The most useful severance negotiation tips are simple: don't sign on the spot, read exactly which claims you're releasing, ask for two or three specific things in writing with a reason for each, use the full review period, and get a lawyer's opinion when the stakes are high. In the US, no federal law requires severance pay, so the agreement is a trade: the company pays you, and you usually give up the right to sue. That trade is what gives you room to ask. Many requests will get a polite no, especially in large group layoffs, and asking calmly rarely costs you anything.
This is general information, checked on official US government sources as of October 2026. It is not legal or tax advice. Employment law varies by state and by the size of your employer, so for anything significant, talk to an employment lawyer. If you're still in the first few days, start with our first week after a layoff checklist.
Is severance negotiable?
Sometimes. The Department of Labor says plainly that the Fair Labor Standards Act doesn't require severance pay; it is "a matter of agreement" between employer and employee. That means two things. First, the company doesn't have to offer anything. Second, once it does, the terms are a contract, and contracts can change before they're signed.
How much room you have depends on the situation:
- Large group layoffs usually use a fixed formula (for example, a set number of weeks per year of service). The base amount rarely moves, but individual details sometimes do, such as your separation date, how equity is treated or the wording of your reference.
- Individual exits (your role alone was cut, or it's a small company) tend to be more flexible.
- Specific circumstances strengthen a request: an equity vest a few weeks away, a recent relocation the company asked for, a sign-on bonus they want back, a visa timeline, or a concern about how you were selected.
What am I signing in a severance agreement?
Most severance agreements are mainly a release of claims, with payment attached. Read each clause and ask what it means for you. These are the clauses that appear most often:
| Clause | What it usually does | What to check or ask |
|---|---|---|
| General release | You give up most legal claims against the company up to the signing date | Which claims are excluded, and the fact that a waiver can't cover claims that arise after you sign |
| Payment terms | Lump sum or salary continuation, sometimes paid only after any revocation period ends | The exact dates, and whether pay stops if you start a new job |
| Confidentiality | Keeps the agreement's terms private | Whether you can still tell a spouse, lawyer or tax adviser |
| Non-disparagement | You agree not to criticize the company | Whether it's mutual, and whether it covers managers' statements about you |
| Noncompete or non-solicit | Limits where you can work or whom you can contact | Its length and scope, and whether it's enforceable in your state |
| Cooperation | You agree to help with later questions or litigation | Whether your time will be paid |
| Repayment or clawback | You return a sign-on or relocation bonus | Whether it can be waived as part of the deal |
| Return of property | You return laptops, badges and files | Whether you can keep your phone number or personal device |
On noncompetes: they're mostly governed by state law, which differs a lot. The FTC's 2024 nationwide noncompete rule never took effect. A federal court blocked it in August 2024, and the FTC moved to accept that ruling in September 2025. If your agreement has a noncompete, ask a lawyer how your state treats it.
If you're 40 or older: the 21-day, 45-day and 7-day rules
If you're 40 or older and the agreement waives claims under the Age Discrimination in Employment Act (ADEA), the Older Workers Benefit Protection Act sets minimum standards. The ADEA covers private employers with 20 or more employees. According to the EEOC guidance on severance waivers, a valid waiver of age claims must:
- be written so you can understand it, and specifically refer to the ADEA;
- advise you in writing to consult a lawyer before signing;
- give you at least 21 days to consider it, or at least 45 days if it's part of a group layoff or exit program;
- give you 7 days after signing to revoke it, a period that can't be shortened;
- not waive claims that arise after you sign;
- give you something of value beyond what you're already owed.
In a group layoff, the employer must also give you written information about the group of employees considered, the eligibility factors, and the job titles and ages of the people who were and weren't selected. That list can help a lawyer judge whether the selection looks fair. You can sign before the 21 or 45 days are up if it's your own knowing and voluntary choice, but you don't have to.
Two more points from the EEOC. A waiver can't stop you from filing a charge with the EEOC or taking part in an EEOC investigation. And charges generally must be filed within 180 calendar days of the event, extended to 300 days in some cases (for age claims, only where a state law prohibits age discrimination). Some states add their own rules on top of these.
What severance terms can you ask for?
Pick the two or three that matter most to you, not all of them. A short list with reasons reads as reasonable; a long list reads as a fishing trip. The example wording is ours, written for illustration:
| Ask | When it's most reasonable | Example wording we wrote |
|---|---|---|
| More weeks of pay | Long tenure, a senior role, or an individual exit | "Given my six years here, would the company consider 12 weeks instead of 8?" |
| Health premium help | Family coverage, or a known medical need | "Could the company cover COBRA premiums for the severance period?" |
| Later separation date | An equity vest, bonus date or benefit milestone is close | "My next RSU vest is on the 15th. Could my separation date move to the 16th?" |
| Longer option exercise window | Vested options you can't afford to exercise quickly | "Could the post-termination exercise period be extended to 12 months?" |
| Pro-rated bonus | You worked most of the bonus period | "I was nine months into the bonus year. Could a pro-rated bonus be included?" |
| Waived clawback | A recent sign-on or relocation bonus | "Since the role was eliminated, could the sign-on repayment be waived?" |
| Agreed reference and reason | Always worth asking | "Could we agree that references will confirm my role was eliminated in a reduction in force?" |
| Mutual non-disparagement | The draft only binds you | "Could the non-disparagement clause apply to the company's managers too?" |
If you're on a work visa, talk to an immigration attorney before agreeing to a separation date, because the date can affect your grace period. Our guide for people laid off on an H-1B explains why.
How do I negotiate severance without burning a bridge?
Keep it short, polite and in writing. You'll want references from these people, and a calm request preserves that. A simple process:
- Acknowledge and ask for time. Thank HR, confirm the review deadline and say you'll come back with any questions.
- Get your questions answered first. Sometimes the answer (for example, that unvested stock fully forfeits) tells you what to ask for.
- Send one email with two or three asks, each with a one-line reason.
- Accept a partial yes gracefully. Getting one item is a good outcome.
- Get every change in the final written agreement before you sign. Verbal promises don't count.
Here's an example email we wrote:
"Hi Dana, thank you for walking me through the separation package on Monday. I've reviewed it and have two requests. First, my next RSU vest is on November 15; would the company consider a separation date of November 16 so it vests? Second, could the agreement state that references will confirm my role was eliminated in a reduction in force? I'm happy to discuss, and I'd like to wrap this up well within the review period. Thanks, Sam."
Avoid threats, deadlines you set yourself, and complaints about how the layoff was handled. If you believe something unlawful happened, that's a conversation for a lawyer, not an HR email.
When should you get a lawyer?
You don't need a lawyer for every severance agreement, but a short review is worth paying for when:
- you're 40 or older and it's a group layoff, especially if the selection data looks uneven;
- you think the layoff may be connected to discrimination, a complaint you made, a medical or family leave, or a pregnancy;
- a lot of money is involved, such as large unvested equity or a big bonus;
- there's a noncompete that could block your next job;
- your immigration status depends on your employment.
Look for an employment lawyer who represents employees. Your state or local bar association usually runs a lawyer referral service. Ask about fees up front; some lawyers offer a flat fee for reviewing an agreement.
Once the agreement is settled, put your energy into the search. Our hub on what to do after a tech layoff lays out the next steps, and when offers start arriving, our guide to salary negotiation after a layoff covers negotiating without feeling you've lost your leverage.
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Is severance pay required by law in the US?
No federal law requires it. The Department of Labor says severance is a matter of agreement between employer and employee, often based on length of service. Some employers have written severance plans or policies, and some states have specific rules, so check your plan documents.
Can you negotiate a severance package in a mass layoff?
You can ask, but expect less flexibility. Group layoffs usually use a fixed formula, so the base amount rarely changes. Details such as the separation date, equity treatment, a pro-rated bonus or the wording of your reference are sometimes easier to adjust.
How long do I have to sign a severance agreement?
Whatever the agreement states. If you're 40 or older and it waives age-discrimination claims, federal law requires at least 21 days to consider it, or 45 days in a group layoff, plus 7 days to revoke after signing. Some states have additional rules.
Can I still file a discrimination charge after signing a release?
According to the EEOC, a severance waiver can't stop you from filing a charge with the EEOC or taking part in an EEOC investigation. Whether you could recover money is a separate question for a lawyer. Charge deadlines are generally 180 days, extended to 300 days in some cases.
What is the most common thing people ask for in severance?
Common requests include more weeks of pay, help with COBRA premiums, a separation date after an upcoming equity vest, a longer window to exercise stock options, a pro-rated bonus, and an agreed reference. Pick the two or three that matter most and give a reason for each.
Do I need a lawyer to review my severance agreement?
Not always, but it's worth it if you're 40 or older in a group layoff, suspect discrimination or retaliation, have significant equity at stake, face a noncompete, or hold a work visa. Your state or local bar association can usually refer you to an employment lawyer.