Understanding Severance
Agreements
What Is A Severance Agreement?
When your employment comes to an end, employers in California may offer you a Severance Agreement. A Severance Agreement is a contract between an employer and an employee that outlines the terms of the employee’s departure. This legal document outlines the terms and conditions of your departure and any associated benefits. Typically, these agreements include compensation in exchange for the employee’s agreement to waive certain legal rights–such as, filing a lawsuit against the employer. While severance pay is not mandated by Federal Law, many employers offer it to maintain goodwill or to safeguard against potential legal action.
Key Provisions in a Severance Agreement
As an employee, it is crucial to understand the complexities of these Agreements, so you can make informed choices that safeguard your rights.
Severance Pay: Additional compensation beyond statutory requirements.
Continuation of Health Benefits: Ensuring access to healthcare post-employment.
Non-Disclosure Agreements (NDAs): Restrictions on sharing company information.
Non-Disparagement Clauses: Prohibiting negative statements about the employer.
Other Benefits: Tailored provisions based on individual circumstances.
While no mandate requires employers to provide severance, there is a California Law, SB 331 (signed into law in October 2021), which introduced the following important provisions:
Time to Review: You have a minimum of five (5) days to review the Severance Agreement.
Consulting with an Attorney: Workers or former employees have the right to consult with an attorney.
Protection Against Retaliation: Employers cannot prevent discussion of fact-based information related to cases or claims of retaliation, harassment, bias, and other protected characteristics.
Intersection of Severance Agreements and Wrongful Termination
Wrongful termination occurs when an employee is dismissed from their job for illegal reasons, including but not limited to discrimination, retaliation, or failure to comply with Federal and State Labor Laws. If you believe your termination was wrongful, accepting a severance package without legal consultation may limit your ability to challenge the termination, or seek further compensation.
Reviewing the Terms and Conditions of a Severance Agreement
Before signing any Severance Agreement, carefully review the terms and conditions. Ensure you understand all provisions, including those related to:
Wrongful Termination: Protection against unjust dismissal.
Labor Violations: Addressing any violations of labor laws.
Personal Injury: Don’t let illegal severance terms waive your rights to pursue compensation for injuries suffered while on the job.
Wage and Hour Matters: Ensuring fair compensation for hours worked.
Retaliation and Discrimination: Know Your Rights
Retaliation and discrimination in the workplace are prohibited under various Federal and State Laws.
Retaliation: Adverse actions taken by an employer against an employee for engaging in legally protected activities; such as, filing a complaint or participating in an investigation.
Discrimination: Unfair treatment based on race, color, religion, sex (including pregnancy, sexual orientation, or gender identity), national origin, age (40 or older), disability, or genetic information.
These protections apply to both private and public employers and are outlined under the Fair Employment and Housing Act (FEHA).
At SANFORD A. KASSEL, A Professional Law Corporation, we have a comprehensive understanding of these laws and will give you the information you need to make informed decisions about your case.
Intersection of Severance Agreements and Personal Injury Claims
California has a specific set of labor codes to protect employees from unfair or misleading severance provisions, especially regarding Personal Injury. Illegal severance terms often limit or completely waive an employee’s rights to pursue compensation for injuries suffered while on the job or related to their job duties. Under California’s Labor Code, employees cannot waive their right to seek compensation for workplace injuries, regardless of what may be included in a severance package.
Personal injury claims are unique because they fall under a distinct area of law separate from standaard employment claims. If your employer includes a clause in a Severance Agreement that requires you, the employee, to waive potential personal injury claims, this may violate labor laws, prohibiting the restriction on claims for workplace injuries or unpaid wages. You have the right to pursue Workers’ Compensation claims–any document attempting to block you from doing so, would likely be unlawful and invalid.
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Rebecca Spencer…. “Sandy and Gavin were extremely helpful and responsive with my case. I would highly recommend them for any issues regarding employment law.”
Rajaa Ahmadie…. “Gavin Kassel is a great attorney.. Did work hard for me.. Always answered my concerns and he is very focused. I highly recommend him. The important part–he is always accessible.
Lauren Klein…. “Sandy and Gavin (along with the office staff) were a pleasure to work with. They took good care of me and explained everything before we took each step to ensure that the decisions were mine but I was making them fully informed.”
Athul Raj…. “Gavin and Sandy did better than I even expected for me on my case. Very professional, helpful, and knowledgeable attorneys. You are in great hands with them!”
Anne Mitchell…. “I interviewed several attorneys when I was dealing with an employment law situation that I needed resolved. After meeting with Gavin and Sandy, I knew they were the right law firm for the job. I’m extremely happy with the outcome of my case! They are honest, professional, hard-working, always kept me updated on what was happening, easy to talk to, and very tough litigators. I highly recommend their office.
Sara Bavle…. “Sanford Kassel has been so much help for me. I’ve never had someone fight so hard for me in my life. I’m lucky to have found him. I definitely recommend him to anyone who needs help. Thank you Mr. Kassel, you have no idea how much I appreciate everything you’ve done and continue to do for me.”
Benjamin Mazal…. “Excellent, sincere service. The attorneys and staff are helpful, efficient and reassuring. I recommend their services to anyone in need of legal assistance. They will definitely make your experience as smooth as possible. Simply the best!”
Matt Brown…. “Absolutely the best law firm in the Inland Empire! I highly recommend Sanford Kassel because of his outstanding service and commitment to meeting his client’s needs. He and his team are proven winners and they will fight for you.”
Selina Kerr…. “Such amazing people. I had a great outcome thanks to Gavin handling. He was able to advise me on the best way to handle so my job was protected until everything was resolved. I was able to get a hold of him quickly when had any questions and he was patient with me even though I was a little rattled with my work situation. Extremely grateful.”
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WHAT OUR CLIENTS SAY ABOUT US…
Rebecca Spencer…. “Sandy and Gavin were extremely helpful and responsive with my case. I would highly recommend them for any issues regarding employment law.”
Rajaa Ahmadie…. “Gavin Kassel is a great attorney.. Did work hard for me.. Always answered my concerns and he is very focused. I highly recommend him. The important part–he is always accessible.
Lauren Klein…. “Sandy and Gavin (along with the office staff) were a pleasure to work with. They took good care of me and explained everything before we took each step to ensure that the decisions were mine but I was making them fully informed.”
Athul Raj…. “Gavin and Sandy did better than I even expected for me on my case. Very professional, helpful, and knowledgeable attorneys. You are in great hands with them!”
Anne Mitchell…. “I interviewed several attorneys when I was dealing with an employment law situation that I needed resolved. After meeting with Gavin and Sandy, I knew they were the right law firm for the job. I’m extremely happy with the outcome of my case! They are honest, professional, hard-working, always kept me updated on what was happening, easy to talk to, and very tough litigators. I highly recommend their office.
Sara Bavle…. “Sanford Kassel has been so much help for me. I’ve never had someone fight so hard for me in my life. I’m lucky to have found him. I definitely recommend him to anyone who needs help. Thank you Mr. Kassel, you have no idea how much I appreciate everything you’ve done and continue to do for me.”
Benjamin Mazal…. “Excellent, sincere service. The attorneys and staff are helpful, efficient and reassuring. I recommend their services to anyone in need of legal assistance. They will definitely make your experience as smooth as possible. Simply the best!”
Matt Brown…. “Absolutely the best law firm in the Inland Empire! I highly recommend Sanford Kassel because of his outstanding service and commitment to meeting his client’s needs. He and his team are proven winners and they will fight for you.”
Selina Kerr…. “Such amazing people. I had a great outcome thanks to Gavin handling. He was able to advise me on the best way to handle so my job was protected until everything was resolved. I was able to get a hold of him quickly when had any questions and he was patient with me even though I was a little rattled with my work situation. Extremely grateful.”
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October 20, 2025
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Why You Need A Severance Agreement Lawyer
Severance Agreements are more than just parting terms between an employer and employee; they are a crucial, legally-binding document that can significantly impact your future employment prospects and financial security. The skilled Severance Agreement Lawyers, at SANFORD A. KASSEL, A Professional Law Corporation, ensure that your rights are protected and that you receive the most favorable terms possible. We meticulously review every clause to safeguard against potential pitfalls and negotiate terms that reflect your best interests.
Sanford and Gavin Kassel are part of a legacy of lawyers who have adhered to principles of integrity and compassion while representing their clients. Recognizing the ongoing evolution of the law, they emphasize the importance of taking care of one another. The Kassels combine care and compassion with experience, innovation, resourcefulness, and tenacity. This unique approach to legal practice has spanned more than 70 years, through three generations, dating back to 1957 when Philip A. Kassel opened his first law practice in San Bernardino, California. We know the law and can advise you of your best legal course of action.
Before you sign a Severance Agreement, protect your legal rights and Contact the offices of SANFORD A. KASSEL, A Professional Law Corporation, for a FREE consultation to discuss your options with our experienced Employment Law Attorneys.