Severance Agreement Lawyer in California

Getting handed a severance agreement can feel like a lifeline and a trap at the same time. Your employer is offering money — but only if you sign away rights you may not fully understand. Before you put your name on that document, here is what a California severance agreement actually means, what you can negotiate, and when it makes sense to have a severance agreement lawyer look it over.

What a Severance Agreement Really Is

A severance agreement is a contract. In exchange for a payment (and sometimes continued benefits or a neutral reference), you agree to give up certain legal claims against your employer — most importantly, the right to sue for how your employment ended.

California does not require most employers to offer severance. It is usually voluntary or tied to a company policy or an existing employment contract. That means the terms are negotiable far more often than employees assume. The number on the first offer is rarely the employer's best and final position.

If you were pushed out under circumstances that may have been illegal, the release you are being asked to sign is exactly what protects the company. Understanding the value of what you are giving up is the whole point of a careful severance agreement review.

What You May Be Giving Up

A typical release asks you to waive claims such as:

• Wrongful termination and retaliation claims
• Discrimination and harassment claims under the Fair Employment and Housing Act (FEHA)
• Claims for unpaid wages, bonuses, or commissions (though wages already earned generally cannot be waived)
• The right to pursue a lawsuit or, in some cases, to speak publicly about your experience

Some rights cannot be signed away in California, no matter what the document says. You generally keep the right to file a charge with a government agency, to collect unemployment, to pursue a workers' compensation claim, and to report unlawful conduct. If your situation involves possible workplace sexual harassment or discrimination, recent law limits what an employer can force you to keep quiet about.

California Rules That Protect You

Two California laws are especially important when you review a severance offer:

1. The Silenced No More Act (SB 331). Severance and settlement agreements cannot stop you from discussing conduct you reasonably believe is unlawful — including harassment, discrimination, or retaliation. Any non-disparagement or confidentiality clause must include language preserving that right. The agreement must also notify you that you have the right to consult an attorney and give you at least five business days to consider it.
2. Restrictions on "no-rehire" clauses (AB 749). Employers generally cannot bar you from future employment with the company as a condition of settling a dispute.

If you are 40 or older, federal law (the Older Workers Benefit Protection Act) adds more protection: you must be given 21 days to consider the agreement (45 days in a group layoff) and 7 days to revoke after signing. A release of age claims that skips these steps may not be enforceable.

You can read more about your workplace rights through the California Civil Rights Department and the California Department of Industrial Relations.

What You Can Negotiate

Severance is not just about the check. Terms worth pushing on include:

• A larger payment or additional weeks of pay
• Extended health coverage or an employer COBRA subsidy
• A neutral reference and agreed-upon departure language
• Removal or narrowing of overly broad confidentiality, non-disparagement, or non-compete language
• Accelerated or preserved equity (stock options or RSUs)
• Payment of accrued but unused vacation (this is your money under California law regardless)

The stronger your potential legal claims, the more leverage you have. That is why it helps to understand the value of your claims before you negotiate, not after you have signed.

When to Have a Lawyer Review It

You do not need an attorney for every routine severance. But it is worth talking to a severance package lawyer or severance negotiation attorney if any of these apply:

• You believe you were fired for an illegal reason (discrimination, retaliation, whistleblowing, or wrongful termination)
• You are owed unpaid wages, commissions, or bonuses
• The severance amount is substantial or your role was senior
• The agreement contains broad releases, non-competes, or confidentiality terms you do not understand
• You are being asked to sign quickly or feel pressured

A short review can reveal whether the offer is fair, whether your claims are worth more than the payout, and what language should be changed. Learn more about how we help California workers on our employment law page.

Frequently Asked Questions

Should I sign a severance agreement?

Not automatically. Signing is reasonable when the offer is fair and you have no strong legal claims. If you suspect your termination was unlawful or you are owed wages, have the agreement reviewed first — signing usually ends your ability to sue.

Should I have a lawyer review my severance agreement?

It is a good idea whenever the stakes are meaningful or the terms are confusing. A lawyer can value your claims, spot unenforceable or illegal provisions, and often negotiate better terms that more than cover the cost of the review.

Can I still sue after signing a severance agreement?

Usually no — a valid release bars most claims you agreed to waive. However, you generally cannot waive certain rights (like already-earned wages or the ability to report unlawful conduct), and a release obtained through fraud, pressure, or that violates California law may be challenged. Get advice before you sign.

How long do I have to sign a severance agreement in California?

It depends. California's SB 331 requires at least five business days to consider agreements that release harassment or discrimination claims. Workers 40 and older generally get 21 days to consider (45 in a group layoff) and 7 days to revoke. Never let an employer rush you.

Can I negotiate my severance?

Yes. Severance terms are frequently negotiable — including the amount, benefits, references, and restrictive clauses. Your leverage grows with the strength of your potential legal claims.

Talk to a California Employment Lawyer Before You Sign

Once you sign, it is very hard to undo. If you have been offered a severance package anywhere in California, MMG Law Firm offers a free, no-obligation consultation to review the agreement, explain your options, and tell you honestly whether it is worth negotiating. We represent employees across California. Contact us today and get clear answers before that deadline passes.