California Severance Agreement Review and Negotiation

A severance agreement is more than an offer of additional pay. It is a binding contract that usually requires you to release legal claims against your employer and may impose continuing obligations concerning confidentiality, non-disparagement, cooperation, company information, and other matters.

Before signing, you should understand both what you will receive and what you will be giving up.
We provide severance agreement review and evaluation services for California employees. Depending on the circumstances, representation may also include negotiating with the employer for increased severance or improved agreement terms. Contact us if you need assistance with your severance agremeent. 

What a Severance Review Should Address
A useful severance agreement review should involve more than translating the contract into plain English. It should evaluate the agreement together with the events leading to the employee's departure.
The review may include:

• The amount and timing of the severance payment;
• The scope of the release of claims;
• Whether potential discrimination, retaliation, leave, accommodation, wage, contract, or other employment issues should be investigated;
• Confidentiality and non-disparagement provisions;
• References and how the employer will describe the separation;
• Treatment of earned wages, bonuses, commissions, accrued vacation, equity, and benefits;
• Cooperation, return-of-property, and continuing-assistance obligations;
• Arbitration, enforcement, attorney-fee, and repayment provisions;
• Whether any language could interfere with future employment or professional reputation; and
• Whether the agreement accurately states the reason for separation and the employee's eligibility for rehire or unemployment benefits.

The objective is to help you make an informed decision: accept the offer, request specific revisions, negotiate for additional compensation, or preserve and pursue a potential claim instead of signing a broad release.

A Potential Lawsuit Is Not the Only Source of Negotiating Leverage
Employees sometimes assume that severance can be negotiated only if they have a clear and valuable wrongful-termination claim. That is too narrow. Some workplace circumstances may be troubling or unfair without ultimately supporting a legal claim strong enough to justify filing a lawsuit. The evidence may be incomplete. The employer may have a legitimate explanation that would be difficult to disprove. The employee may have suffered limited recoverable damages. A disputed action may be poor management without being unlawful.
Even in those situations, the facts and available evidence may still provide practical leverage in a severance negotiation. Depending on the circumstances, relevant evidence may include:

• A termination occurring shortly after an internal complaint, request for leave, request for accommodation, or other workplace dispute, creating at least some suspicion of unlawful retaliation. 
• Strong performance reviews followed by sudden criticism or an unexpected performance-improvement plan;
• Changing or inconsistent explanations for the termination;
• Emails, messages, evaluations, or witness information that conflict with the employer's stated reason;
• Unequal treatment compared with similarly situated employees;
• A long record of service or significant contributions to the company;
• Unresolved questions concerning commissions, bonuses, equity, expenses, vacation, or other compensation;
• Departures from the employer's normal policies or practices;
• Statements or conduct that create avoidable factual, legal, or reputational risk for the employer; or
• Terms the employer may reasonably improve in exchange for a prompt, orderly, and final resolution.

None of these circumstances guarantees that an employer will increase its offer. An employer may decline to negotiate, withdraw an offer where legally permitted, or insist that its initial terms are final. The strength of the leverage depends on the evidence, the governing law, the amount at issue, and the employer's practical assessment of risk.

The purpose of the evaluation is to distinguish genuine leverage from understandable frustration and to present the strongest available points credibly and proportionately.

Severance Terms Other Than Money May Matter
Additional compensation is often the main concern, but other changes may be just as important to an employee's next career step. Depending on the situation, it may be appropriate to request:

• Continued salary or health-insurance contributions for a defined period;
• Payment or clarification concerning a bonus, commission, or equity interest;
• A neutral or agreed reference;
• An agreed internal or external statement regarding the departure;
• Mutual or narrower non-disparagement language;
• Removal or revision of unnecessary confidentiality restrictions;
• Confirmation concerning personnel records, rehire status, and unemployment benefits;
• A longer exercise period for vested stock options, where available;
• Outplacement assistance or another transition benefit; or
• More balanced enforcement, cooperation, and attorney-fee provisions.

The appropriate requests should reflect the employee's actual priorities. A focused proposal supported by specific facts is usually more persuasive than a long list of demands.

How the Review and Negotiation Process Works
1. Agreement and Document Review
You provide the proposed severance agreement, the signing deadline, and the most relevant employment documents. These may include an offer letter or employment agreement, recent performance reviews, compensation or equity documents, termination communications, and key emails or complaints.
2. Evaluation and Consultation
We discuss the agreement, the circumstances of your separation, possible legal issues, the practical value of the offer, and your priorities. You receive a candid assessment of the strengths, weaknesses, risks, and realistic options.
3. Negotiation, When Appropriate
If negotiation appears worthwhile and we separately agree on representation, the firm may propose revisions or communicate directly with the employer or its counsel. The strategy may address compensation, agreement language, or both.

No attorney can guarantee that an employer will improve a severance offer. The goal is to identify and use legitimate leverage effectively while avoiding arguments or demands that could undermine credibility or unnecessarily delay a resolution.
When to Seek Review
Seek advice before signing the agreement and as early in the review period as practical. Severance offers often contain firm deadlines, and a careful evaluation may require review of additional documents or follow-up questions.
Do not assume that every employee automatically receives the same amount of time to consider or revoke an agreement. Some federal and California protections apply only in particular circumstances, including certain releases involving workers age 40 or older. The agreement and the employee's circumstances should be reviewed individually.

Arkady Itkin has represented employees and employers in California employment disputes and brings substantial litigation experience to the evaluation of workplace claims and negotiation risk. Each matter receives direct attorney review and practical advice focused on the evidence and the client's objectives.
To request a consultation, submit:

• The severance agreement;
• The deadline for signing;
• A brief chronology of the events leading to your separation; and
• The principal changes or concerns you would like to discuss.

We provide consultations by Zoom and phone to employees throughout California and responds to inquiries within one business day.