If you’ve been presented with a severance agreement by your employer in California, it’s important to understand what you’re signing before you accept. Severance agreements are legally binding contracts, and once you sign, you may be giving up important rights. At the Law Office of Ball & Yorke, we help individuals in Ventura make informed decisions before entering into these agreements.

What Is a Severance Agreement?

A severance agreement is a contract between an employer and an employee that outlines the terms of the employee’s departure. It often includes compensation in exchange for the employee waiving certain rights, such as the right to sue the employer.

In California, employers are not required to offer severance, but when they do, it’s typically used to limit legal liability and avoid future claims.

Key Terms to Review Carefully

Before signing, make sure to review and understand these common provisions:

• Waiver of Claims: Most severance agreements require the employee to release the employer from legal claims, including those related to wrongful termination, discrimination, and wage violations.
• Confidentiality Clauses: These clauses may prevent you from discussing the terms of your agreement or details about your employment.
• Non-Disparagement Clauses: You may be asked not to make negative statements about the employer.
• Non-Compete and Non-Solicitation Terms: While generally unenforceable in California, some agreements still include language that restricts future employment.
• Severance Pay and Benefits: Understand how much you are receiving and how it affects unemployment benefits or any ongoing health insurance.

Know Your Rights

Under California law, you cannot be forced to sign a severance agreement on the spot. You have the right to review the agreement and consult with an attorney. In some cases, such as those involving employees over age 40, federal law requires the employer to give you at least 21 days to consider the offer.

Additionally, an employer cannot retaliate against you for declining to sign the agreement.

Why Legal Review Matters

Even if the severance package seems generous, you could be waiving significant legal claims or rights without fully realizing it. An employment attorney can identify overly broad language, unfair terms, or provisions that violate California labor laws. In many cases, the terms of the agreement can be negotiated.

Protect Your Future

At the Law Office of Ball & Yorke, we assist employees in Ventura with reviewing severance agreements and understanding the long-term impact of signing. We can help ensure your rights are protected and that the agreement aligns with your best interests.