A severance agreement can feel like the fastest way to close out a job loss. It can also waive key rights, including the right to sue for some workplace harms. A few direct questions can protect pay, benefits and future options.
Confirm what you are giving up
Once signed, the release language may block later claims tied to the job. California employers often ask for broad waivers, even when the dispute involves unpaid wages, bias or a disability-related issue. Not all of those waivers are enforceable under California law, which is another reason to scrutinize the release before signing.
Before agreeing, ask for severance terms in plain language. Employees at or above age 40 have federal protections that set a mandatory 21-day review period before signing and a 7-day window to withdraw consent afterward. An employer cannot reduce either period when the release includes a waiver of age discrimination claims.
Ask for money details in writing
After the scope is clear, the next risk is mix-ups about what you will get. A severance offer may combine final wages, unused vacation, bonuses, commissions or a separation payment. Use questions that force details, including these:
- What portion of the total payment is severance, as opposed to final wages or accrued vacation?
- When will each payment be made, and will it arrive in installments?
- How will the company categorize bonuses, commissions and equity awards?
- Does the agreement cover any job search or outplacement fees?
California law treats final wages and severance differently – final wages carry strict payment deadlines, while severance timing is set by the agreement. Ask for clear labels, payment dates and tax treatment for each amount. Those details matter most if a payment arrives late or short.
Ask about benefits and your reputation
Beyond money, health coverage, references and non-disparagement terms can shape your next opportunity. A well-negotiated agreement may include COBRA help, a neutral reference and a mutual non-disparagement clause – though California law limits how broadly employers can restrict what you say about your departure.
What to confirm before you respond to any offer
Before responding to any severance offer, confirm what you are releasing, what you are receiving and what the employer has agreed not to say about your departure. Those three questions cover most of the leverage available to you. If the terms are unclear or the release is broad, an employment lawyer can review the draft and identify provisions worth negotiating.