California Severance Attorney

Protect Your Rights Before You Sign a Severance Agreement 

Being offered a severance agreement can feel reassuring, especially after an unexpected termination or layoff. However, the agreement may require you to give up valuable legal rights in exchange for compensation that may be negotiable. 

A severance agreement is a legally binding contract. Once signed, it may release claims involving discrimination, retaliation, harassment, unpaid wages, commissions, bonuses, wrongful termination, or other workplace violations. 

McGonigle Law represents employees throughout California in severance agreement reviews and negotiations. Our attorneys can evaluate the proposed agreement, identify potential claims, explain what you may be giving up, and negotiate for stronger financial terms and protections. 

Call McGonigle Law at (800) 713-5260 before signing your severance agreement. 

What Is a Severance Agreement? 

A severance agreement, sometimes called a separation agreement, termination agreement, or release agreement, sets out the terms under which an employee leaves a company. 

The agreement may address: 

• Severance pay 

• Continued health insurance 

• Bonuses and commissions 

• Accrued paid time off 

• Equity compensation and stock options 

• Confidentiality obligations 

• Non-disparagement provisions 

• Return of company property 

• References and future employment verification 

• Cooperation requirements 

• Releases or waivers of legal claims 

California generally does not require employers to provide severance pay unless it is required by an employment agreement, company policy, collective bargaining agreement, or another enforceable obligation. The severance being offered is often consideration for the employee’s agreement to release potential claims against the employer.  

Why Have a California Severance Attorney Review the Agreement? 

Employers usually prepare severance agreements to protect the company. The terms may appear routine, but even a short agreement can containbroad language with lasting consequences. 

An attorney can help determine whether: 

• The proposed payment fairly reflects your position, tenure, compensation, and potential claims 

• You may have leverage to negotiate a larger severance package 

• The agreement releases discrimination, retaliation, harassment, or wage claims 

• Earned wages, commissions, bonuses, or vacation pay have been omitted 

• Confidentiality or non-disparagement provisions are too broad 

• The agreement restricts your ability to work or communicate with government agencies 

• The agreement affects stock options, equity, retirement benefits, or deferred compensation 

• The employer is asking you to waive rights without providing sufficient additional value 

A release of employment claims is a serious decision and should be reviewed carefully before it is signed.  

Can a Severance Package Be Negotiated? 

Yes. A severance offer is not always final. 

Depending on the circumstances, an employee may be able to negotiate: 

• Additional severance pay 

• A longer period of salary continuation 

• Continued health insurance or COBRA contributions 

• Payment of commissions or bonuses 

• Accelerated or extended equity vesting 

• A neutral or positive reference 

• Mutual non-disparagement language 

• Removal or narrowing of restrictive provisions 

• Reimbursement of attorney’s fees 

• Extended time to exercise stock options 

• Changes to the stated reason for separation 

• Outplacement assistance 

• Protection against future interference with employment 

Negotiating leverage may be stronger when the employee has potential claims involving discrimination, retaliation, whistleblowing, harassment, unpaid compensation, protected leave, breach of contract, or wrongful termination. 

Final Wages and Vacation Pay Are Not Severance 

Employers should not characterize money already owed to an employee as severance consideration. 

In California, terminated employees generally must be paid all wages due at the time of termination. Earned and unused vacation pay must also generally be included in the final wages.  

Potentially separate amounts may include: 

• Final salary or hourly wages 

• Earned commissions 

• Contractually earned bonuses 

• Accrued and unused vacation 

• Reimbursable business expenses 

• Other vested compensation 

A severance payment should normally provide something of value beyond amounts the employee is already entitled to receive. 

Severance Agreements for Employees Age 40 and Older 

Employees age 40 or older may receive additional protections when a severance agreement asks them to waive claims under the Age Discrimination in Employment Act. 

Depending on the circumstances, a valid age-discrimination waiver may need to provide: 

• Clear and understandable language 

• Specific reference to rights under the Age Discrimination in Employment Act 

• Advice to consult with an attorney 

• At least 21 days to consider an individual agreement 

• At least seven days to revoke the agreement after signing 

• Additional disclosures in certain group termination or reduction-in-force situations 

The requirements may differ for group layoffs and other employment separation programs.  

Warning Signs That You Should Speak With an Attorney 

You should consider having the agreement reviewed promptly when: 

• You believe you were terminated because of discrimination or retaliation 

• You recently reported harassment, fraud, safety concerns, wage violations, or illegal conduct 

• You were terminated while on medical, disability, pregnancy, or family leave 

• The company is pressuring you to sign immediately 

• The agreement contains a broad release of all known and unknown claims 

• You are owed commissions, bonuses, expenses, or other compensation 

• Your employer is offering little or no severance despite long service 

• You have stock options, restricted stock, profit-sharing rights, or deferred compensation 

• You are being asked to accept restrictive confidentiality or non-disparagement terms 

• The employer’s stated reason for termination appears inaccurate or misleading 

• You are part of a layoff affecting older workers 

• You are an executive, professional, or highly compensated employee 

Executive Severance Agreements 

Executives and senior employees often face additional issues that require careful review. 

An executive severance package may involve: 

• Equity and stock options 

• Deferred compensation 

• Performance bonuses 

• Change-in-control provisions 

• Carried interest 

• Partnership or ownership rights 

• Restrictive covenants 

• Intellectual property provisions 

• Board resignations 

• Cooperation clauses 

• Indemnification 

• Reputation and public-announcement terms 

McGonigle Law can assess the full economic value of the proposed package and negotiate terms designed to protect the employee’s career, compensation, and professional reputation. 

Do Not Wait Until the Deadline 

Severance agreements often contain short response deadlines. Waiting until the last day can reduce the time available to investigate potential claims and negotiate better terms. 

Before signing: 

• Save a complete copy of the agreement 

• Preserve relevant emails, evaluations, compensation records, and workplace communications 

• Do not remove confidential company materials you are not entitled to possess 

• Write down the circumstances surrounding your termination 

• Identify unpaid compensation and benefits 

• Speak with an employment attorney 

How McGonigle Law Can Help 

Our attorneys can: 

• Review the severance agreement 

• Explain the legal and financial consequences in plain language 

• Identify potential employment claims 

• Evaluate unpaid wages, commissions, bonuses, or benefits 

• Negotiate severance pay and other terms 

• Address confidentiality and non-disparagement provisions 

• Review equity, stock options, and executive compensation 

• Help protect your professional reputation and future employment 

• Advise you before you release legal claims 

Contact a California Severance Attorney 

Do not sign a severance agreement without understanding what you are receiving and what rights you may be giving up. 

McGonigle Law represents employees throughout California in severance reviews, negotiations, and related employment disputes. 

Call (800) 713-5260 today to speak with our office about your severance agreement. 

Frequently Asked Questions 

Is severance pay required in California? 

California law generally does not require an employer to provide severance pay unless the obligation comes from a contract, company policy, collective bargaining agreement, or another enforceable plan.  

Should I sign my severance agreement immediately? 

No. You should take the time allowed to review the agreement and consider speaking with an attorney. Signing may permanently release valuable legal claims. 

Can an attorney negotiate a higher severance package? 

Potentially. The outcome depends on your employment history, compensation, position, potential claims, employer practices, and the terms already offered. 

Can my employer withhold my final paycheck until I sign? 

Generally, wages already earned cannot be conditioned on signing a severance agreement. Discharged California employees are generally entitled to final wages at termination, including accrued vacation pay.  

What rights could I waive? 

The agreement may release claims involving discrimination, retaliation, harassment, wrongful termination, wages, bonuses, commissions, leave rights, breach of contract, and other employment-related issues. 

How long do I have to consider a severance agreement? 

The deadline depends on the agreement and applicable law. Employees age 40 or older who are asked to waive federal age-discrimination claims may have specific consideration and revocation periods. 

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