Orange, California
Before you sign a severance agreement
There is a number on the first page and a deadline on the last one. What matters is in between.
Free · Confidential · Reviewed by the attorney · Typically replies within 48 hours
Told to sign by Friday? If you are 40 or older, federal law generally guarantees you time to consider. Use it.
Those are statutory minimums, not promises about your situation.
Deadlines depend on the facts of your situation. Do not rely on this page to calculate yours.
Most people read a severance agreement for the first time on the day they are told their job is ending. It is a contract, written by the company’s lawyers. Reading it before the deadline runs is the point of the deadline.
What does a severance agreement give up?
In exchange for money, a severance agreement typically asks you to release every claim you have against the company as of the date you sign, including claims you do not yet know about, through a waiver of California Civil Code §1542. It usually adds confidentiality, non-disparagement, return of devices and documents, and cooperation in future litigation.
The claims released without discussion are often the valuable ones: discrimination and harassment under the Fair Employment and Housing Act, retaliation and whistleblower claims under Labor Code §1102.5, and wrongful termination in violation of public policy.
Signing is not the wrong choice. Signing without knowing what the release is worth is a different question.
What to check before signing: a 10-point checklist
1. The deadline, and the date you received it
The clock generally runs from the day the agreement was handed to you. If you are 40 or older, compare that window to the OWBPA minimums below.
2. Whether the severance is actually additional
Earned wages, accrued vacation, and reimbursements are owed regardless. Money already owed is not consideration for a release.
3. The scope of the release
Whether it reaches claims “known and unknown,” whether it names Civil Code §1542, and whether it releases officers, affiliates, insurers, and successors too.
4. What is carved out
Workers’ compensation, unemployment benefits, vested retirement benefits, indemnification rights, and the right to file an agency charge belong in the carve-out paragraph.
5. The non-disparagement clause
Government Code §12964.5 bars a separation agreement from preventing disclosure of unlawful acts in the workplace, and requires carve-out language saying so.
6. Non-compete or non-solicitation language
Non-competes are void under Business and Professions Code §16600, but language carried over from an older contract is worth flagging.
7. Confidentiality and its limits
Code of Civil Procedure §1001 restricts confidentiality provisions in settlements of certain harassment, discrimination, and retaliation claims.
8. Benefits, COBRA, and timing
The last day of coverage, any employer COBRA contribution, and the treatment of commissions, bonuses, and equity.
9. Unemployment
An agreement cannot require you to waive unemployment benefits, though how the separation is characterized can matter to an EDD claim.
10. The value of what you are releasing
The one item the document will not tell you. It turns on the facts: what happened, what was documented, what those claims would be worth.
If you are 40 or older: the OWBPA rules
The Older Workers Benefit Protection Act (29 U.S.C. §626(f)) sets what a waiver of age discrimination claims must include to count as knowing and voluntary.
| Requirement | Individual separation | Group layoff or exit incentive program |
|---|---|---|
| Time to consider the agreement | At least 21 days | At least 45 days |
| Revocation period after signing | 7 days | 7 days |
| Written advice to consult an attorney | Required | Required |
| Disclosure of job titles and ages of those selected and not selected | Not required | Required |
| Waiver of future claims | Not permitted | Not permitted |
A waiver that misses these conditions may be unenforceable as to age claims even after signature, depending on its terms and how it was presented.
If any of this sounds familiar, let’s find out where you stand.
Tell us what happened in plain English: free, confidential, and reviewed by the attorney. If it isn’t a case, we’ll tell you that too.
What a California employer cannot require
Final wages cannot be conditioned on a release
Labor Code §206.5 provides that an employer may not require a release of wages due as a condition of paying them, and such a release is void. Undisputed final wages belong to you whether or not you sign. See wage and hour.
Non-competes are void, and enforcing them is unlawful
Business and Professions Code §16600 voids contracts restraining a person from engaging in a lawful profession or trade. SB 699 (§16600.5) makes it unlawful to enter into or attempt to enforce a void non-compete, including one signed in another state, and creates a private right of action with attorney’s fees. AB 1076 (§16600.1) required employers to notify affected employees in writing that such clauses are void.
Silence about unlawful conduct cannot be bought
Government Code §12964.5 bars a separation agreement from restricting disclosure of unlawful acts in the workplace, requires notice of the right to consult counsel, and requires at least five business days to do so.
Forum and choice-of-law terms are limited
Labor Code §925 restricts requiring a California employee to litigate outside California.
Can a severance agreement be negotiated?
Often, yes. An opening offer is a proposal. The terms most frequently revisited are the amount, any COBRA contribution, the neutrality of a reference, overbroad clauses, and how the separation is characterized. Leverage comes from the strength of the claims being released, not the tone of the request.
Severance review at DeRosa Law Firm
Taylor DeRosa reads the agreement against the facts of your employment, values the claims it releases, and explains in writing what it does and where the room is.
He is a sole practitioner. The person reading your agreement is the person you spoke to.
Severance review is offered on a flat-fee or hourly basis, separate from contingency representation. Where a matter proceeds on contingency instead, there is no attorney’s fee unless we obtain a recovery for you; clients may be responsible for court costs and litigation expenses, as set out in the written fee agreement. If the review surfaces claims worth pursuing, that conversation happens next.
We represent employees across Orange County, Los Angeles, the Inland Empire, and Southern California.
Common questions, answered
Should I sign my severance agreement?
That turns on what the release covers and what those claims are worth, neither of which is visible from the dollar figure. Many people have the agreement reviewed before the deadline so they can weigh the offer against what they are giving up. A review preserves options; a signature ends them.
How long do I have to decide?
Whatever the agreement says, with statutory minimums on top. Employees 40 and older generally get at least 21 days for an individual offer or 45 days in a group layoff, plus 7 days to revoke after signing. A non-disparagement term adds at least five business days under Government Code §12964.5.
Can my employer withhold my last paycheck until I sign?
No. Labor Code §206.5 prohibits requiring a release of wages due as a condition of paying them, and such a release is void. Earned wages, accrued vacation, and final-pay timing rules apply whether or not you sign.
What makes a severance agreement unenforceable?
Common grounds include a failure to meet OWBPA requirements for employees 40 and older, a release of wages already due under Labor Code §206.5, provisions conflicting with Government Code §12964.5, and fraud in how the agreement was presented.
Does a general release cover everything?
Not everything. Workers’ compensation claims, unemployment benefits, vested retirement benefits, and claims arising after signing generally survive. The right to file a charge with the California Civil Rights Department or the EEOC generally cannot be waived, though a release can limit money recovered through it.
My agreement has a non-compete. Is it enforceable?
California voids non-compete clauses under Business and Professions Code §16600, subject to narrow exceptions such as the sale of a business. SB 699 makes attempting to enforce a void non-compete unlawful and gives the employee a private right of action.
I am still employed and was offered severance to leave. Does that change anything?
It can. An offer that arrives after a complaint, a leave request, or a report of something unlawful puts the timing itself in play, and timing is often central to a retaliation claim.
Related: wrongful termination · discrimination · retaliation and whistleblower · wage and hour · glossary
Talking costs nothing. Waiting can.
Deadlines in California are short and unforgiving: some claims expire in months, not years. A free, confidential case review tells you where you stand while every option is still open. Reviewed by the attorney. Typically replies within 48 hours.
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Taylor E. DeRosa, Attorney at Law
Orange, California
(714) 261-9895
hello@derosalawfirm.com
Representing employees and injured people in Orange County, Los Angeles County, the Inland Empire (Riverside and San Bernardino Counties), and throughout Southern California.
Attorney Advertising. DeRosa Law Firm. Taylor E. DeRosa, responsible attorney for this communication. California State Bar No. 319853. Address of record: 5811 Pine Avenue, Suite B, Chino Hills, CA 91709. Serving Orange County, Los Angeles County, the Inland Empire, and all of Southern California. Prior results do not guarantee a similar outcome. The information on this website is general information, not legal advice, and reading it does not create an attorney-client relationship.