You didn’t see it coming. One day, you’re logging into work like usual, and the next, you’re being told your position is being eliminated. Maybe it was budget cuts. Maybe restructuring. Perhaps no explanation at all.
Whatever the reason, you’re now staring down a severance agreement—and wondering what to do next. If you’re feeling unsure, pressured, or just plain overwhelmed, take a breath. Here’s what you should know before signing anything.
What Is a Severance Agreement, Really?
It’s more than just a paycheck on your way out the door.
A severance agreement is a legal contract between you and your employer. It often includes a sum of money or continued benefits—and in return, you agree not to sue the company or take specific actions after you leave.
At first glance, it might look like a generous parting gift. But hidden between the lines are terms that can impact your future, your finances, and your freedom to talk about what happened.
That’s why it’s essential to slow down and read carefully—or better yet, get some legal eyes on it before you sign.
What’s Really in That Severance Agreement?
Let’s break down a few standard clauses you’ll want to pay attention to:
- Severance Pay: This is the headline item. You might be offered a lump sum or weekly payments for a few months. But don’t let the dollar signs distract you from the fine print.
- Release of Claims: Most agreements ask you to waive your right to sue your employer—even if you believe your termination was unfair or discriminatory. Once you sign, you usually can’t go back.
- Non-Disparagement: This is a fancy way of saying, “Don’t badmouth us.” It may even apply to social media or future job interviews.
- Confidentiality: In some cases, you’re not allowed to talk about the agreement at all—not even to coworkers or friends.
- Non-Compete / Non-Solicit: These clauses can limit where you work next or who you can do business with. If your field is small or specialized, that could be a big deal.
- COBRA and Benefits: The agreement may mention your right to continue health insurance under COBRA. But that doesn’t mean your employer is footing the bill—it might still be on you.
These terms aren’t always easy to spot or understand—and employers count on that. That’s why it helps to have someone explain what they really mean to you.
Mistakes We See All the Time
You’re not alone if you’re tempted just to sign and move on. But here are a few things we see far too often:
- Signing too fast: You might feel pressured to sign right away, especially if you’re worried about losing the money. Don’t rush. You usually have time—and you have rights.
- Assuming it’s non-negotiable: Just because it’s labeled a “standard agreement” doesn’t mean you can’t ask for changes.
- Overlooking the long-term impact: Restrictions in the agreement could follow you into your next job—or stop you from working in your industry for months.
We know how hard it is to think clearly when you’re suddenly out of work. But this document could shape your next chapter—so it’s worth a closer look.
Yes, You Can Negotiate
It might feel like you don’t have leverage, especially if the termination came out of nowhere. But you’d be surprised how often we’re able to negotiate:
- More severance pay
- Continued health benefits
- Removal or softening of non-compete language
- A mutual reference or positive exit letter
Even minor adjustments can make a big difference during your job search and transition. You don’t have to go it alone—we’re here to step in and advocate for what’s fair.
How We Can Help You Move Forward
At Kozloff Stoudt, we’ve worked with employees throughout Wyomissing who’ve found themselves suddenly out of a job—with a severance agreement in hand and no idea what to do next.
We’ll walk through the agreement with you, explain every term in plain English, and let you know where you have room to push back. If needed, we’ll negotiate directly with your employer to protect your rights and help you leave on better terms.
You may only get one chance to do this right—let’s make sure it works in your favor.
Don’t Sign Until You’re Sure
Getting laid off is tough. And facing a stack of legal documents doesn’t make it any easier. But with a bit of support, you can take this moment and turn it into a smart next step. Before you sign that severance agreement, let’s talk. Contact an employment attorney who can help you move forward with confidence.