How much does it cost to have a lawyer review a severance agreement?

Employment lawyers typically charge $500 to $2,500 for a severance agreement review. Many offer flat-fee reviews. The investment often pays for itself many times over, as lawyers routinely negotiate improvements worth 5-10x their fee.

How long do I have to sign a severance agreement?

If you are 40 or older, the Older Workers Benefit Protection Act (OWBPA) requires at least 21 days to review an individual agreement, or 45 days if you are part of a group layoff. You also get 7 days to revoke after signing. Younger workers should ask for at least a week to review, even if not legally required.

Can I negotiate my severance agreement?

Yes. Most severance agreements are negotiable. Common negotiation points include more weeks of pay, extended COBRA coverage, removal or narrowing of non-compete clauses, mutual non-disparagement, prorated bonus payments, and equity acceleration. Employees who negotiate typically receive 30-50% more than the initial offer.

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Frequently Asked Questions

Is my agreement text stored or shared?

No. Your agreement text is processed in real-time for analysis and is not stored on our servers. The text is sent securely to our AI provider for analysis and is not retained.

Is this legal advice?

No. This tool provides general information and AI-powered analysis for educational purposes only. It is not a substitute for professional legal advice. Always consult with a qualified employment attorney before making decisions about your severance agreement.

How many agreements can I analyze?

You can analyze up to 3 agreements per hour for free. For a comprehensive review of your specific agreement, consider consulting a licensed employment attorney in your state.

What should I look for in a severance agreement?

Key areas include: severance pay amount (typically 1-2 weeks per year of service), benefits continuation (COBRA), non-compete and non-solicitation clauses, release of claims, confidentiality requirements, non-disparagement clauses, and the deadline to sign. Our analyzer checks all of these and more.

What Is a Severance Agreement?

A severance agreement (also called a separation agreement or termination agreement) is a legally binding contract between an employer and a departing employee. It sets out the financial and legal terms of your separation, including how much you will be paid, what benefits continue, and what rights you are giving up.

Unlike a simple termination letter, a severance agreement asks you to waive your right to sue your employer in exchange for the severance package. This means every clause matters. Signing without understanding the terms can cost you tens of thousands of dollars or the ability to pursue valid legal claims.

Most severance agreements are negotiable. According to industry data, employees who review their agreement carefully and negotiate effectively receive 30-50% more than the initial offer. Use our free severance calculator to benchmark your offer against market norms before accepting.

Key Clauses in a Severance Agreement

Release of Claims

The most consequential clause. By signing, you typically waive your right to file lawsuits for wrongful termination, discrimination, harassment, wage theft, and other employment claims. Review exactly which claims are covered; some agreements use overly broad language that waives rights you may not realize you have. If you are 40 or older, federal law (ADEA/OWBPA) requires you be given at least 21 days to consider the agreement and 7 days to revoke after signing.

Non-Compete Clause

Restricts where you can work after leaving. A broad non-compete can prevent you from working in your industry for 12-24 months within a wide geographic area. Some states like California, North Dakota, and Oklahoma ban most non-competes entirely. Always negotiate to narrow the scope, shorten the duration, or remove it.

Non-Solicitation Clause

Prevents you from recruiting former colleagues or contacting clients. While more enforceable than non-competes, these clauses should be reasonably scoped. Watch for overly broad definitions of "clients" that extend to anyone you interacted with.

Confidentiality / Non-Disclosure

Most agreements require you to keep the severance terms confidential. Some go further and prohibit discussing the circumstances of your departure. Ensure the clause allows exceptions for family members, financial advisors, attorneys, and government agencies.

Non-Disparagement

Prohibits you from making negative statements about the company. Critically, this should be mutual: your employer should also agree not to disparage you. If the clause is one-sided, negotiate to make it reciprocal.

Cooperation Clause

Requires you to assist with litigation, regulatory inquiries, or transition tasks after your departure. This is reasonable in scope, but watch for open-ended obligations that could demand significant unpaid time. Negotiate for hourly compensation for cooperation beyond an initial period.

Red Flags in Severance Agreements

Our AI analyzer checks for these common red flags. If your agreement contains any of these, consider consulting a licensed employment attorney in your state before signing.

!Broad non-compete lasting more than 12 months

!One-sided non-disparagement clause (only binds you)

!Waiver of unknown future claims

!No OWBPA compliance (if you are 40+)

!Unreasonably short deadline to sign

!No mention of COBRA or benefits continuation

!Vague language around final paycheck and PTO payout

!Blanket intellectual property assignment

!Open-ended cooperation obligations with no compensation

!Clawback provisions tied to vague conditions

!No carve-out for government agency complaints (EEOC, DOL)

!Severance pay well below industry norms

When Should You Have a Lawyer Review Your Severance Agreement?

While our AI analyzer provides a solid initial review, there are situations where professional legal counsel is strongly recommended:

✓Your severance package is worth more than $10,000
✓The agreement includes a non-compete or non-solicitation clause
✓You suspect your termination was discriminatory or retaliatory
✓You are a senior executive with equity, deferred compensation, or complex benefits
✓The agreement references confidential information or trade secrets
✓You are part of a mass layoff (WARN Act may apply)
✓You have potential legal claims against your employer

Employment lawyers typically charge $500-$2,500 for a severance agreement review, but routinely negotiate improvements worth 5-10x their fee. Consider consulting a licensed employment attorney in your state.

How to Negotiate After Reviewing Your Severance Agreement

Once you have analyzed your agreement, you are in a better position to negotiate. Here is a proven approach:

Benchmark your offer. Use our severance calculator and benchmark data to understand what others in your role and industry typically receive.
Identify your leverage. Potential legal claims, institutional knowledge, and client relationships all give you negotiating power.
Focus on 2-3 items. Asking to improve everything at once is less effective than prioritizing the highest-value changes (more weeks, COBRA extension, non-compete removal).
Put it in writing. Send a professional counter-proposal via email so there is a clear record of what was discussed.
Note the deadline in your agreement. Review periods commonly run 21-45 days, and can be longer where the OWBPA applies (workers 40+, employers with 20 or more employees, releases waiving age claims).

Read our full guide: How to Negotiate a Better Severance Package →

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