You just lost your job, and now there's a folder on the table with a severance offer in it. It looks like good news! A check, maybe a few weeks of pay, a clean way to move on. But before you sign anything, it's worth slowing down for five minutes, because that folder is also asking you to give something up.
What a Severance Agreement Actually Is
A severance agreement is a contract, not a formality. In exchange for the money or benefits being offered, most people almost always agreeing to release your employer from legal claims (including ones you may not even know you have yet.)
Here'swhat that means in plain English:
California does not require employers to offer severance at all. If you're getting an offer, that's a choice your employer made. Signing typically waives your right to sue for things like discrimination, unpaid wages, or wrongful termination, even if you didn't realize those issues existed when you signed.
You're entitled to time to review the agreement. Depending on the terms offered, you may have several days (and sometimes longer) to look it over and talk to a lawyer before deciding. Some rights can't be signed away no matter what the paper says. For example, a workers' compensation claim generally can't be waived through a severance agreement. Non-compete clauses tucked into severance agreements are usually unenforceable in California. State law is unusually protective of your right to keep working in your field, so a broad non-compete buried in the fine print often won't holdup.
Common Mistakes People Make
Signing quickly because it feels like a formality. Employers sometimes frame it that way, but every signature is a legal decision, not paperwork.
Assuming the first number is the final number. Severance offers are often a starting point, not a fixed amount (especially if there's any question about how or why your employment ended.)
Not reading the non-disparagement or confidentiality clauses closely. These can restrict what you're allowed to say about your job, your employer, or even the severance itself, sometimes for years.
YourQuick Self-Check
Before you sign anything, ask yourself:
1. Do I understand exactly which legal claims I'm giving up?
2. Is there anything unusual about how my employment ended: timing, comments made, a complaint I filed?
3. Have I been given enough time to actually read this, or am I being rushed?
4. Does the agreement include a non-compete, non-solicitation, or unusually broad non-disparagement clause?
5. HaveI had someone look at this?
If you answered "no" or "not sure" to any of these, that's worth pausing on.
What to Do Next
A severance agreement is often negotiable, and it always deserves a second set of eyes before you sign. Infinity Law Group offers a free consultation to review your severance offer, explain exactly what you'd be giving up, and how to negotiate better terms. There's no cost to find out where you stand.
Call us before you sign.
