Are wage claims included in a severance agreement release?

Typically, yes. Most severance agreement releases cover wage and hour claims including unpaid overtime, missed meal and rest breaks, unreimbursed expenses, and waiting time penalties. These claims can be worth thousands of dollars and exist independently of the severance, so knowing their value before signing is important.

Can I keep some legal claims while releasing others in a severance agreement?

In some cases, you can negotiate to exclude specific categories of claims from the release. This depends on your leverage and the employer's willingness to agree. An employment attorney can advise on which claims to prioritize preserving based on your situation.

What claims can I never give up in a severance agreement in California?

You cannot waive workers' compensation claims, unemployment benefit rights, the right to file charges with government agencies like the CRD or EEOC, vested pension benefits, or claims based on events that occur after you sign the agreement.

What Claims Am I Giving Up by Signing a Severance Agreement in Los Angeles?

The release in your severance agreement will list dozens of laws and claim types. Most people's eyes glaze over when they see paragraphs of legal citations. But each one represents a specific right you're giving up. Here's what they actually mean.

Discrimination Claims

You're waiving the right to sue for discrimination based on any protected characteristic. The release typically lists these by name:

FEHA (California Fair Employment and Housing Act). Covers discrimination based on race, color, national origin, ancestry, sex, gender, gender identity, gender expression, sexual orientation, age, religion, disability, medical condition, pregnancy, marital status, military/veteran status, and genetic information. This is the broadest state anti-discrimination law in the country.

Title VII of the Civil Rights Act. Federal protection against discrimination based on race, color, religion, sex, and national origin.

ADEA (Age Discrimination in Employment Act). Federal protection for workers 40 and older. If you're in this age group, the OWBPA requires specific procedures for this waiver to be valid.

ADA (Americans with Disabilities Act). Federal protection against disability discrimination.

The value of these claims can be substantial. Juries in Los Angeles County Superior Court and federal court have awarded significant damages in discrimination cases, including back pay, front pay, emotional distress, and punitive damages.

Wrongful Termination Claims

You're waiving wrongful termination in violation of public policy. This covers situations where you were fired for refusing to break the law, reporting illegal activity, exercising a legal right (like taking family leave), or performing a legal duty.

Retaliation Claims

Labor Code Section 1102.5. California's broad whistleblower protection. Covers retaliation for reporting violations of law to a government agency or supervisor.

Other retaliation statutes. Protections for filing workers' comp claims, reporting safety violations, taking medical leave, participating in wage claim proceedings, and other protected activities.

Wage and Hour Claims

This category is often overlooked, but it can be worth significant money:

Unpaid overtime. If you were classified as exempt but shouldn't have been, or if you worked overtime that wasn't properly compensated.

Meal and rest break violations. California requires a 30-minute meal break for shifts over 5 hours and a 10-minute rest break for every 4 hours worked. Missed breaks entitle you to one additional hour of pay per violation.

Unreimbursed business expenses. Under Labor Code Section 2802, Los Angeles employers must reimburse necessary business expenses including mileage, cell phone use, home office costs, and equipment.

Waiting time penalties. If your employer didn't pay your final wages on your last day, penalties accrue at your daily rate up to 30 days.

Inaccurate wage statements. Under Labor Code Section 226, you're entitled to accurate pay stubs. Violations carry penalties of $50 to $100 per pay period.

Contract and Tort Claims

Breach of contract. If your employer broke promises about your employment, compensation, title, or job duties.

Breach of the implied covenant of good faith and fair dealing. A claim that the employer acted in bad faith in the employment relationship.

Fraud and misrepresentation. If the employer made false promises to induce you to take the job or to stay.

Intentional infliction of emotional distress. In cases of extreme or outrageous employer conduct.

The Section 1542 Catch-All

Beyond the specific claims listed, the release includes a California Civil Code Section 1542 waiver. This means you're also giving up claims you don't know about yet. If you discover later that your employer was violating wage laws you weren't aware of, or that discriminatory decisions were made behind closed doors, the Section 1542 waiver means those claims are gone too.

What You Can't Give Up

Even with this comprehensive list, certain rights survive the release: workers' compensation claims, unemployment benefit rights, the right to file charges with government agencies (though you can waive monetary recovery), vested pension benefits, and claims arising after the signing date.

Why This List Matters

Each claim type has a potential value. Discrimination claims can be worth five or six figures. Wage claims for a multi-year employee can add up to thousands. If you have strong claims in any of these categories, the severance offer should reflect the value of what you're releasing.

An employment attorney can evaluate which of these claims apply to your situation and what they might be worth. That's the only way to know whether the severance offer is a fair trade. Free consultation for employees in Los Angeles and Southern California.