Losing your job is stressful enough—but when HR sends you a severance agreement and says, “We need your signature by the end of the day,” that’s a huge red flag. If your employer truly believes they’ve treated you fairly, they won’t pressure you into signing away valuable rights without giving you some time away from work to think things over. But when they push for a quick signature, it often means there’s something in that agreement they don’t want you to scrutinize too closely.
Why the Rush?
Severance agreements aren’t just about money. Buried in the fine print are often clauses that can seriously impact your future for years to come, including:
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Non-compete clauses that limit where you can work next.
- Training repayment agreement provisions (or TRAPS, as I call them) that require you to pay back any funds your employer spent training you.
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Broad confidentiality agreements that could prevent you from speaking out about workplace issues or comparing your severance package to the one your colleague received.
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A waiver of legal claims that will stop you from suing them including for valuable claims you may not even realize you have.
Employers know that in many cases, once you sign, you can’t take it back. That’s why some will use high-pressure tactics to get your signature before you have a chance to think through your options. It doesn’t help that you’re in a particularly vulnerable spot, having just had the rug pulled from under you.
You Have Time to Think it Over—Especially If You’re 40+
If you’re 40 years old or older, a federal law called the Older Workers Benefit Protection Act requires your employer give you at least 21 calendar days to consider the severance agreement. That clock starts the day they hand it to you, and you can take as much or as little of that time as you want before deciding whether to sign it. Even if you’re under 40, your employer should give you a reasonable amount of time to review the agreement, hire counsel, and get legal advice to make sense of it all. If they don’t, that’s a huge red flag that the deal they’re offering is one-sided—and not in your favor.
What to Do If You’re Being Pressured to Sign
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Slow down. You don’t have to sign anything on the spot, even if your employer makes it seem like you do. You can always ask a Human Resources representative or the person offering you the severance package for more time to review the agreement and ensure you fully understand its terms.
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Get legal advice from a licensed wage and hour attorney in your area. It’s rare that severance agreements are written in plain, easy-to-understand language. An experienced attorney can help you make sense of what you’re being asked to sign and either negotiate better terms for your or help you negotiate better terms yourself.
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Trust your instincts. If something feels off, it probably is. Employers rarely offer more than they have to, so don’t assume their first offer is their best and final. More often than not their first offer is so one-sided that it protects only their interest and not yours.
A severance agreement is not a parting gift—it’s a contract with real career and legal consequences. If your employer is rushing you to sign, that’s usually a red flag that they likely have more to lose than you do. Don’t sign away your rights without understanding what you’re agreeing to give up and for how long. If you need help understanding or negotiating your severance package, we’re here to help you get the best deal possible.