California Severance Agreement Myths: The Truth About “Standard” or “Non-Negotiable” Offers
Many California employees are told their severance package is “standard” or “final.” In reality, there’s no law defining a “standard” severance. Every deal is negotiable — and every signature gives you leverage.
Myth #1 – “This Severance Is Standard and Everyone Gets the Same Thing.”
Behind the myth: Companies call their offers “standard” to make employees think negotiation isn’t an option. But California has no statute requiring a uniform severance.
The reality: Because severance is voluntary, it’s also negotiable. When your employer asks you to sign away your legal claims, that request creates leverage.
Legal Note: “If a severance were truly ‘standard,’ you wouldn’t have to sign anything. Once they ask for your signature, it becomes a negotiation.”
Myth #2 – “You Must Sign Within 24 or 48 Hours.”
Behind the myth: Tight deadlines are a pressure tactic. Employers know that urgency limits your ability to review and consult an attorney.
The reality: California law doesn’t require you to sign immediately. If you’re age 40 or older and your severance includes a release of age-discrimination claims, you’re legally entitled to 21 days to review it under federal law. Still, the smart move is to act early — not to rush, but to leave room for an informed response.
Legal Note: “Rushed decisions favor employers. Confidence and early action build leverage.”
Myth #3 – “The Severance Amount Is Final.”
Behind the myth: Most first offers aren’t final — they’re starting points. Companies expect negotiation, even if they claim otherwise.
The reality: California employees can negotiate both compensation and terms. That may include:
- A higher payout or longer salary continuation
- Extended COBRA or health coverage
- Neutral or positive references
- Narrower confidentiality or non-disparagement clauses
Legal Note: “Every dollar offered represents what your employer thinks your silence is worth. Don’t sell that short.”
Myth #4 – “You Can’t Change the Legal Language.”
Behind the myth: Employers insist their clauses are “company policy.” They’re not. These provisions are drafted by corporate counsel to protect the company, not you.
The reality: Employees can request edits to overly broad or restrictive clauses. Narrowing releases, adjusting non-compete or non-solicitation terms, and clarifying confidentiality language are common negotiation points in California.
Legal Note: “Template language is just that — a template, not a rulebook.”
Myth #5 – “If You Refuse to Sign, You Get Nothing.”
Behind the myth: Fear is a negotiation tactic. Severance isn’t a reward; it’s payment to reduce the company’s legal risk.
The reality: Refusing to sign keeps your legal claims alive — often the very thing employers fear most. If you’ve experienced retaliation, discrimination, harassment, or wrongful termination, not signing may strengthen your position for negotiation or litigation.
Legal Note: “Walking away doesn’t end your options. It preserves them.”
What to Do When You’re Told a Severance Is “Non-Negotiable”
- Pause before signing. Don’t let urgency dictate your choice.
- Evaluate potential claims. Retaliation, discrimination, or wage issues may give you leverage.
- Request review time. Reasonable extensions are common.
- Consult an employment attorney. A brief review can reveal hidden risks and negotiation opportunities.
- Decide strategically. With guidance, you can often turn a “take-it-or-leave-it” offer into a better deal.
FAQs About Severance Negotiation in California
Is a “non-negotiable” severance really final?
No. Severance is a voluntary exchange for a legal release, which makes it negotiable under California law.
Can I negotiate if my employer says the offer is final?
Yes. “Final” usually just means “first.” Skilled negotiation can improve the amount and the terms.
What happens if I refuse to sign?
You keep your potential claims alive — which can be more valuable than the severance itself.
What can I negotiate besides money?
Payment timing, COBRA coverage, confidentiality terms, job references, and non-disparagement clauses are all negotiable.
Why would an employer call a severance non-negotiable?
To discourage pushback. It’s a tactic, not a rule, designed to reduce their risk and control the timeline.
Take Control Before You Sign Anything
Every severance agreement is a contract, not a formality. Before signing, make sure you understand what you’re giving up and what you can gain.
Contact Mills Sadat Dowlat LLP (MSD Lawyers) for a confidential review.
A quick consultation can determine whether your “non-negotiable” severance is truly final — or whether you have room to demand more.
📞 Call (916) 758-8058 or visit msdlawyers.com to schedule a review.
