Severance agreements are almost always negotiable. Before you sign, you should know what claims you are waiving, what restrictions you are agreeing to, and how much leverage you actually have.
A severance agreement is a contract. In exchange for a severance payment, the employer asks you to waive claims, agree to confidentiality and non-disparagement terms, and often to comply with non-compete or non-solicit obligations. The waiver typically covers every legal claim you have against the employer, whether you know about it or not. Once signed, those claims are gone.
Severance is almost always negotiable, but the leverage is not always obvious. The strongest leverage points are:
Severance work is offered on either a flat-fee review (you receive a written analysis and recommended counter, and you handle the negotiation) or a full-engagement contingency or hybrid arrangement (the firm negotiates directly with the employer's counsel). Which makes sense depends on the size of the package, the strength of the underlying claims, and your goals.
It depends on leverage, but realistic improvements typically range from a few weeks of additional pay to a full doubling or tripling of the offered amount when underlying legal claims are strong. Beyond the dollar figure, valuable improvements often include narrowing a non-compete, adding mutual non-disparagement, securing a positive reference, and protecting equity vesting.
Not always, and the deadline is often softer than it appears. ADEA waivers (for employees 40+) require the employer to give you 21 days to consider the agreement, which is statutory. Other deadlines are negotiable. Even when a deadline is firm, requesting a short extension to consult counsel is rarely refused.
You retain the right to file a charge with the EEOC even with a release in place, but you typically cannot recover individual damages from that charge. Some federal claims (Fair Labor Standards Act minimum wage and overtime claims, for example) cannot be waived through a private agreement at all. The carve-outs matter and should be expressly preserved in the agreement.
Almost never. The offer is a starting point, and employers expect responses. The risk of rescission rises if the negotiation is hostile or includes legal threats; the risk falls when the conversation is professional and grounded in specific issues. Working with counsel keeps the tone right.
Discuss your situation with attorney Sean H. Sobel. No obligation, no cost to talk.
Schedule a Consultation ›