Can I negotiate what my former employer says about me?

Yes. Reference language, departure characterization, and employment verification terms are all negotiable parts of a severance agreement. You can specify exact language, designate who serves as your reference, and control how your departure is coded in the HR system.

What should I ask for in terms of references in my severance?

At minimum, negotiate for a neutral departure characterization (position eliminated or reduction in force) and rehire eligibility. Ideally, get a written reference letter on company letterhead, agreed-upon verbal reference language, and mutual non-disparagement.

Can my former employer give me a bad reference?

Without a severance agreement that specifies reference terms, your former employer has broad discretion in what they say, as long as it's truthful. A severance agreement with specific reference language contractually binds them to follow the agreed-upon terms, giving you legal recourse if they violate it.

Negotiating a Reference Letter in Your Severance Agreement

You've been let go, and the money in the severance offer is the first thing you're focused on. That's natural. But here's something most people don't think about until it's too late: what is your former employer going to say about you? When a recruiter calls to verify your employment, what will HR tell them? When a hiring manager asks your old boss why you left, what's the answer? If you don't negotiate this into your severance agreement, you're leaving it up to the company. And the company's interests are not your interests.

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Why Reference Language Matters More Than You Think

In Los Angeles, where industries like entertainment, tech, and healthcare are interconnected, what your former employer says about you carries enormous weight. A neutral "we can only confirm dates and title" response sounds professional, but it also sounds like the company is hiding something. Experienced hiring managers know what that means. It means the departure wasn't clean, or the company doesn't want to say anything positive.

A coded negative reference can be even worse. "They're not eligible for rehire" or "I can only confirm their employment dates" often translates to a red flag in the recruiter's mind. You may never know it's happening, and you may never get the chance to explain.

This is why reference terms belong in the severance agreement. Once it's in writing, the company is contractually bound to follow it.

What You Can Negotiate

A written reference letter. Ask for a signed letter on company letterhead from a specific person, ideally your direct manager or a senior executive. The letter should describe your role, your contributions, and confirm a positive departure. Having this in hand before you start interviewing eliminates the uncertainty of what the company might say later.

Agreed-upon verbal reference language. Specify exactly what the company will say when contacted by phone or email. This includes who will serve as your reference contact, what they will say about your performance and departure, and the specific language they'll use. Write it out in the agreement so there's no ambiguity.

Neutral reference policy. At minimum, negotiate for the company to confirm your dates of employment, title, and that you departed as part of a workforce reduction. This is better than leaving it open-ended. Some companies have a blanket policy of confirming only dates and title, but you can negotiate for additional favorable language on top of that baseline.

Departure characterization. How the company codes your departure in their HR system matters. "Laid off" or "position eliminated" is very different from "terminated" or "involuntary separation." When a future employer runs a background check or employment verification, the code in the system is what comes back. Negotiate for language that reflects a neutral or positive departure.

Rehire eligibility. Make sure your HR file reflects that you are eligible for rehire. Under California's AB 749, no-rehire provisions are void in most severance agreements anyway, but having affirmative rehire eligibility in the system is better than relying on the law to override a database flag.

Non-Disparagement Goes Both Ways

Most severance agreements include a non-disparagement clause that prevents you from saying negative things about the company. Push for mutual non-disparagement. This means the company and its employees also can't say negative things about you. This protects you from off-the-record comments by your former manager to industry contacts.

Under SB 331, non-disparagement clauses cannot prevent you from discussing harassment, discrimination, or illegal conduct. But for general departure language, mutual non-disparagement adds a layer of protection that a one-sided clause doesn't provide.

LinkedIn and Social Media

Think about the story your departure tells on LinkedIn. If you were VP of Marketing for five years and suddenly you're "open to work" with no explanation, people notice. Negotiate with the company about the timing and language of any public announcements about your departure. Some severance agreements include a joint communications plan that specifies what both parties will say publicly.

If the company is going to issue an internal email about your departure, you should have input on the language. "We thank [name] for their contributions and wish them well" is very different from "[Name] is no longer with the company, effective immediately."

How to Get These Terms

Reference language is one of the easiest terms to negotiate because it costs the company nothing. They're not writing a check. They're just agreeing to say the right things. Most companies will agree to reasonable reference terms without much resistance, especially when an attorney presents the request professionally.

The key is specificity. Don't settle for vague promises like "we'll give you a good reference." Get the actual words in writing. Get the name of the person who will serve as your reference. Get the departure code that will be entered in the HR system. The more specific the language, the more enforceable it is.

Severance agreements are negotiable, and reference terms are among the most achievable items on the negotiation list. If you're reviewing a severance package in Los Angeles, our employment team includes reference language as a standard part of every negotiation. Free consultation. If we can't improve the overall package, you don't pay.

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