How to negotiate severance
Severance is an offer, not a gift, and most companies have flex on at least one item. Few people ask. Here's what's actually negotiable, what to say, and the small purchase that protects the whole thing.
THE SHORT ANSWER
You can negotiate severance more often than people assume, and asking almost never rescinds the offer. Before you sign, ask politely and specifically for the items with the best odds: more weeks of pay, longer health benefits continuation, a neutral reference policy, unused PTO paid out, or a narrower non-compete. If you're 40 or older, federal law usually gives you 21 days to decide (45 in a group layoff) plus 7 days to revoke after signing. A flat-fee attorney review runs about $150 to $500 and is worth it for anything unusual.
Negotiate before you sign
Severance is paid in exchange for you releasing legal claims. That release is what you're selling, and it's worth something. Once you've signed, the leverage is gone, so every conversation below happens inside your review window, not after.
First, know your clock
If you're 40 or older, federal law (the ADEA, through the Older Workers Benefit Protection Act) usually gives you 21 days to consider an agreement that releases age-discrimination claims, or 45 days in a group layoff, plus 7 days to revoke after you sign. Those numbers are a legal requirement for the release to hold up, not company generosity, and paperwork that skips them is itself a flag worth a lawyer's eyes. Under 40, the agreement sets its own deadline. Either way, there is almost never a reason to sign the same day it's handed to you.
Standard vs. negotiable
Standard
• One to four weeks of pay per year of service
• Health benefits continued for a similar period
• A general release of claims (what they're buying)
Negotiable
• The amount
• How long benefits continue
• References, and what they'll confirm
• Outplacement services
• Non-compete and non-solicit scope
• Unused PTO paid out, and final-check timing
The asks that actually succeed
More weeks of pay. The most common ask and the most commonly granted, especially with tenure, a strong record, or an offer below the one-to-four-weeks-per-year range.
Extended health benefits. Cheap for the company, valuable for you, and it directly moves your coverage deadline.
A neutral reference policy. They confirm dates and title only, in writing. Costs them nothing; protects your next search.
Narrowing restrictive covenants. A non-compete that doesn't match your actual role, or a non-solicit that bans talking to former coworkers, is worth pushing on. These are often overbroad, sometimes unenforceable, and always worth a lawyer's read.
Unused PTO paid out. Some states require it by law; in the rest it's policy, which makes it askable. Check your state's rule first so you know whether you're asking for a favor or for what's owed.
The script
"Thank you for this offer. Before I sign, I'd like to discuss [the amount / the benefits end date / the non-compete scope]."
Polite, professional, brief, and specific. One or two asks, not a list of ten. Put it in writing so there's a record, and aim it at whoever owns the decision (usually HR, sometimes your former manager). The realistic worst case is "the offer stands as written," which is exactly where you already are.
Slow down if you see
• Pressure to sign the same day. The review window exists precisely because of this move.
• A non-compete that doesn't apply to your old role, or a non-disparagement clause with no time limit.
• A group layoff (40+) with no written disclosure of the job titles and ages of who was cut and who stayed. That disclosure is legally required, and reading it can reveal patterns.
• Any clause you can't explain back in your own words. That's not a you problem; that's what the review window is for.
The $150 to $500 that protects everything
Many employment attorneys do flat-fee severance reviews in the $150 to $500 range, and plenty offer a free first call. If the agreement has a non-compete, a big number, unusual clauses, or anything that feels off, that review is the single highest-leverage purchase of your first week. Sign two copies when you do sign, keep one, and email yourself a PDF the same day.
Decode it clause by clause
Severance decoder
A plain-English, read-along guide to what each clause in a typical agreement means, and which ones are worth pushing on.
Open the decoder →
Source: EEOC severance-waiver guidance
The federal 21 / 45 / 7-day rules, from the agency that enforces them.
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Severance, PTO payout, and final paychecks by state
Whether severance affects your unemployment, and whether PTO payout is the law where you live. All 50 states + DC.
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When to get a lawyer
Worth a lawyer's eyes if…
You're 40 or older. Federal law (the OWBPA) gives you 21 days to consider it (45 in a group layoff), plus 7 days to revoke after you sign. If the paperwork doesn't reflect that, that's a flag.
It includes a non-compete, a non-solicit, or a sweeping non-disparagement clause.
The release waives “all claims” and you think you might actually have one (see below).
The amount is large, or the payout is tied to conditions you don't fully follow.
You're being pushed to sign today. There's almost never a real reason to.
See all the lawyer flags
This isn't legal advice. It's a nudge to get a professional's read when the stakes are real.
General information, not legal advice. For non-competes, ambiguous clauses, large amounts, or any discrimination concern, have an employment attorney review the agreement before you sign.
YOUR NEXT STEP
Use your full review window
The free triage dates your signing window (21 or 45 days) next to your other four deadlines, so the negotiation and the lawyer call happen before it closes.
Date my signing window →
Common questions
Can you actually negotiate severance?
Often, yes. Most companies have flex on at least one item, and few people ask. The most successful asks are more weeks of pay, extended health benefits coverage, a neutral reference policy, and narrowing a non-compete. The worst that happens is they say no and the original offer stands; a professional, specific ask almost never rescinds an offer.
How much severance is standard?
A common range is one to four weeks of pay per year of service, plus continued health benefits for a similar period, in exchange for a release of claims. Where you land in that range depends on seniority, tenure, and how much the company wants the release signed. If your offer is below that range for your tenure, that itself is a reason to ask.
How long do I have to decide on a severance offer?
If you're 40 or older, federal law (the ADEA, via OWBPA) usually gives you 21 days to consider it, 45 days in a group layoff, plus 7 days to revoke after signing. Those windows are a legal requirement for the release to be enforceable, not a courtesy. Under 40, the agreement itself sets the deadline, and most still give a review period. Either way, nobody can make you sign the day it's handed to you.
Is a lawyer worth it for a severance review?
For anything with a non-compete, a big number, unusual clauses, or possible discrimination, yes. Many employment attorneys do flat-fee severance reviews in the $150 to $500 range, which is small next to what's in the agreement. It's the single highest-leverage purchase of the first week.