Severance Agreement Review Checklist

Your employer offered you a severance package. Before you sign, make sure you know exactly what you're giving up.

A severance agreement is a contract. In exchange for severance pay, you are almost certainly being asked to waive your right to sue. That trade may be fair — or it may not. Here is what to review.

Release of Claims

The most important provision. What legal claims are you waiving? A broad release typically covers discrimination, retaliation, wrongful termination, and all other potential claims. Understand the scope before you sign.

Severance Amount

Is the severance amount fair? Consider your tenure, salary, the strength of any potential legal claims, and what a comparable case might be worth. Do not accept the first number if you have leverage.

Non-Compete / Non-Solicitation

Are you being restricted from working for competitors or contacting clients? In Oklahoma, non-competes are generally unenforceable against employees (40 O.S. § 219A) — but non-solicitation clauses may still be binding.

Non-Disparagement

Are you being prohibited from saying anything negative about the employer? Is this obligation mutual — meaning the employer also agrees not to disparage you? If it's one-sided, negotiate.

Confidentiality

Are you being prohibited from disclosing the existence or terms of the agreement? This is standard, but understand what it means — you may not be able to tell anyone (including future employers) about the severance.

Reference Provision

What will the employer say if contacted as a reference? Negotiate neutral or positive reference language as part of the agreement.

Benefits Continuation

Does the agreement address health insurance (COBRA), vesting of stock options, 401(k) matches, or other benefits? Make sure you understand when coverage ends.

Return of Property

Are you required to return company equipment, files, or data? Are there carve-outs for your personal files and documentation?

Cooperation Clause

Is the employer requiring you to cooperate with future litigation or investigations? This can create open-ended obligations — negotiate reasonable limits.

Timing and Revocation Rights

If you are 40 or older, the Older Workers Benefit Protection Act (OWBPA) requires the employer to give you at least 21 days to consider the agreement and 7 days to revoke after signing. If this language is missing, the release of ADEA claims may be unenforceable.

Should You Negotiate?

Almost always yes. Severance agreements are negotiable. The employer offered you a severance because they want something from you — typically a release of claims and certainty. That means you have leverage. An employment attorney can help you evaluate whether the offer is fair and negotiate better terms.

Do Not Rush

Never sign a severance agreement under pressure. If your employer pushes you to "sign today or lose the offer," that is a red flag. You are entitled to time to review the agreement with an attorney — and in many cases, you are legally entitled to at least 21 days.

Severance Agreement Review Checklist

Should You Negotiate?

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