Can I Negotiate My Severance Package in Los Angeles?

Yes. Almost always yes. The severance package your employer handed you is a starting offer, not a final answer. Most employees don't realize this because no one tells them. Your employer certainly won't.

Why Severance Offers Are Negotiable

Think about what's happening from your employer's perspective. They're asking you to sign a legally binding document that gives up your right to sue them. That release has value. If you have potential claims for discrimination, wrongful termination, retaliation, or wage violations, the release could be worth a lot of value. The initial severance offer is what they hope you'll accept, not what they're willing to pay.

Employers budget for negotiation. Their legal team drafts the agreement knowing there will likely be a counter-offer. The HR person handing you the document may not know this. But the lawyers who wrote it do.

What You Can Negotiate

The severance amount. This is the obvious one. Whether it's structured as weeks of pay, months of salary, or a lump sum, the number is negotiable. Common outcomes include doubling or tripling the initial offer, especially when the employee has viable legal claims.

Payment structure. Lump sum versus salary continuation matters for taxes and unemployment. You can negotiate which structure works better for your situation.

Health insurance. Beyond COBRA (which you're entitled to regardless), many employers will continue paying their portion of your health insurance premiums for a negotiated period. Given how expensive COBRA premiums are in Los Angeles, this can be worth thousands of dollars.

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

Non-disparagement scope. Standard agreements prevent you from saying anything negative about the company. You can push for mutual non-disparagement (they can't talk badly about you either), or narrow the clause to exclude truthful statements made to government agencies, future employers, or in legal proceedings.

Confidentiality terms. You can negotiate what's confidential and what isn't. For example, you might want the ability to tell future employers that you left with a severance package, without disclosing the specific amount.

Non-compete removal. Non-competes are generally unenforceable in California under Business and Professions Code Section 16600, but having one in your agreement can still create problems. Negotiate to remove it entirely.

Equity and stock options. If you have unvested stock options, RSUs, or other equity, you can negotiate for accelerated vesting, an extended exercise window, or cash-out of the equity value.

What Gives You Leverage

Your negotiating power depends on what you're giving up by signing. The stronger your potential legal claims, the more leverage you have.

Discrimination claims. If there's evidence your termination was motivated by age, race, gender, disability, or another protected characteristic under FEHA, that claim has significant value. Los Angeles County juries have awarded substantial damages in employment discrimination cases.

Retaliation. If you were fired after reporting illegal activity, filing a workers' comp claim, or taking protected leave (FMLA/CFRA), a retaliation claim strengthens your position considerably.

Wage violations. Unpaid overtime, missed meal and rest breaks, unreimbursed expenses, or misclassification as exempt. These claims exist independently of the severance agreement, and your employer knows it.

Tenure and seniority. Long-term employees generally have more leverage because they've contributed more and their termination is harder for the company to justify.

How the Negotiation Process Works

You don't negotiate a severance package by calling HR and asking for more money (though sometimes that works for small improvements). Effective negotiation typically follows this pattern:

Review and assessment. An attorney reviews your agreement and evaluates your potential claims. This usually takes one to two days.

Counter-proposal. Your attorney sends a letter to the company outlining the specific changes you're requesting and, when appropriate, the legal basis for your leverage. This isn't a threat. It's a professional communication that signals you understand your rights.

Back and forth. The company responds, usually through their legal counsel. There may be one or two rounds of negotiation. Most severance negotiations resolve within one to three weeks.

Revised agreement. If negotiation is successful, the company produces a revised agreement with the new terms. Your attorney reviews the final version to make sure everything agreed upon is actually in the document.

Will They Revoke the Offer If I Negotiate?

This is the fear that stops most people. And it's almost always unfounded. Employers make severance offers because they want the release. Revoking the offer because you negotiated would leave them with no release and a potentially angry former employee with intact legal claims. That's the opposite of what they want.

In practice, employers expect negotiation. They may push back on specific requests, but withdrawing the offer entirely is rare and usually only happens when the employee (or their attorney) makes unreasonable demands.

Get a Professional Assessment

The hardest part of negotiating your severance is knowing what you're working with. Do you have claims? How strong are they? What's realistic to ask for? An employment attorney can answer these questions in a single consultation.

If you're in the Los Angeles area, our employment team reviews severance agreements and advises on negotiation strategy. Free initial consultation, no obligation to hire us. Even if you decide to negotiate on your own, knowing your leverage changes the conversation.