Short answer: Yes. A severance agreement isn’t automatically the final offer. Employers often present it as a take it or leave it number, and many employees sign without realizing they have room to ask for more. You can negotiate the total amount, the length of health insurance coverage, and other terms, especially if your years of service or the circumstances of your separation give you leverage. Talking to an employment attorney before you sign gives you the clearest picture of what you’re giving up and what you might be able to get instead.
Why Employees Assume There’s No Room to Negotiate
When a severance agreement lands on your desk, it can feel final. Employers often rush the process along, and that pressure leads a lot of employees to believe the number in front of them is the only number available. In many cases, the employer is also pushing the employee to sign quickly, before they’ve had a chance to talk to an attorney or think through what they’re actually agreeing to.
That pressure is exactly why we tell clients the same thing every time. “The first thing I tell a client, when they feel like they don’t have any room for negotiation in regard to a severance agreement, is that they always have a right to negotiate,” says attorney Nancyrose Hernandez. “The worst that will happen is that the employer will say no. So I think it’s really important to at least try to negotiate.”
What Gives You Leverage
Not every negotiation looks the same, and the right approach depends on your situation. Your years of employment matter, along with what actually happened while you were there. If something occurred during your employment that could support a legal claim, that history becomes part of your leverage. This is especially true if your separation followed a complaint you made, connects to your age, or ties to a reason that could be considered unlawful. In those situations, you may have a right to negotiate for more money, or you may have a claim against your employer worth more than the severance being offered.
Before starting a negotiation, we recommend gathering performance reviews, emails, and text messages that document your time at the company. This record helps you and your attorney understand whether you have any claims worth raising, and that understanding becomes the foundation for negotiating a higher amount. Employees who skip this step and negotiate without looking at the full picture often don’t have the leverage they need to get a better outcome.
Severance Isn’t Just About the Dollar Amount
Money isn’t the only thing on the table. Employees are entitled to COBRA notice, and the length of that coverage can be negotiated too. We’ve worked with employees who started with one month of health insurance coverage and negotiated their way to three. That extra coverage gives you breathing room while you search for a new job, without worrying about a gap in your health insurance.
It’s also worth knowing that severance pay counts as taxable income. It comes through as wages with the normal deductions taken out, not as a lump sum you receive in full. Understanding that up front helps you set realistic expectations about what you’ll actually walk away with.
A Client Story: Negotiating From a Position of Knowledge
We once worked with a male executive in his forties who came to us for a severance agreement review. He held a high level VP position and earned a strong salary, and his employer wanted him out. The original offer was in the six figures, but measured against his salary and what he was being asked to release, it fell short.
He came to our office after the severance agreement was already in his hands, but before he signed it. We talked through what he experienced while working there, what rights he’d be releasing by signing, and what potential claims he had. Once he understood those claims, he had the information he needed to negotiate.
The back and forth that followed was quick and direct. The employer was initially resistant, but came to understand that getting this employee to sign and release them of liability meant bringing more money to the table. No other terms in the agreement changed. The only thing that moved was the severance amount, and it moved because he pushed back.
By the end of the process, he felt empowered by the outcome and grateful he hadn’t accepted the first offer. He had the knowledge and the confidence to go back to the table, and the result gave him the resources to support his family while he looked for new work. As Attorney Hernandez puts it, cases like this come down to one thing: knowing that asking is always an option, and knowing how to ask.
If You’ve Already Signed
If you sign a severance agreement and later feel like you made a mistake or don’t want to move forward with it, you typically have seven days to revoke your signature. If that’s your situation, act quickly and reach out to an employment attorney as soon as possible so you understand your options and what you’d be releasing if the agreement stands.
Severance agreements aren’t always the final word. If you have the ability and the standing to negotiate, whether that means a higher amount, longer health coverage, or both, it’s worth trying. That negotiation starts with understanding your rights, and that’s something we help employees do every day.
Disclaimer
This content is for informational purposes only and does not constitute legal advice. Every situation is different. Consult with a qualified employment law attorney to discuss the details of your case.
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