Severance Agreement Review

Labor Law PC reviews severance agreements for employees throughout Los Angeles and California, from our Santa Monica office. We represent workers only, never employers, and we read these agreements the way opposing counsel wrote them: looking for what they take from you. If your agreement has a countdown attached, call (877) 775-2267 now and we will work within your deadline. You can read more about how severance works on our main severance agreements page.

What Is in a Release of Claims, and What Do You Give Up?

The heart of nearly every severance agreement is the release of claims, sometimes called a waiver and general release. In plain English, it is your promise not to sue. A typical California release covers:

• Wrongful termination claims, including termination in violation of public policy
• Discrimination claims under the Fair Employment and Housing Act (FEHA) and federal law: age, race, gender, disability, and other protected characteristics
• Harassment and retaliation claims, including whistleblower retaliation
• Certain wage-related and contract claims, such as disputes over bonuses, commissions, or promised benefits
• Defamation and related personal claims arising from your employment or termination
• Unknown claims. Most agreements include a Civil Code section 1542 waiver, which means you release even claims you do not know about yet. That single paragraph is one of the most consequential in the document.

Beyond the release, agreements commonly add continuing obligations: confidentiality, non-disparagement, cooperation in future litigation, return of property, and sometimes no-rehire provisions. Each one deserves scrutiny, because these obligations survive long after the severance is spent.

Some things generally survive a release no matter what the agreement says: your right to unemployment benefits, workers' compensation rights (which require agency approval to settle), vested retirement benefits, and your right to file or participate in charges with government agencies like the California Civil Rights Department (CRD) or the EEOC.

Terms That Are Unenforceable or Restricted in California

California polices severance agreements more aggressively than almost any other state. A careful review often finds terms that overreach what the law allows:

• Silence about unlawful conduct. Under SB 331, the Silenced No More Act, a separation agreement cannot prevent you from discussing or disclosing information about unlawful acts in the workplace, such as harassment, discrimination, retaliation, or other conduct you reasonably believe is unlawful. Agreements are required to preserve that right expressly.
• Overbroad non-disparagement clauses. Non-disparagement provisions are permitted, but they must carve out your right to speak about unlawful workplace conduct. A clause without that carve-out is a red flag about the entire document.
• No attorney notice or consideration time. Government Code section 12964.5 requires the employer to notify you of your right to consult an attorney and give you a reasonable period of at least five business days to do so. If you are 40 or older, the federal Older Workers Benefit Protection Act generally requires at least 21 days to consider a release of age claims (45 days in many group layoffs) plus a 7-day revocation period.
• Severance conditioned on wages already owed. Labor Code section 206.5 prohibits requiring a release in exchange for wages that are concededly due. Your final paycheck, accrued vacation, and earned commissions are not severance; they are yours.
• Non-compete provisions. Business and Professions Code section 16600 makes non-compete clauses void in California, and recent legislation requires employers to notify affected workers that such clauses are unenforceable. A severance agreement cannot revive them.
• Waivers of unemployment benefits or agency charges. You cannot be made to give up unemployment insurance or your right to report violations to government agencies.

Finding an unenforceable term does not just delete that clause; it can change your entire negotiating position. And remember that the claims you would be releasing carry their own deadlines, which vary by claim, so a prompt review protects both the decision and your fallback options.

Should You Sign? How Our Review Works Before Your Deadline

Whether to sign is a judgment call that depends on what you would be trading away. Our review process is built to give you that answer quickly:

1. Send us the agreement. Along with your deadline, offer letter, recent pay stubs, and a short timeline of how your employment ended.
2. We review every clause. The release, the 1542 waiver, confidentiality, non-disparagement, equity treatment, and every continuing obligation, checked against current California law.
3. We assess your potential claims. If your termination followed a complaint, a medical leave, a pregnancy, an injury, or a protected characteristic, the claims you are being asked to release may be worth more than the offer.
4. You get a clear recommendation. Sign, negotiate, or decline and pursue your claims. If negotiation is the right move, our severance negotiation team takes it from there.

If your deadline is days away, say so when you call. Consideration periods exist for exactly this purpose, and employers can and often do extend them on request.

Frequently Asked Questions About Severance Agreement Review

• Should I sign my severance agreement without a lawyer?

  We would not recommend it, and California law agrees enough that employers are required to tell you that you may consult an attorney. A release of claims is permanent. A review is fast, and the downside of signing blind can be enormous.

• What does a review actually check?

  The scope of the release, the Civil Code 1542 waiver of unknown claims, unenforceable terms under SB 331 and other California statutes, continuing obligations like non-disparagement and no-rehire clauses, treatment of equity and commissions, and whether the amount offered reflects the claims you would give up.

• Can my employer pressure me to sign the same day?

  Employers offering separation agreements must give you a reasonable period, not less than five business days, and must tell you that you can consult a lawyer. Workers 40 and older releasing federal age claims generally get at least 21 days. High-pressure tactics are a reason to slow down, not speed up.

• What if the agreement violates SB 331?

  Provisions that try to silence you about unlawful workplace conduct are restricted by law, and an agreement drafted in violation of these rules may give you significant leverage, or in some cases render terms unenforceable. Bring it to us and we will assess your options.

• What happens to my final paycheck if I refuse to sign?

  Nothing changes. Final wages are due under Labor Code sections 201 to 203 regardless of any severance agreement, and Labor Code 206.5 prohibits conditioning owed wages on a release. If your employer withholds your final pay to force a signature, that itself may create a claim.

Related Practice Areas

• Severance Agreements: our main guide to severance packages under California law.
• Severance Negotiation: when the review shows you deserve more, here is how the terms get improved.
• Wrongful Termination: if your firing was unlawful, the release may be erasing your most valuable claim.

Get a Free Severance Agreement Review in Los Angeles

Do not let a deadline make the decision for you. Call (877) 775-2267 or contact us for a free, confidential review of your severance agreement by an employee-side California employment lawyer. No fees until we win.