Severance offers usually arrive with a deadline and a tone that suggests the terms are standard. Some of them are. But a severance agreement is a contract in which you give up the right to sue, and the value of what you are giving up is rarely obvious from the document itself.
These are the five clauses we look at first.
1. The scope of the release
Most releases are broad: all claims, known and unknown, through the date of signing. That is not automatically unfair, but it means every potential claim gets resolved for the number on the page. If you have unpaid wages, unreimbursed expenses, unpaid commissions, or a discrimination claim, those are being settled too, usually without ever being priced.
2. Non-compete and non-solicit language
California is unusually hostile to non-compete clauses, and recent legislation has strengthened that position considerably, including provisions making it unlawful to require an employee to sign a non-compete that is void here. Agreements drafted for other states are presented to California employees all the time. It is worth knowing which restrictions actually bind you before you plan your next move.
3. Age-related waiver requirements
If you are 40 or over, a valid waiver of age discrimination claims has to satisfy specific requirements, including adequate consideration and defined periods to consider and revoke. Agreements that skip these steps may not accomplish what the employer intended.
4. Confidentiality and non-disparagement
California has significantly limited the use of these provisions to prevent employees from discussing unlawful conduct in the workplace. A clause that appears to bar you from ever mentioning what happened may be narrower than it reads, or unenforceable in part.
5. What is missing
Often the most valuable negotiation is over terms the draft does not address: how your departure will be characterized, what a reference will say, the timing of payments, continued benefits, and the treatment of unvested equity or a pending bonus.
The practical point
Severance is negotiable far more often than people assume, and there is dramatically more room before you sign than after. A review is quick. If the offer is already fair, we will tell you that too.