I Already Signed My Severance Agreement. Can I Still Do Anything?

This is one of the most common calls we get from Los Angeles employees. Someone signed their severance agreement, and now they're wondering if they made a mistake. Maybe they found out they had claims they didn't know about. Maybe a coworker told them they got a better deal. Maybe they just realized they signed away everything for not enough money.

The honest answer: your options are limited. But depending on your circumstances, they may not be zero.

The 7-Day Revocation Window (If You're 40+)

If you're 40 or older, the Older Workers Benefit Protection Act gives you 7 calendar days after signing to change your mind and revoke the agreement. During this window, you can simply notify your employer in writing that you're revoking your acceptance. No reason required.

If you're within this 7-day window right now, act immediately. Send a written revocation (email is fine, but follow up with a letter). The clock starts the day after you sign, and day 7 is the deadline. Don't wait until day 7 to decide.

Once you revoke, the agreement is void. You return the severance payment, and your legal claims are restored. You can then negotiate a new agreement with the benefit of hindsight.

If You're Under 40, or the 7 Days Have Passed

For employees under 40, there is generally no automatic revocation period. And for anyone past the 7-day window, the agreement is typically binding. But there are limited circumstances where a signed agreement can be challenged:

The agreement didn't comply with the OWBPA. If you're over 40 and the employer failed to meet any OWBPA requirement (21-day review period, 7-day revocation notice, written advice to consult an attorney, adequate disclosures for group layoffs), the age discrimination waiver may be unenforceable. This doesn't void the entire agreement, but it means you may still be able to pursue an age discrimination claim.

Duress or coercion. If you were forced to sign under extreme pressure (told you had to sign immediately or lose everything, physically prevented from leaving until you signed, threatened with consequences beyond losing the severance), the agreement may be voidable. The bar for proving duress is high, but not impossible.

Fraud or misrepresentation. If the employer lied about material facts to get you to sign, such as telling you the position was eliminated when they were actually replacing you, or misrepresenting the value of your equity, the agreement could be challenged on fraud grounds.

Unconscionability. An agreement with terms so one-sided that no reasonable person would agree to them can be challenged as unconscionable. A $500 severance with a blanket release of six-figure claims might qualify, but courts set a high bar.

The employer breached the agreement. If your employer isn't holding up their end (they haven't paid the severance, they gave you a bad reference despite agreeing not to, they're violating the non-disparagement by talking negatively about you), their breach may give you grounds to rescind or seek damages.

Rights You Can't Sign Away

Even with a signed release, certain rights remain:

Government agency filings. You can file complaints with the EEOC, CRD, DLSE, OSHA, and SEC regardless of the release. The release may waive your right to monetary recovery from these filings, but the right to file itself is protected.

Workers' compensation. Your right to file a workers' comp claim cannot be waived.

Unemployment benefits. The release cannot prevent you from filing for unemployment.

Future claims. The release covers past events. If the employer does something harmful to you after you sign, those claims are not released.

The Practical Assessment

Let's be realistic. In most cases, a properly signed severance agreement is binding. The scenarios above are exceptions, not the rule. If you signed a straightforward agreement, were given adequate time, weren't pressured or misled, and the employer has upheld their end, the agreement will likely hold.

That doesn't mean calling an attorney is pointless. Even if the release is binding, an LA employment attorney can identify whether any of the exceptions apply, advise you on your remaining rights (government filings, workers' comp, unemployment), and help you if the employer breaches the agreement going forward.

The Lesson Going Forward

The best time to evaluate a severance agreement is before you sign it. But if you've already signed, don't assume it's hopeless. Contact our employment team for a free assessment of your situation. We represent employees throughout Los Angeles and Southern California. We'll tell you honestly whether you have any options and what they look like.