A severance agreement may exchange compensation or benefits for a broad release of legal claims. It can also regulate confidentiality, non-disparagement, return of property, cooperation, references, restrictive covenants, and future communications. The amount offered matters, but so do the rights being waived and the obligations that continue after signing.
Karlin Legal LLC reviews and negotiates severance agreements for employees in Chicago, Cook County, and surrounding communities. Brad Karlin explains the language in practical terms, evaluates potential employment claims, and helps clients decide whether signing, negotiating, or declining makes sense.
What a Severance Review Covers
- The payment amount, timing, tax treatment, and conditions
- The scope of the release and any claims excluded from it
- Health coverage, bonuses, commissions, equity, expenses, and unused paid time
- Confidentiality, non-disparagement, cooperation, and reference terms
- Noncompetition, nonsolicitation, and other post-employment restrictions
- Return-of-property, transition, and continuing-assistance duties
- Enforcement, repayment, fee-shifting, arbitration, and choice-of-law clauses
A Release Can Be Broader Than It Looks
Many agreements ask the employee to release known and unknown claims through the signing date. That may include claims involving termination, discrimination, retaliation, wages, bonuses, leave, accommodation, contracts, or other workplace rights. A review should compare the proposed release with the employee’s history, documents, deadlines, and goals.
Special Rules May Apply
Federal law imposes special requirements on certain waivers of age-discrimination claims. Group termination programs may involve additional disclosure requirements. Agreements generally cannot prevent lawful agency participation, and some provisions may be limited by other laws. The EEOC’s severance-waiver guidance provides a federal overview, but individual advice depends on the agreement and facts.
Can the Offer Be Negotiated?
Sometimes. Negotiation may address money, payment timing, benefits, a neutral reference, announcement language, return of property, restrictive covenants, confidentiality, or mutual non-disparagement. Leverage depends on the employee’s potential claims, position, documents, employer priorities, and the wording of the offer. No lawyer can promise an increase, and negotiation can involve tradeoffs.
Before You Sign
- Read every page, attachment, and incorporated policy.
- Confirm the exact deadline and do not assume it will be extended.
- Gather the offer, termination communications, compensation records, reviews, and relevant complaints.
- Do not rely on verbal promises that are absent from the written agreement.
- Get advice before accepting payment or signing electronically.
Request a Chicago Severance Agreement Review
A severance review may also uncover issues involving wrongful termination, discrimination, retaliation, or unpaid compensation. To ask about review availability and fees, call (312) 870-0043 or complete the confidential contact form.
Attorney Advertising. This page provides general information and is not legal advice. Submitting an inquiry does not create an attorney-client relationship. Past results do not guarantee a similar outcome.
Common Questions About Severance Agreement Review
Should I have a severance agreement reviewed before signing?
Yes, especially if the agreement includes a broad release, non-disparagement terms, confidentiality, restrictive covenants, repayment language, cooperation duties, or a short deadline to accept.
Can severance terms be negotiated?
Often they can. Negotiation may involve compensation, benefits, references, neutral language, unemployment issues, tax language, restrictive covenants, payment timing, and what claims or rights are being released.
What should I send for a review?
Provide the agreement, deadline, termination or layoff paperwork, compensation information, relevant emails, offer letters, bonus or commission documents, and a short summary of what led to separation.