My Employer Broke the Severance Agreement. What Can I Do?

You signed the agreement. You held up your end. But your employer didn't. Maybe they haven't paid the severance. Maybe they gave you a bad reference despite promising not to. Maybe they're violating the non-disparagement clause by telling people you were fired for cause. Whatever it is, when your employer breaches the severance agreement, you have options.

Common Types of Employer Breach

Non-payment or late payment. The most straightforward breach. The agreement says they'll pay you $X on a specific date, and they haven't. This is a clear breach of contract.

Negative references. If the agreement includes a neutral or positive reference provision and your employer is giving negative references, that's a breach. The challenge is proving it. Future employers rarely tell you what a reference said. If you suspect this is happening, a reference check service or a direct inquiry from your attorney can confirm it.

Violation of non-disparagement. If the agreement includes mutual non-disparagement and your former employer's managers or executives are bad-mouthing you to industry contacts, clients, or other employers, that's a breach.

Failure to provide agreed-upon benefits. If the company agreed to pay COBRA premiums for six months and stopped after three, or promised outplacement services and never provided them, those are breaches.

Contesting unemployment. If the agreement includes a provision that the employer won't contest your unemployment claim and they contest it anyway, that's a breach.

Disclosing confidential terms. If the agreement includes mutual confidentiality and the employer is telling people the details of your severance, that's a breach on their side.

What Remedies Are Available

Breach of contract lawsuit. You can sue for breach of the severance agreement in Los Angeles County Superior Court. Remedies can include the unpaid amounts, consequential damages (harm caused by the breach), and in some cases, attorney's fees if the agreement includes a fee-shifting provision.

Rescission. In some cases, a material breach by the employer may give you the right to rescind (undo) the agreement entirely. This is significant because rescission would restore your original legal claims that you released when you signed. If you had a strong discrimination or wrongful termination claim, getting the agreement rescinded means you can pursue that claim again.

Specific performance. A court can order the employer to do what they promised: pay the money, provide the reference, stop the disparagement. This is particularly useful for non-monetary obligations that damages alone can't fix.

Arbitration. If the agreement includes a mandatory arbitration clause, you may need to pursue your claims through arbitration rather than court. Check the dispute resolution provision in your agreement.

Does the Breach Revive Your Original Claims?

This is the question everyone asks. The answer depends on the nature of the breach.

If the breach is "material" (significant enough to undermine the entire purpose of the agreement), it may give you the right to rescind the agreement and restore your original claims. For example, if the employer never paid the severance at all, that's a material breach that goes to the heart of the deal.

If the breach is "minor" (a technical violation that doesn't undermine the overall deal), your remedy is typically damages for the specific violation, not rescission of the entire agreement. For example, a single instance of a manager making a negative comment might be a breach of non-disparagement but probably isn't material enough to rescind the entire agreement.

How to Prove the Breach

Document everything. Save emails, texts, letters, and any evidence of the breach. If the employer missed a payment, keep records of when it was due and when (or whether) it arrived.

Reference checks. If you suspect negative references, you can hire a reference-checking service that contacts your former employer posing as a prospective employer and documents what they say.

Witness statements. If colleagues, industry contacts, or others heard disparaging statements from your former employer, their accounts can support your claim.

What to Do Right Now

Review the agreement. Re-read the specific provision you believe was violated. Make sure the employer's conduct actually constitutes a breach under the language of the agreement.

Send a written notice. Before filing a lawsuit, send a formal written notice to your employer identifying the breach and demanding that they cure it. This creates a record and may resolve the issue without litigation.

Consult an attorney. A Los Angeles employment attorney can evaluate whether the breach is material (potentially reviving your original claims) or minor (warranting specific relief), and advise on the best course of action.

If your employer isn't honoring the deal they signed, contact our employment team. Free consultation for employees throughout Los Angeles. We'll review the agreement, evaluate the breach, and help you enforce the terms you bargained for.