I Just Got Fired and They Want Me to Sign a Severance Agreement

Take a breath. You're probably reading this from your car in the parking lot or at your kitchen table staring at a stack of papers you didn't expect to get today. That's okay. You don't have to do anything right now. And you absolutely should not sign anything today.

That document your employer just handed you? It was written by their lawyers, for their benefit. Every clause in it is designed to protect the company, not you. That doesn't mean it's a bad deal. It means you need to understand what you're agreeing to before you put your name on it.

What's Actually in That Document

Most severance agreements in California contain the same core provisions, even if the language varies. Here's what you're probably looking at:

A general release of claims. This is the big one. You're agreeing to give up your right to sue your employer for anything. Wrongful termination, discrimination, harassment, unpaid wages, retaliation. All of it. Once you sign, those claims are gone.

A confidentiality clause. You typically can't tell anyone the terms of the agreement, including how much you're getting. Some agreements go further and try to prevent you from talking about your employment at all.

A non-disparagement clause. You agree not to say anything negative about the company. In California, there are limits to how broad this can be, especially after recent legislative changes. But the clause will be in there.

A non-compete clause. If your agreement has one of these, here's the good news: non-compete clauses are almost always unenforceable in California under Business and Professions Code Section 16600. Your employer's lawyers may have put it in there anyway, hoping you don't know that.

The severance payment. This is what they're offering you in exchange for signing away your rights. It might be a lump sum or continued salary for a period. It might include benefits continuation. Read the exact terms carefully.

What California Law Says About Your Situation

California is an at-will employment state, which means your employer can generally terminate you without cause. But "at-will" doesn't mean "without any rules." There are important protections you should know about.

Your employer must pay you all earned wages, including accrued vacation time, on your last day of work. That's California Labor Code Sections 201 through 203. This money is yours regardless of whether you sign the severance agreement. If they're holding your final paycheck hostage until you sign, that's a violation of California law.

If you're 40 or older, federal law gives you at least 21 days to review the agreement under the Older Workers Benefit Protection Act. After you sign, you get another 7 days to change your mind. Your employer cannot pressure you to sign faster. If they're trying to, that's a red flag.

If you were terminated as part of a group layoff and you're over 40, you get 45 days to review, not 21. Your employer also has to give you information about who else was laid off and who wasn't, broken down by age. This is so you can evaluate whether age played a role in the decision.

What to Do Right Now

Don't sign today. There is no legitimate reason your employer needs your signature immediately. If they're pushing you to sign before you leave the building, that's pressure, and it should make you more cautious, not less.

Take the document home. Read it carefully. Highlight anything you don't understand. Note the deadline they've given you. If there's no deadline stated, you generally have a reasonable amount of time.

Check your final paycheck. Make sure it includes all earned wages and accrued vacation. If it doesn't, you have a wage claim regardless of the severance agreement.

Don't post about it on social media. It's tempting to vent. Don't. Anything you post publicly could be used against you later, whether in negotiations or in court.

File for unemployment. Being fired does not disqualify you from unemployment benefits in California in most cases. File with the EDD as soon as possible. Signing a severance agreement generally does not affect your eligibility, and your employer cannot legally make you waive your right to unemployment.

What a Lawyer Can Actually Do for You

This isn't about paying someone to tell you what you already know. A Los Angeles employment attorney who handles severance agreements can do specific, concrete things that change the outcome.

First, they can evaluate whether you have claims worth more than the severance offer. If you were fired because of your age, race, gender, disability, or because you reported something illegal, your potential legal claims could be worth significantly more than what's on the table. You need to know that before you sign those claims away.

Second, they can negotiate the terms. Severance offers are almost always negotiable. An attorney can push for more money, a longer payout period, extended health benefits, a neutral reference, removal of the non-compete, and narrower confidentiality and non-disparagement language.

Third, they can spot problems. Maybe the release language is too broad. Maybe the agreement tries to waive rights that can't legally be waived in California, like the right to file a complaint with the Civil Rights Department or the Labor Commissioner here in Los Angeles, or the right to discuss working conditions.

The Honest Truth About Timing

Most people who come to us wish they had called before they signed. Once you sign a severance agreement, your options shrink dramatically. The 7-day revocation period only applies if you're over 40. For everyone else, the signature is generally final.

You have time. Use it. If you're in Los Angeles or anywhere in Southern California, our employment attorneys offer free consultations specifically for severance agreement review. We can tell you what your agreement actually says, whether the offer is fair, and what your options are. No cost, no obligation, and no pressure to hire us.

The company had their lawyers draft that agreement. You deserve to have someone in your corner too.