Severance Negotiation · Saratoga, California

Severance Negotiation Attorneys in Saratoga, CA

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What Is Severance Negotiation?

Understanding Severance Agreements in California

A severance agreement offers payment or benefits in exchange for releasing legal claims against your employer.

Employers offer severance primarily to obtain that release, not out of obligation, since California generally does not require severance pay.

Signing a severance agreement without review can be costly, because it asks you to give up your legal rights.

Employees frequently waive claims they do not realize they have, including discrimination, wrongful termination, unpaid wages and overtime, or retaliation, often for far less than those claims may be worth. The severance amount offered is rarely fixed; it is frequently a starting point for negotiation, especially when the circumstances of your departure suggest potential legal exposure for the employer.

California law imposes specific requirements on severance agreements.

These requirements include:

  • A valid release of unknown claims must satisfy Civil Code Section 1542.
  • Employees 40 or older are entitled to additional protections under the federal Older Workers Benefit Protection Act (OWBPA), including 21 days to consider the agreement and 7 days to revoke after signing.
  • California's Silenced No More Act (SB 331) restricts employers from using non-disparagement or confidentiality clauses to silence employees about unlawful acts in the workplace.

If you have been offered a severance agreement, McLellan Law Group can review its terms, assess your leverage, and negotiate on your behalf before you sign anything.

How We Help

What Our Severance Negotiation Attorneys Do

Review your severance agreement line by line to identify exactly what rights and claims you would be waiving.
Evaluate whether you have unasserted claims, discrimination, wrongful termination, unpaid wages, that increase your negotiating leverage.
Negotiate for a larger severance payment, extended benefits, outplacement support, or a neutral employment reference.
Ensure the agreement complies with California requirements, including Civil Code § 1542 and, for employees 40 and older, the OWBPA.
Flag unlawful non-disparagement or confidentiality provisions restricted under California's Silenced No More Act.
Advise you on realistic deadlines, signing too quickly can waive valuable rights, while unnecessary delay can risk losing the offer.

Severance Negotiation FAQs

No. Signing a severance agreement is always voluntary. If you decline to sign, you generally keep any legal claims you may have against your employer, but you also give up the severance payment or benefits offered in exchange for a release. Whether signing makes sense depends on the value of the severance offered compared to the strength of any claims you might be giving up, an evaluation an employment attorney can help you make before any deadline to sign expires.

If you are 40 or older, federal law (the Older Workers Benefit Protection Act) requires your employer to give you at least 21 days to consider an individual severance agreement, plus 7 days to revoke your signature after signing. For employees under 40, there is no fixed statutory review period, but a reasonable amount of time is expected, and an unreasonably short deadline can itself be a red flag. Regardless of your age, you should have an attorney review the agreement before the deadline to sign.

Yes. Severance offers are frequently negotiable, particularly when the circumstances of your departure suggest the employer may have legal exposure, for example, if your termination followed a discrimination complaint, a leave request, or a wage dispute. An attorney can identify leverage points in your situation and negotiate for a larger payment, extended health coverage, accelerated vesting, outplacement services, or a mutually agreed-upon reference, rather than accepting the employer's first offer.

California Civil Code Section 1542 protects individuals from unknowingly releasing claims they don't know about at the time they sign a release. For a severance agreement to waive claims you are not yet aware of, it must include specific language expressly waiving your Section 1542 protections. If a severance agreement does not include a proper 1542 waiver, or the waiver was not knowing and voluntary, you may later be able to challenge the scope of what you released.

Not entirely. California's Silenced No More Act (SB 331), effective 2022, prohibits employers from using non-disparagement or confidentiality provisions in severance agreements to prevent employees from disclosing information about unlawful workplace acts, including discrimination, harassment, and retaliation. Employers can still protect legitimate trade secrets and the confidential terms of the settlement amount itself, but broad clauses attempting to silence you about illegal conduct may be unenforceable under California law.

If you decline to sign, you typically do not receive the severance payment or benefits offered, but you retain any legal claims you may have against your employer, such as wrongful termination, discrimination, or unpaid wage claims, and remain free to pursue them. In some cases, the value of those retained claims can exceed what was offered in severance. An attorney can help you weigh the certainty of a severance payment against the potential value, timeline, and risk of pursuing a claim instead.

Why McLellan Law Group

Results-Driven. Personally Invested.

01
Boutique Firm Attention You work directly with an attorney, not a paralegal or case manager. We keep our caseload intentionally small so every client gets full attention.
02
Silicon Valley Focus Based in Saratoga, we know California employment law and the local court landscape inside out, from Santa Clara County to the broader Bay Area.
03
Proven Track Record Our attorneys have represented employees and employers across Silicon Valley in wrongful termination, discrimination, harassment, wage and hour, and PAGA matters, in negotiation, arbitration, and California state and federal court.
04
Free Consultation We offer a complimentary initial consultation so you can understand your rights and options before making any commitment.
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