Two business professionals, a woman and a man, sitting at a table with a laptop, signing a severance agreement document during a meeting in an office

Severance

Most employees in California are not automatically entitled to severance pay. Unless a severance agreement is promised in an employment contract or policy, employers are under no legal obligation to provide it. When severance is offered, it is usually because the employer wants something in return — almost always a release of liability for potential legal claims.

A severance agreement is a legal contract that typically provides a payment in exchange for the employee’s waiver of rights. In signing, the employee usually gives up the right to bring claims for wrongful termination, discrimination, harassment, retaliation, wage violations, or other Labor Code or FEHA claims. Once signed, that release is binding. That’s why it is crucial to understand what rights are being given up before agreeing to any severance terms.

Having an experienced employment attorney can make a major difference in the outcome. At Levine Labor Law, we help employees:

  • Evaluate leverage — determining whether you have potential claims (such as discrimination, retaliation, or unpaid wages) that increase the value of your negotiation;

  • Interpret the law — identifying whether the severance is fair, lawful, and compliant with California requirements (including clear waiver language, revocation rights, and older worker protections under the OWBPA);

  • Negotiate strategically — ensuring that payment amounts, timing, references, and confidentiality provisions align with your interests and are not overly one-sided; and

  • Protect your rights — confirming that the release doesn’t illegally waive claims that cannot be waived, such as those under the Labor Code or for future violations.

Employers typically offer severance to limit their legal exposure, not as a goodwill gesture. Understanding your legal rights, the strength of potential claims, and the leverage those claims create can transform a routine severance offer into a significantly better outcome.

At Levine Labor Law, we approach every severance negotiation with two goals: maximizing your financial recovery and protecting your future. We review the agreement, assess the risks, and negotiate from a position of legal strength — ensuring that you make an informed and strategic decision before signing away your rights.