Should I Sign That Severance Agreement? What California Employers Can No Longer Ask You to Waive

Quick answer: Not before you understand what you're giving up — and what the offer says about how the employer values your claims. California law now sharply limits what severance agreements can demand: they cannot gag you about unlawful conduct in the workplace, must tell you that you have the right to consult a lawyer, and must give you at least five business days to do it. A first severance offer is an opening bid, and it's frequently negotiable — especially if the termination touches any protected reason.

What a severance agreement really is

It's a purchase. The employer is buying your legal claims — every one of them, known and unknown — usually for a few weeks of pay. Whether that's a fair price depends entirely on what your claims are worth, which is exactly what most people don't know when the agreement is slid across the table. Someone fired three weeks after reporting harassment is being asked to sell a retaliation claim; two weeks' severance for that is not a fair trade.

What California no longer lets employers demand

The rules changed significantly in recent years, and many employers are still using old templates:

• No gag clauses about unlawful conduct. Under California's Silenced No More Act (Gov. Code § 12964.5), a severance agreement cannot stop you from discussing or disclosing harassment, discrimination, retaliation, or other conduct you have reason to believe is unlawful. Clauses that try are unenforceable.


• Notice and time to get advice. The agreement must notify you of your right to consult an attorney and give you a reasonable period — not less than five business days — to do so. "Sign today or the offer expires" violates the spirit and often the letter of this rule.


• Age 40+? You get more. Releasing federal age discrimination claims requires 21 days to consider and 7 days to revoke after signing.


• Some things can't be waived at all. Unemployment benefits, workers' compensation claims (without agency approval), your right to testify or cooperate with government investigations, and claims that haven't accrued yet.

How to think about the number

Employers rarely explain how they arrived at the figure — but you should. Relevant factors: your tenure and salary, how replaceable you are, the strength of any legal claims, what you've seen others receive, and how badly the employer wants a release and quiet exit. When a termination follows a complaint, a leave, or a protected characteristic, the claims being released may be worth multiples of the offer. That's not a reason to refuse severance — it's a reason to negotiate it with someone who knows what the claims are worth.

Frequently asked questions

If I sign, can I still report the company to a government agency? Yes. No severance agreement can lawfully stop you from filing a charge with, testifying to, or cooperating with the CRD, EEOC, Labor Commissioner, or other agencies.

The agreement has a non-disparagement clause. Is that allowed? Only with limits: it must carve out your right to discuss unlawful workplace conduct. A blanket "never say anything negative" clause without that carve-out is defective under California law.

They're offering two weeks. Is that standard? There is no legal minimum and no true "standard" — severance is a market, not a formula. Offers routinely improve when counsel gets involved, because the employer's calculus changes once it knows the claims have been evaluated.

Can I negotiate without blowing up the offer? Almost always. Employers expect it; the agreement exists because they want the release. A professional counter is normal, not a declaration of war.

Buchsbaum & Haag, LLP reviews and negotiates severance agreements for employees throughout Long Beach, Los Angeles County, and Orange County. Free consultations: 562.733.2498. This article is attorney advertising and general information, not legal advice.