Before You Sign. A Severance Agreement Checklist

A severance agreement is a legal document, often presented at one of the more stressful moments in someone's career. Working through it methodically, rather than reactively, is worth the extra time it takes.

Before you do anything else

Confirm how much time you actually have to review the agreement. If you are 40 or older, federal law generally guarantees a minimum review period, and a separate window to revoke your signature after signing. Know these numbers before you do anything else.

What to actually read carefully

A few sections deserve particular attention, since they are often where the most consequential terms live:

• The release of claims, which determines what legal rights you are giving up
• Any non-compete or non-solicitation clause, and how broadly it is written
• Confidentiality and non-disparagement language, and what it does and does not cover
• The exact severance amount, payment schedule, and whether it is structured as a lump sum or ongoing payments

What to compare against real data

Once you understand what the agreement actually says, compare its terms against real benchmarks for your industry, tenure, and role. A package that looks reasonable in isolation can look different once compared against what similar workers at similar companies have actually received.

What to ask for if something feels off

If any term feels unusually broad, unclear, or inconsistent with how you understood your separation, it is reasonable to ask questions or request changes before signing. A short consultation with an employment attorney is also worth considering, particularly if the layoff felt targeted or the terms feel unusual.

What not to do

Do not sign the same day it is presented simply to end the discomfort of the moment. Do not assume verbal promises will be honored if they are not reflected in the written agreement. And do not assume the first offer is the final one.

Frequently asked questions

Is it normal to take time before signing a severance agreement? Yes. Taking the full review period available to you, and using it to actually review the terms, is standard and expected practice.

Should I get a lawyer to look at my severance agreement? It is not required in every case, but a brief consultation is commonly recommended, particularly for larger packages or agreements with broad non-compete or confidentiality terms.

What is the most commonly overlooked part of a severance agreement? The specific scope of the release of claims and any non-compete language are frequently underexamined, despite often being the most consequential terms in the document.