Severance: before you sign
If you were handed a severance agreement, **slow down before you sign**. These papers often include deadlines and legal waivers, so it may help to [get matched for a free consultation](/get-matched/) with an independent employment attorney to understand your options.
What you can do right now
A severance agreement is often optional, but signing it may give up important rights. Before you agree, take a breath, keep a copy, and read every page carefully.
If you feel pressured, you can say you need time to review it. You may also want to write down when you received it, the deadline to sign, what your employer said, and whether anyone asked you not to talk to a lawyer.
A quick attorney review may be worth it because the agreement could affect claims for discrimination, retaliation, unpaid wages, leave violations, or wrongful termination. WorkRightMatch is a free educational and attorney-matching service, not a law firm, and you can get matched to speak with an independent licensed employment attorney about your specific situation.
What a severance agreement usually includes
Severance agreements often offer money or benefits in exchange for promises by the worker. The amount may be a lump sum, salary continuation, payment for a set number of weeks, continued health coverage for a short time, or other benefits.
Many agreements also include legal language such as:
- a release of claims, where you may give up the right to bring certain legal claims
- a confidentiality clause
- a non-disparagement clause
- rules about returning company property
- a statement about references or future employment
- a deadline to sign
Some agreements also include non-compete or non-solicit terms, cooperation clauses, arbitration language, or tax language. Not every term is standard everywhere, and enforceability can vary by state and claim, so it is smart to confirm the details with a licensed attorney.
For more general background, you can read your rights and our guides.
Why signing can be a big decision
The biggest issue is usually the release of claims. In plain English, that can mean you are accepting severance in exchange for giving up the right to sue or file certain claims based on events that already happened.
That matters if you think you were fired for an illegal reason, denied leave, harassed, discriminated against, retaliated against, or not fully paid. At-will employment is the default in most states, but employers still cannot fire people for illegal reasons. Whether a claim exists depends on the facts and the law, and deadlines can be short, sometimes as short as 180 days, depending on the claim and state. Deadlines vary, so confirm them with an attorney.
A severance agreement also may not cover every right. For example, some wage claims, agency rights, or rights under certain laws may be treated differently. That is one reason a personalized legal review can help you understand what you may be giving up and what questions to ask.
What may be negotiable
Some workers assume the first severance offer is final. Sometimes it is not. Depending on the facts, the employer may be willing to change the amount, timing, or wording.
Items that may be negotiable can include:
- the severance amount
- how and when you are paid
- continued health insurance support
- payout of unused PTO if allowed by law or policy
- the wording of a reference
- removal or narrowing of confidentiality or non-disparagement language
- a longer review period
- non-compete or non-solicit terms
If you are age 40 or older, special federal rules may apply to some waivers of age discrimination claims, including review and revocation periods in certain situations. Those rules are technical, and state laws may add more protections, so it is especially important to get advice from a licensed attorney before signing.
You can also learn more at sign severance vs negotiate and severance agreement: before you sign.
If you are scared, under pressure, or new to the US
Employers sometimes give short deadlines or present severance during a stressful meeting. Feeling confused does not mean you have no options. You can ask for time to review, avoid signing on the spot, and speak with a licensed attorney about what the agreement means for you.
If English is not your first language, try to get the agreement explained in a language you understand. Workplace rights generally apply regardless of immigration status, and you do not need to be a US citizen to ask questions about your work rights. WorkRightMatch does not give legal advice, but we can help you get matched with an independent attorney who may offer a free consultation.
If you want more background first, see what counts as wrongful termination and workplace rights for immigrant workers.
Before you sign severance, read it carefully and get legal advice if you can. You may be giving up valuable rights, and a quick review by an independent attorney could help you make a more informed choice.