Take the First Step
May 5, 2025 · Benjamin J. Treger
What You’re Giving Up When You Sign
Your employer just handed you a severance agreement. Maybe they offered two weeks of pay, or four, or eight. Maybe they were sympathetic about it. Maybe they told you it was “standard.”
It is not a gift. It is a transaction. And in most cases, you are the one giving up more than you are getting.
Nearly every severance agreement contains a general release of claims. This is the core of the deal: in exchange for the severance payment, you agree to release the employer from all legal claims, known and unknown, arising out of your employment. That includes wrongful termination, discrimination, harassment, retaliation, wage theft, and anything else you might have a right to pursue.
Once you sign, those claims are gone. You cannot change your mind later.
Employers set the initial offer based on what they think you’ll accept, not based on what your claims are worth. If you have strong potential claims (discrimination, retaliation, unpaid wages), the value of your release is significantly higher than what’s on the table. An attorney can evaluate the strength of your claims and negotiate a severance that reflects their actual value.
Beyond the release, severance agreements often include non-disparagement clauses (you can’t say anything negative about the company), non-solicitation clauses (you can’t recruit former colleagues), confidentiality provisions (you can’t tell anyone about the agreement or its terms), and cooperation clauses (you must assist the company in future litigation). Each of these limits your freedom and can have real consequences if violated.
Under California law, employers cannot pressure you into signing immediately. If the agreement involves a release of age discrimination claims (and you’re over 40), federal law gives you 21 days to consider it and 7 days to revoke after signing. Even without that requirement, a legitimate employer will give you time to have the agreement reviewed by an attorney.
If your employer is pressuring you to sign on the spot, that itself is a red flag.
At Treger Legal, we review severance agreements and advise employees on whether to sign, negotiate, or walk away. The consultation is free.
This post is for informational purposes only and does not constitute legal advice. Consult with a qualified employment attorney about your specific situation.