating with a government investigation, or claiming unemployment benefits or workers' compensation in many states.
2. What you're agreeing to stop doing
Non-compete, non-solicit, non-disparagement, confidentiality, no-rehire, mandatory arbitration, and post-employment cooperation clauses all outlive your employment. Ask whether each is necessary, how long it lasts, and how wide it reaches geographically. A non-disparagement clause that binds only you — while the company stays free to characterize your departure to reference-checkers — is one of the most commonly granted edits when someone asks for it to be mutual.
3. Whether the money and benefits are actually complete
Confirm the amount, whether it's a lump sum or salary continuation, when it's paid, and how it's taxed. Then check for the things routinely left out: accrued PTO, an earned bonus or commission, COBRA premium coverage, equity vesting and the option exercise window, and a reference commitment.
4. Your real deadline
If the agreement releases age-discrimination claims and you're 40 or older, federal law generally gives you 21 days to consider it — 45 in a group layoff — plus 7 days after signing to revoke. A shorter window in the document, or a verbal deadline shorter than the written one, is worth flagging: it can affect whether the release holds up.
5. Whether there's a claim here
Talk to an employment attorney before signing if any of these are true: you were let go soon after reporting harassment, discrimination or a safety or accounting concern; soon after requesting medical leave or an accommodation; soon after a pregnancy or disability disclosure; if you're over 40 and younger colleagues in the same role stayed; if you're owed unpaid wages, overtime or commissions; or if you have an employment contract with its own severance terms.
What not to do
- Don't sign in the meeting. Nobody expects you to, and it costs you every option.
- Don't negotiate emotionally. Written, specific, unemotional requests get answered.
- Don't assume it's take-it-or-leave-it. Companies expect a small number of people to ask.
- Don't miss the deadline while thinking about it. An expired offer is worse than a signed one.
The fastest way to know where you stand
Get an employment attorney on the phone — most consultations for severance review are free, and these cases are commonly taken on contingency. Prefer to look first? The free review pulls out your deadline, the money and every restriction in about a minute.
This page is general information, not legal advice. Employment law varies by state and the facts of your situation matter. Talk to a licensed employment attorney in your state before signing or declining an agreement.