Can You Negotiate Your Severance Package in California?

When you lose your job in California, negotiating a strong severance package can make a major difference in your financial security and future opportunities.

Employers often expect some negotiation, and you have the right to ask for better terms before signing anything. Keep reading to learn more from our severance agreement attorneys.

Review Your Starting Offer

Before negotiating, carefully review the initial severance offer. Look beyond the lump-sum payment. Examine the details about health benefits, retirement plans, unused vacation payouts, confidentiality clauses, and any non-compete or non-disparagement agreements.

Also, consider whether you have potential legal claims against your employer. If you suspect discrimination, retaliation, harassment, or wrongful termination, you may have strong leverage to negotiate a larger settlement.

In California, final wages, including unused vacation time, must be paid regardless of a severance agreement. Make sure your severance offer does not substitute legally required payments with extra conditions.

Set Clear Goals

Effective negotiation starts with knowing what you want. Decide which terms matter most to you. Common negotiation points include:

• More Severance Pay: A higher lump-sum amount or additional weeks of salary based on your years of service.
• Extended Health Benefits: Request that the employer cover your COBRA premiums for a longer period.
• Neutral Reference Language: Ensure the company will provide a neutral job reference, especially if the separation involved conflict.
• Waiver Modifications: Limit overly broad release clauses that could waive important rights.
• Outplacement Services: Career counseling, resume support, or job placement assistance.
• Non-Disparagement and Confidentiality Terms: Narrow these clauses to avoid restrictions that could unfairly harm your future employment prospects.

Approach Negotiation Strategically

Stay professional and polite throughout the negotiation process. Approach it as a business discussion, not an emotional confrontation. Express appreciation for your time with the company, but firmly explain why you believe better terms are appropriate.

Use facts to support your requests. For example, mention your contributions, performance achievements, or industry standards for severance in similar situations. Highlight any potential claims you could bring if appropriate, but do so carefully, without threats. Once you sign, it becomes difficult or impossible to renegotiate.

Hire a Lawyer 

Hiring an employment lawyer can make a major difference. They can spot unfair clauses, suggest stronger terms, and negotiate directly with your employer if needed. They can also evaluate any legal claims you might use to secure a better deal.

Many Orange County employment lawyers offer flat-fee reviews or work on contingency if your case involves rights violations. Using a lawyer shows the employer that you intend to protect your rights, often resulting in higher payments, better benefits, and stronger legal protections.

How Much is a Typical Severance Agreement?

There is no legal standard in California, so severance amounts often depend on negotiation and the specific situation surrounding your departure. The amount of a typical severance agreement varies based on factors like your position, length of service, and company policies.

Many employers offer one to two weeks of pay for each year of service, but some may offer more, especially for executives or long-term employees. 

Does Every Employee Receive Severance? 

Not every employee receives severance. In California, employers are not legally required to provide severance pay unless they have a written contract, company policy, or union agreement that promises it.

Many employers offer severance voluntarily to protect their reputation, secure a release of legal claims, or ease the transition for departing employees. 

If you think you have an employment case, contact our firm today.