10/14/2026
If you have been offered a severance package, the worst thing you can do is sign it the same day.
Most severance agreements contain broad releases of claims. By signing, you may be giving up the right to sue for wrongful termination, unpaid wages, discrimination, or harassment. Often without realizing it.
California law gives you time to review. For employees over 40, federal law requires at least 21 days to consider the agreement and 7 days to revoke it after signing.
What to look at before you sign: what claims are you releasing, is the amount fair given your tenure and circumstances, are there disparagement or competition restrictions, and does it cover equity and unvested shares.
A one-hour conversation with an attorney before you sign can tell you whether what you are being offered is reasonable or whether there is room to negotiate.
Once you sign, the leverage is gone.
Ari Law handles employment and business matters throughout California.
arilaw.com · (415) 830-9968