Before you sign anything, make sure you understand what you're giving up.
California Severance Pay Lawyer
You’ve just been handed a severance agreement. It’s a lot of legal language, and you’re being asked to make a decision quickly. This is exactly the moment to pause and get advice.
A severance agreement can feel like a lifeline in a difficult moment. Your job is gone, you’re worried about money, and someone is offering you something. But what most employees don’t realize until it’s too late is that signing a severance agreement means giving something up too.
When you sign a severance agreement, you’re releasing your right to pursue legal action against your employer. That includes claims you know about and claims you don’t know about yet. Discrimination. Harassment. Retaliation. Wage and hour violations. Potential class action claims. All of it. Once you sign, those rights are gone.
California law gives employees time to consider a severance agreement before signing. Typically, 21 days to review it and seven days to revoke after signing. That window exists for a reason. Use it. Because the decision you make in that moment may have consequences that follow you long after the check clears.
What You're Actually Agreeing To
Severance agreements are written by the employer’s attorney. That means every term in that document was drafted with the employer’s interests in mind, not yours. Understanding what you’re agreeing to before you sign is the only way to make sure the terms are fair and that the amount being offered actually justifies what you’re giving up.
When you sign a severance agreement, you’re typically releasing your right to pursue any claim against your employer, whether you’re aware of it or not. That’s a significant thing to agree to, especially if something unlawful happened in the lead up to your termination. An employee who signs away their rights before consulting an attorney may be walking away from a claim worth far more than the severance being offered.
The terms of a severance agreement can also vary significantly from one employer to the next. Some agreements are straightforward. Others contain language around non-disparagement, confidentiality, and other provisions that can affect what you’re able to say and do after you leave. Knowing what you’re agreeing to on all of those fronts matters.
Severance agreements may also be negotiable. If you have potential claims against your employer, that gives you leverage. And an employment attorney is in the best position to assess what that leverage looks like and whether the amount being offered is reasonable in exchange for what you’re releasing.
When a Severance Agreement Is Negotiable
Not every severance agreement is a take it or leave it offer, and many employees don’t realize they have the ability to push back on the terms or the amount being offered.
Whether a severance agreement is negotiable depends on the employer and the circumstances surrounding the separation. But if you have potential claims against your employer, that changes the dynamic significantly. An employee who was terminated under circumstances that raise questions about discrimination, retaliation, harassment, or wage and hour violations has something the employer wants: a release of those claims. And that’s leverage.
The amount being offered in a severance agreement should be weighed against the value of what you’re giving up. An employer who knows an employee has viable claims against them has more reason to negotiate than one who doesn’t. An employment attorney can assess the circumstances of your termination, identify whether potential claims exist, and give you an honest picture of whether the amount on the table is reasonable in exchange for releasing those rights.
The biggest mistake employees make is signing the agreement the same day they receive it, without reading it fully, without understanding what they’re waiving, and without consulting an attorney. California law gives you time to consider. Taking that time isn’t a sign of bad faith. It’s exactly what that window is there for.
What to Look for in a Severance Agreement
The Release of Claims
A severance agreement will ask you to release your right to pursue any legal action against your employer, including claims you may not yet be aware of. Understanding the full scope of what you're releasing is critical before signing.
The Amount Being Offered
The severance amount should be reasonable in exchange for the rights you're giving up. An employment attorney can help you assess whether what's being offered is fair given your specific situation and any potential claims you may have.
Non-Disparagement Clauses
Many severance agreements include language restricting what you can say about your employer after you leave. Understanding exactly what that language covers is important before you agree to it.
Confidentiality Provisions
Some agreements require you to keep the terms of the severance confidential. Knowing what you can and can't disclose after signing protects you from unintentionally violating the agreement.
The Consideration Period
California law typically gives employees 21 days to consider a severance agreement and seven days to revoke after signing. Make sure the agreement you're reviewing provides that window.
Compliance with California Law
A severance agreement has to meet certain legal requirements to be enforceable. An employment attorney can review the agreement to make sure it's compliant and that your rights are protected throughout the process.
What Happens if You Sign Without Consulting an Attorney
Signing a severance agreement without consulting an attorney is one of the most common and costly mistakes employees make. And it happens more often than most people realize, because the pressure to sign quickly can feel overwhelming in an already difficult moment.
Once you sign, the rights you released are gone. There’s no going back to pursue a discrimination claim you didn’t know you had. No ability to join a class action that surfaces six months later. No recourse if you discover after the fact that something unlawful drove your termination. The agreement closes that door, and it closes it permanently.
Most employees who sign without consulting an attorney do so because they don’t fully understand what they’re agreeing to. The language in a severance agreement is legal language, written by the employer’s attorney, designed to be comprehensive in what it covers. An employee reading it without legal training may not recognize the full scope of what’s being released, or whether the amount being offered is reasonable in exchange for releasing it.
California law gives you time to make this decision carefully. An employer who makes you feel like that time doesn’t exist is not acting in your interest. Taking the time to consult with an attorney before signing costs you nothing and could change everything about the decision you make.
“The biggest mistake I see employees make is that they don’t consult with an attorney upon receiving a severance agreement. They just sign it right away.”
-Nancyrose Hernandez
Your Rights Under California Law
California law provides specific protections for employees who are presented with a severance agreement, and understanding those protections before you sign is the most important thing you can do.
You have the right to take time to consider a severance agreement before signing. California law typically provides 21 days to review the agreement and seven days to revoke after signing. An employer who pressures you to sign immediately or suggests the offer will expire if you don’t sign right away is not giving you the process the law intends.
You also have the right to consult with an attorney before signing anything. The employer’s attorney drafted that agreement. Having your own attorney review it before you agree to its terms is not an unreasonable ask. It’s the only way to make sure you fully understand what you’re signing and what you’re giving up in exchange for it.
And if something unlawful happened in the lead up to your termination, you have the right to know that before you release your claims. An employment attorney can assess the circumstances of your separation, identify whether potential claims exist, and give you an honest picture of whether walking away makes sense or whether there’s something worth pursuing first.
How We Can Help You Move Forward
When someone comes into our office with a severance agreement, we start by reviewing the document and listening to the full story of what happened. Not just what the agreement says, but what led up to it. How the separation happened. What the circumstances were. And whether anything about the way it unfolded raises questions worth examining before a signature goes on that page.
A severance agreement review isn’t just about the language in the document. It’s about understanding what you’re giving up and whether what’s being offered is reasonable in exchange for it. We look at the terms, the amount, the release of claims, and the circumstances of the termination to give you an honest assessment of where you stand.
Many clients come to us having already been pressured to sign quickly. Some have already signed without fully understanding what they agreed to. Whatever stage you’re at, the sooner you reach out the more options you have available to you.
Nancyrose Hernandez concentrates her practice in employment law because she believes employees deserve to make informed decisions, especially in the moments when the stakes are highest. A severance agreement is one of those moments.
Attorney client communications are confidential from the moment you reach out, even at the consultation stage. What you share with us stays with us.
Frequently Asked Questions
No. A severance agreement is a negotiated exchange, and signing is a choice. You’re being offered something in exchange for releasing your legal rights against your employer. Whether that exchange makes sense for your situation is exactly what a consultation with an employment attorney can help you determine.
California law typically gives employees 21 days to review a severance agreement and seven days to revoke after signing. An employer who pressures you to sign immediately is not giving you the process the law intends.
It depends on the employer and the circumstances of your separation. If you have potential claims against your employer, that gives you leverage to negotiate both the terms and the amount being offered. An employment attorney can assess your situation and give you an honest picture of what that leverage looks like.
When you sign a severance agreement you’re typically releasing your right to pursue any legal action against your employer, including claims you may not yet be aware of. That includes potential claims for discrimination, harassment, retaliation, and wage and hour violations.
It starts with a conversation. We listen to the full story of what happened, review the agreement, and give you an honest assessment of whether the terms are fair and whether the amount being offered is reasonable given what you’re releasing. Most consultations are free.
What Happened to You Deserves a Closer Look.
Before you sign anything, make sure you understand what you’re agreeing to. A severance agreement is a significant legal decision, and you deserve to make it with full information and someone in your corner.
You have rights under California law. You have someone who will listen. And you have more options than you might realize right now.
Reach out today. We’re here to help.