California Severance Agreements
June 25, 2026What Does a Severance Agreement Review Cost, and What Does the Lawyer Actually Check?
By Jonathan J. Delshad

A severance agreement review in California is usually handled as focused, defined-scope work, and the first consultation is free. What it costs after that depends on a few things: how complicated the agreement is, whether you are 40 or older, and whether you want the lawyer to negotiate or also look for an underlying legal claim. But the fee is the smaller question. The bigger one is how much money and how many rights you could sign away by signing the wrong document.
Your employer's lawyers wrote that agreement to protect your employer. A review puts someone on your side of the table before you give up anything.
At a glance
- The first consultation is free. Severance and executive-agreement reviews are usually handled on a flat-fee basis for the defined task, with the fee terms explained in writing before you decide.
- What it costs depends on the agreement's complexity, whether you are 40 or older, and whether you want the lawyer to negotiate or also check for an underlying legal claim.
- A good review covers far more than the dollar amount: the scope of the release, confidentiality and non-disparagement language, no-rehire terms, deadlines, taxes, and benefits.
- You usually have more time than you are told. California generally gives at least five business days and the right to consult an attorney before signing, and workers 40 or older often get longer.
Is it worth paying a lawyer to review a severance agreement?
Often, yes. A severance agreement is a trade: you get money or benefits, and your employer gets a release of your legal claims plus a list of promises you have to keep. Three things tend to decide whether a review pays for itself: the dollars on the table, the rights you are being asked to waive, and the obligations that follow you after you sign.
A review tends to be worth it when the package is large, when you suspect the layoff or firing was not clean, when you are over 40, when there is equity or a bonus in play, or when the agreement is loaded with confidentiality, non-disparagement, or no-rehire language. In those situations a short, defined review can protect far more than it costs. We will tell you honestly when an agreement is standard and when it is not.
What does a severance agreement review cost in California?
The consultation is free. Severance and executive-agreement reviews are usually handled on a flat-fee basis for the defined task, set out in a written fee agreement, separate from the contingency model used for litigation. We will explain the specific fee terms in writing before you decide to move forward, and we do not ask you to commit before you understand them.
What moves the cost up or down:
- How long and how complex the agreement is.
- Whether the federal age rules apply, which add notice and timing requirements for anyone 40 or older.
- Whether it is a standard separation package or a negotiated executive exit with equity, vesting, or bonus terms.
- Whether you want a review only, or a review plus negotiation of better terms.
If the review turns up an underlying legal claim, for example wrongful termination, discrimination, retaliation, or a wage and hour problem, that is a different kind of matter. We handle most employment cases on a contingency-fee basis: you do not pay an attorney's fee unless we recover for you, and you are not responsible for the costs we advance if there is no recovery. We will explain the specific fee terms in writing before you decide to move forward.
What does the lawyer actually check in a severance agreement?
A real review is not just a glance at the dollar amount. We read every clause and compare it against your facts. The core items we check:
- Release of claims. Which legal rights you are giving up, whether the release reaches unknown claims, agency claims, or wage claims, and whether any rights have to be carved out.
- The money and the timing. Gross severance amount, when and how it is paid, and how it is taxed.
- Health benefits. Continuation of coverage or COBRA reimbursement.
- Confidentiality. Whether a gag clause is overbroad. California protects your right to discuss unlawful workplace conduct, and some confidentiality language requires statutory carve-outs.
- Non-disparagement. Whether the language preserves your statutory right to talk about unlawful conduct and working conditions.
- No-rehire. California law limits no-rehire provisions in employment dispute resolutions (Code Civ. Proc. § 1002.5), subject to exceptions, and these clauses can affect future work.
- References and unemployment. Reference or neutral-reference language, and whether the employer says it will contest your unemployment benefits.
- The deadline and any revocation period. How long you actually have, and whether you can change your mind after signing.
- Tax, indemnity, cooperation, return-of-property, and arbitration terms. Provisions that can shift tax risk onto you or create ongoing duties after you are paid.
The safest review requires seeing the complete agreement, not screenshots. Bring every page.
What are the severance red flags?
Some terms call for a careful read before you sign. The issue is not whether a clause sounds intimidating. It is whether the language is lawful, enforceable, overbroad, or negotiable under your facts. The ones we watch for most:
- "Sign today" pressure. A demand to sign immediately can collide with California's review-time protections and is a practical warning sign on its own.
- Broad confidentiality or gag clauses. Language that tries to stop you from discussing unlawful workplace acts may be unenforceable or may require specific carve-outs.
- No-rehire clauses. When you are settling a dispute you have raised, California limits these; in an ordinary severance they are often enforceable, and they can quietly close doors at a company or its affiliates.
- An overbroad release. A release may be drafted to sweep in unknown claims, government-agency claims, or wage issues that need special treatment.
How long do you have to sign a severance agreement in California?
Usually more time than you are being told. California separation-agreement rules generally require notice of your right to consult an attorney and a reasonable time of at least five business days to do it (Government Code § 12964.5). If you are 40 or older, federal age-discrimination rules (the Older Workers Benefit Protection Act, 29 U.S.C. § 626(f)) often add their own requirements: typically at least 21 days to consider an individual agreement (45 days in a group layoff) and 7 days to revoke after signing. Do not sign the same day if you are unsure.
These are general ranges, and they can run early or turn on the specific facts of your separation. Do not calendar a deadline from a guide. Confirm it with us so it is calculated against your actual documents.
What to bring to a severance review
Make the review fast and useful by organizing it first. Ask for the agreement in a searchable PDF or Word file. Save every draft and every email that sent you revised terms. Bring the key dates: any complaint you made, any leave or accommodation request, any discipline, and the separation itself. The more complete the picture, the more we can tell you in one sitting.
Frequently asked questions
Is it worth paying a lawyer to review a severance agreement?
Often, yes, especially when the package is large, when you are over 40, when there is equity or a bonus involved, or when the firing or layoff may not have been lawful. A focused review can protect far more than it costs. The consultation is free, so the first conversation costs you nothing.
Can you negotiate a severance package after a layoff?
Sometimes. Severance is frequently negotiable, and an offer is rarely as fixed as it looks. Bargaining power and timing matter, which is why a review before you respond tends to give you the most options.
Do I lose the offer if I have a lawyer look at it?
Generally no. California rules contemplate giving employees time and the right to consult an attorney before signing. A demand that you sign on the spot is itself a reason to slow down.
What if I am 40 or older?
Federal age-discrimination rules usually require extra written notices and longer windows to consider and revoke. If those steps were skipped, the waiver of your age claims may not hold up. This is one of the first things we check.
What if I already signed?
It may still be worth a look. Some agreements include a short revocation window, and some clauses are not enforceable as written. Contact us promptly, because timing matters.
Talk to us before you sign
If a severance agreement is in front of you, the smartest move is to have it reviewed before you sign anything. We focus on representing employees across California, and most of our work is in Los Angeles. The consultation is free.
Call (424) 255-8376 or send us your agreement through our contact form, and we will tell you what it really says.
The Law Offices of Jonathan J. Delshad is a Los Angeles based employment law firm representing employees across California in wrongful termination, discrimination, retaliation, harassment, and wage and hour matters. Representing employees is the core of the firm's practice. Mr. Delshad serves as Editor-in-Chief of the California Wrongful Termination Law Review and trained at Latham & Watkins. Recognition includes Super Lawyers (2022 to 2025), Best Lawyers (since 2017), and an Avvo 10.0 "Superb" rating. Reviewed for California employment law accuracy. Last updated: June 25, 2026.
Attorney advertising. This article is educational only and is not legal advice. Reading it does not create an attorney-client relationship, which exists only under a signed engagement agreement. Every case is different, and outcomes depend on the specific facts. Deadlines can run early, so consult a lawyer promptly about your situation.