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Reviewing a Severance Agreement

You have been handed a severance agreement after being laid off or fired, and you are being asked to sign it quickly. It probably feels unfair, and you may suspect your employer is trying to limit its liability or silence you. You are not sure what you are giving up, whether you have any legal options, or if signing is a mistake. There is a real, ordered set of options to consider before you decide.

The honest reality

Not every unfair or painful termination gives you a legal claim. The key difference between a bad experience and a potential legal claim is whether your employer violated a specific law, such as discriminating against you because of your race, age, or disability, retaliating against you for reporting illegal activity, or breaking a promise in a contract. If your employer simply made a business decision you disagree with or treated you poorly without breaking a law, signing the agreement may be your only practical path to receive money or benefits.

Your real options, cheapest first

1. Free: complain to the EEOC. If your severance agreement waives age-discrimination claims, federal rules require specific disclosures and a real review period before that waiver is valid; this is where you'd raise a problem with that waiver. Start here.
2. A written request or demand first. Ask your employer in writing for extra time to review, and for a plain explanation of every claim the agreement asks you to give up; a legitimate offer survives you taking a few days to actually read it.
3. Small claims court, where the amount is calculable. There's usually nothing to file in small claims court here, this is a contract-review question, not a claim to recover money you're already owed outside the agreement.
4. A lawsuit or full agency case. A lawyer reviewing a severance agreement, even a single consultation, is one of the more affordable uses of legal help because the document is short and the question is narrow: many will review one for a flat fee.

A warning on deadlines: every agency in the options above runs on its own filing deadline, and those deadlines are short and vary by agency, by claim, and by state. Do not estimate one from anything you read here, go to the agency's own page linked above and check its current deadline immediately, before you do anything else.

You don't need a lawyer to start

You are allowed to do this yourself

A regulator complaint, and for pay disputes small claims court, are both built for people without lawyers. Read our pro se guide for how self-representation actually works, our what happened at work triage tool if you are not even sure what category this falls into, and if a lawyer's cost is the blocker at any stage, our can't-afford-a-lawyer triage covers every free and low-cost path, including legal aid.

Questions

What am I giving up if I sign this severance agreement?

By signing, you typically give up your right to sue the employer for any legal claims related to your employment or termination, including claims for discrimination, harassment, unpaid wages, or breach of contract. You may also agree to keep confidential information private, not to disparage the company, and to return company property. The agreement will list exactly what rights you are waiving, so read it carefully.

Do I have to sign the severance agreement right away?

No, you do not have to sign immediately. Federal law gives you a minimum amount of time to consider the agreement if you are being asked to waive age discrimination claims, and many states give you additional time. You can ask for more time to review it or to consult a lawyer, and the employer may or may not agree to extend the deadline.

Can I negotiate the terms of the severance agreement?

Yes, you can negotiate. Many employers expect some back and forth, especially on the amount of severance pay, the length of time you have to sign, or the scope of the non disparagement clause. You are not required to accept the first offer, and asking for changes does not automatically cancel the offer.

Not legal advice and not a law firm. We don't predict outcomes, and deadlines and dollar thresholds vary by state and by claim, check your state's page before you rely on any number. If you can get a lawyer or free legal aid, do: start at lsc.gov.