A severance agreement is a binding contract releasing your claims. Under the Older Workers Benefit Protection Act, workers aged 40 and over must be given at least 21 days to consider an individual agreement, 45 days in a group termination, and a 7-day revocation period after signing that cannot be waived. In a group layoff the employer must also disclose the job titles and ages of those selected and not selected.
The release is the whole document
Everything else is terms around one exchange: money for giving up your right to sue. Read the release clause first and read it properly, because it is what you are actually agreeing to.
Look at how broad it is. Most cover all claims known and unknown up to the signing date. Some reach further than they lawfully can, and some carve out claims that cannot be waived at all.
What cannot be waived, whatever the document says
Your right to file a charge with a government agency, or to cooperate with one. Agreements frequently say you waive the right to any monetary recovery from such a proceeding, which is a different and generally lawful thing — but the right to report is not waivable.
Also unwaivable: the 7-day revocation period for age claims if you are 40 or over, vested retirement benefits, and unemployment insurance eligibility. If the agreement appears to remove any of those, that is a signal about the document as a whole.
The clauses that cost you later
Non-compete. Check duration, geography and how the restricted activity is defined. Enforceability varies enormously by state and several restrict or bar these outright.
Non-solicit. Often broader than people expect, sometimes covering former colleagues as well as clients.
Non-disparagement. Check whether it runs both ways. A one-sided clause is common and asking for mutuality is a reasonable request that is frequently granted.
Cooperation clauses, requiring your assistance in future litigation. Ask whether your time is paid, because these can extend for years.
Confidentiality about the agreement itself, which is standard and worth noticing, since it prevents you comparing terms with colleagues.
The group disclosure, if you are 40 or over
In a group termination the employer must give you a list of the job titles and ages of everyone selected and everyone in the same decisional unit who was not.
That attachment is the most informative document you will receive. It shows whether the selection has an age pattern, and it is the reason the 45-day consideration period exists. People routinely sign without reading it, which defeats its entire purpose.
Check what happens to everything else
Equity — what vests, what is forfeited, and how long you have to exercise. Health coverage — when it ends and whether they contribute. Accrued and unused vacation, which several states require to be paid out regardless of any agreement. Any bonus already earned but not yet paid, which is frequently omitted and frequently recoverable by asking.
These are the terms most often left out of a first draft, and adding them is usually a matter of asking rather than negotiating.
The timeline you actually have
If you are 40 or over: 21 days to consider, 45 in a group termination, plus 7 days to revoke after signing. The revocation period cannot be waived, and any agreement pressuring you to sign immediately is not describing the law accurately.
Under 40 there is no statutory period, but you can still ask for time and it is almost always given. The urgency in the room is a negotiating posture, not a deadline.
Before you sign anything
Have an employment lawyer read it. Most will review a severance agreement quickly and many do the first assessment at no cost, which against a document binding you for a year or more is the cheapest decision available.
Take copies of everything first — the agreement, the group disclosure, your pay records and anything documenting your work — because access is usually cut on the last day.
This is general information rather than legal advice, and severance terms turn on your state and your specific circumstances.
Common questions
How long do I have to consider a severance agreement?
If you are 40 or over, at least 21 days for an individual agreement and 45 in a group termination, plus 7 days to revoke after signing.
Can the revocation period be waived?
No. The 7-day revocation right cannot be waived, so an agreement claiming otherwise is defective.
What is the group disclosure?
A list of job titles and ages of those selected and not selected in the same decisional unit. It is the most informative document you will receive.
What cannot be released?
The right to file a charge with or cooperate with a government agency, along with unemployment benefits, workers' compensation and vested retirement money.
What often appears for the first time?
New or extended non-competes and non-solicits. That is a substantive new obligation added to a payment you were likely getting anyway.
What cannot be waived in a severance agreement?
Your right to file with or cooperate with a government agency, the 7-day revocation period for age claims, vested retirement benefits and unemployment eligibility.
What is the group disclosure?
In a group termination, a list of job titles and ages of everyone selected and everyone in the decisional unit who was not. It shows whether selection has an age pattern.
How long do I have to decide?
If you are 40 or over, 21 days to consider, 45 in a group termination, plus 7 days to revoke afterwards. The revocation period cannot be waived.