Practice Area
Severance Negotiations
Severance agreements are often presented at moments of pressure, with short deadlines and broad release language that can affect legal claims, compensation, equity, benefits, confidentiality, and future work. A careful review can materially change the outcome.
Helios Law helps employees understand severance offers, negotiate improved terms, and evaluate whether the agreement attempts to waive viable claims. Because contract, wage, and employment protections can vary under state law, our firms can work with local counsel or co-counsel where state-specific advice is needed. Schedule a severance review.
When should I get help with a severance agreement?
You should consider legal review when a severance package includes a release of claims, non-disparagement, confidentiality, restrictive covenants, equity treatment, repayment terms, cooperation obligations, or a short deadline to sign. Review is especially important if you suspect discrimination, retaliation, unpaid compensation, or a contract violation contributed to your separation.
Issues that commonly appear in severance agreements
Severance review often focuses on terms such as:
- Release of employment, wage, discrimination, or retaliation claims
- Severance pay amount and payment timing
- COBRA, benefits, and equity treatment
- Non-compete, non-solicit, or confidentiality terms
- Return-of-property, cooperation, or clawback provisions
Negotiation may also address broader employment concerns, including:
- How the separation is characterized internally or externally
- Reference language and future employment concerns
- Outstanding bonuses, commissions, PTO, or expenses
- Whether a worker over 40 received the disclosures required by law
- Whether the employee had real time to consider the agreement
Severance disputes often arise after events such as:
- Layoffs or restructuring
- Performance-based terminations
- Complaints about discrimination, harassment, or wages
- Executive or highly compensated departures
- Mergers, acquisitions, or leadership changes
Red flags can include:
- Pressure to sign immediately without review
- Underpayment relative to contract or company policy
- Releases that reach farther than necessary
- Attempts to waive claims or rights that may already be valuable
Do I need a lawyer to review my severance package?
A lawyer is especially helpful when the agreement could be improved or when signing it may close off legal claims. Ask:
- Am I being asked to release discrimination, retaliation, wage, or contract claims?
- Does the agreement properly address bonus, commission, equity, PTO, or expense issues?
- Are there non-compete, non-solicit, or confidentiality terms that could restrict my next job?
- Was my termination connected to protected activity, leave, complaints, or a protected characteristic?
- What rights do I have under the state law governing the agreement?
A short review can often identify negotiation leverage or prevent an unnecessary waiver of rights. Talk with Helios Law about your severance agreement.
What should I do before signing a severance agreement?
Do not sign on the spot. Review the full package, preserve records, and assess your leverage first:
- Save the full agreement and deadline notice
- Gather compensation records and employment documents
- Do not assume the first offer is fixed
- Avoid broad statements to HR before review
- Get legal advice before signing or countering
Review what you are giving up
Focus on the release language, restrictive covenants, confidentiality terms, and any cooperation obligations. The value of what you are waiving may exceed the severance being offered.
Document what may still be owed
Collect offer letters, contracts, commission plans, bonus plans, equity documents, handbooks, and recent pay records. These materials help assess whether the package omits compensation you may already have earned.
Negotiate from a position of clarity
A lawyer can help identify leverage, propose revisions, and assess whether claims under federal or state law should affect the negotiation strategy.
What can change in a severance negotiation?
A negotiation may improve the cash payment, timing, equity treatment, benefit continuation, reference language, carve-outs from restrictive covenants, and the scope of released claims. Value depends on the employee's role, contract rights, potential legal claims, and the employer's risk tolerance.
Do severance disputes go to court?
Many severance disputes resolve through negotiation before any lawsuit is filed. Litigation becomes more likely when the employer refuses to pay earned compensation, enforces unlawful restrictions, or conditions severance on waiving significant claims without adequate consideration.