Can I Counter-Offer My Severance Package?

Yes. You can counter-offer your severance package. Most employers expect it. The document you're holding was drafted by attorneys who built in room for negotiation. The initial offer is the floor, not the ceiling. If you're wondering whether pushing back is even an option, the answer is almost always yes.

Why Employers Expect a Counter-Offer

Think about what's happening from the company's perspective. They're asking you to sign a legally binding release that gives up your right to sue them. For anything. That release has real value to them, especially if you have potential claims for discrimination, wrongful termination, retaliation, or wage violations. Their initial offer is what they hope you'll accept. It's rarely what they're willing to pay.

Employers budget for negotiation. Their legal team priced the agreement with a counter-offer in mind. The HR person who handed you the document may not know this. But the lawyers who drafted it do. You are not going to surprise or offend anyone by making a counter-offer. It's standard.

How to Make a Counter-Offer

There are two approaches: doing it yourself or having an attorney do it. Both can work. The difference is in the leverage you bring to the conversation.

On your own. You can call HR, email them, or send a written response outlining what you want changed. Be specific. Don't just say "I want more money." Say "I'm requesting 12 weeks of salary continuation instead of 4 weeks, based on my 8 years of tenure and the scope of the release you're asking me to sign." Specificity matters. Vague asks get vague responses.

With an attorney. An attorney sends a formal counter-proposal letter to the company's legal team. This letter outlines the requested changes and, where applicable, references the legal claims you'd be releasing. This isn't a threat. It's a professional communication that signals you understand your rights and have evaluated the deal. When companies receive a letter from employment counsel, they know the employee is informed. That changes the dynamic immediately.

The attorney approach typically produces better outcomes. Not because attorneys are magic, but because they can identify claims you didn't know you had. Those claims are your leverage.

What's Realistic to Ask For

This depends entirely on your situation. But here's a general sense of what's on the table.

Severance amount. Increases of 50% to 300% above the initial offer are common when the employee has viable legal claims. Even without strong claims, modest increases are typical in negotiated packages. The key factor is the value of the release you're signing.

Payment structure. Lump sum versus salary continuation affects your taxes and unemployment benefits. In California, a lump-sum payment generally gives you faster access to EDD unemployment benefits. You can negotiate which structure works better for your situation.

Health insurance continuation. Beyond COBRA (which you're entitled to regardless), employers often agree to continue paying their portion of the premium for a negotiated period. In Los Angeles, where family COBRA premiums can run $2,000 or more per month, this is worth thousands of dollars.

Reference language. The default in most agreements is that the company will only confirm dates and title. You can push for a written positive reference, specific language your manager will use if contacted, and a commitment not to contest your unemployment claim.

Non-disparagement. If the clause is one-sided (you can't say anything negative but they can), push for mutual non-disparagement. Under SB 331, the clause cannot prevent you from discussing harassment, discrimination, or illegal conduct.

Non-compete removal. Non-competes are void in California under Business and Professions Code Section 16600, but remove them from the agreement anyway. A clean document is better than relying on a legal challenge later.

Will They Revoke the Offer If I Counter?

This is the fear that stops most people. It's almost always unfounded. Revoking a severance offer because you negotiated would leave the employer with no release and a former employee who now has both legal claims and a reason to be angry. That's the worst possible outcome for them.

In practice, employers may push back on specific requests. They may say no to some items. But withdrawing the entire offer is rare. It typically only happens when demands are wildly unreasonable or the negotiation becomes hostile, which is why having a professional handle it matters.

What the Process Looks Like

Step one: review and assess. An attorney reviews the agreement and evaluates your potential claims. Discrimination, retaliation, wage violations, WARN Act issues. This takes a day or two.

Step two: counter-proposal. Your attorney sends a letter to the company outlining the specific changes you're requesting. It's professional, specific, and grounded in the legal reality of your situation.

Step three: back and forth. The company responds, usually through their counsel. There's typically one or two rounds of negotiation. The whole process usually resolves within one to three weeks.

Step four: revised agreement. If negotiation succeeds, the company produces a revised agreement with the new terms. Your attorney reviews the final version to make sure everything agreed upon actually made it into the document.

Your Deadline Is Real But Flexible

Most severance agreements give you a deadline to sign. If you're over 40, federal law (OWBPA) guarantees at least 21 days for individual agreements or 45 days for group layoffs. Employers can always extend the deadline. Asking for more time is a normal part of the process and is almost never refused.

If you're considering a counter-offer on your severance, our employment attorneys in Los Angeles can review your agreement and advise on strategy. We handle severance negotiations on contingency, so if we can't negotiate a better agreement, you don't pay us. Free consultation to start.

What Our Clients Say

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"I worked with Curt Brown on a separation with my former employer. Curt was able to change the terms and the new outcome greatly benefited my family. Very pleased with the ethics and outcome."

Thomas Dillon

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