How to Negotiate Severance in California’s Tech Industry

How to Negotiate a Severance Agreement in California’s Technology Industry

Severance agreements are nothing new in California’s technology industry, but they’re more common than ever, especially in the wake of mass restructurings, reorganizations, and “strategic realignments.” If you’ve just received a California tech layoff severance agreement, you’re not alone. These deals increasingly show up in situations that have nothing to do with job performance. Companies are cutting loose employees who’ve been hitting their numbers and doing their jobs well. The pink slip is followed by a severance package and an unspoken expectation: sign it quickly and quietly.

But Silicon Valley severance agreements aren’t built like the standard packages you’ll find in other industries. They come loaded with equity provisions, stock option deadlines, non‑compete language (even in California, where most are unenforceable), invention assignments, and sweeping confidentiality clauses that can reach far into your future career. Agreeing to these terms without understanding their impact can cost you money, limit your job options, and even hand over ownership of what you create next.

I’m Matt Ruggles, and I’ve been practicing employment law in California for over 30 years. This isn’t a standard “how to negotiate severance” guide – you can find those elsewhere on my site. This blog is about the traps and leverage points that are unique to technology industry severance offers, especially in software sales and high‑tech careers built around intellectual property. Employers here don’t just want you to sign away your right to sue; they want to lock down your stock options, control your inventions, and muzzle you with confidentiality clauses that can follow you for years. I’ll show you what these terms really mean, why they matter, and how to spot the ones you should never accept without a fight.

Key Terms in a California Tech Layoff Severance Agreement

Before diving into the unique issues that show up in technology and Silicon Valley severance agreements, like equity, IP, and post-termination restrictions, here’s a quick primer on the standard terms almost every executive agreement includes. These are the baseline provisions you need to understand before negotiating anything industry-specific:

Release of Claims

• The core of the agreement: you’re being paid to give up your right to sue over any known or unknown (potential) claim.
• Includes all potential claims related to your employment, including claims for wrongful termination, harassment, retaliation or any other claim under California law.
• Typically includes a waiver of all unknown claims under California Civil Code § 1542.
• Important:  If a claim for unpaid wages, commissions, or earned bonuses is not “disputed,” the claim cannot be waived under California law.  However, whether the wages are “undisputed” often is not clear and difficult to determine.

Confidentiality & Non-Disparagement

• Generally, restrictions discussion or exchange of information with anyone regarding the severance terms (most importantly, the amount of the payment) or even the fact that it exists.
• Non-disparagement clauses may cover any negative statement, public or private, although the employer’s primary concern is public comments on social media, the internet, etc.
• Non-disparagement clauses are not always unilateral and can be mutual if framed correctly.  Because the company cannot control what every single employee says about anything, a non-disparagement clause in a severance agreement that restricts the employer’s comments must specific the particular people that are restricted from saying anything – normally, the relevant stake holders at the company.

COBRA & Health Coverage

• Employer-sponsored healthcare benefits normally expire at the end of the month in which you are terminated.  As a result, it’s generally preferable, from the terminated employee’s perspective, to be terminated at the beginning of the calendar month rather than close to the end of the month.

• You can keep your health plan under COBRA, but it gets expensive fast.
• Companies sometimes subsidize COBRA as part of a severance package.  Normally the COBRA benefit goes from a few months to a full year, rarely any higher.  Two to three months is not unusual.  Cobra is a monthly benefit, so normally is negotiated as “months of COBRA reimbursement.”  Knowing that number is important if you plan to accelerate the COBRA payment as part of the overall severance package negotiation.

Bonus & Commission Payouts

• If earned before termination, these are considered eared wages, not part of the severance.
• Employers often try to lump them in, don’t let them.
• Review the Commission Plan to determine when and under what circumstances employer can exercise a “clawback” of “advanced commissions.”  Employers very frequently do not handle payment of final wages and commissions correctly, completely or lawfully.
• If written bonus includes retention requirement (i.e. employee must be employed on date bonus is paid in order to be eligible for bonus payment), request a pro-rata share of the anticipated bonus, especially if employee has done everything necessary to trigger bonus and only is waiting for passage of time.

Reason for Termination

• Impacts unemployment eligibility and your professional story.
• Make sure the agreement doesn’t mischaracterize your departure.
• If it was a layoff or not-for-cause termination, the language should say so.

Post-Termination Cooperation

• Often obligates you to assist the company after you leave.
• Define the scope, time limits, compensation, and reimbursement.
• Include indemnification if your cooperation involves legal risk.

Return of Company Property

• Standard clause. Don’t leave any loose ends, they’ll use it as an excuse to delay payment. Generally speaking, do not delete any company-related software, information or documents from your work laptop before it is returned.  Recognize that the employer will scan the computer to determine what information was installed or deleted from the computer.

Attorney’s Fees

• One-sided fee provisions create extra risk and exposure.
• Ordinarily, negotiation of an attorney’s fees provision requires assistance of a qualified attorney.

Neutral Reference

• Protects your reputation.
• Standard version limits the company to confirming Job Title and Date of Employment.
• Ask for it if it’s not included.

Choice of Law

• Always push for California law because it provides stronger employee protections.
• Don’t accept a jurisdiction that undercuts your rights; in CA, foreign jurisdiction choice-of-law provisions are prohibited.

Integration Clause

• Anything not written in the agreement doesn’t count.
• Verbal promises and side emails are unenforceable.

ADEA/OWBPA Waiver (If You’re 40+)

• You get 21 days to review, and 7 days to revoke after signing.
• Required if the severance includes an age discrimination waiver.
• In group layoffs, you’re entitled to additional disclosures regarding statistics of the employees adversely affected by the layoff.

Outplacement & Job Search Support

• Can include coaching, recruiter intros, even use of your title/email for optics.
• Get details on timing, access, and what’s actually offered.

No Waiver of Compelled Testimony

• You still have the right to testify truthfully if subpoenaed.
• The agreement can’t silence you in legal proceedings.

If you want to gain more in-depth knowledge on these subjects, read my in-depth blog: How to Negotiate Executive Severance Agreement Terms.

Common Pitfalls in California Tech Layoff Severance Agreements

Now that we’ve covered the standard terms found in most severance agreements, let’s look at the clauses that are unique to California’s tech sector. These aren’t boilerplate, they’re tailored to control your equity, your intellectual property, and sometimes your next move. If you’re coming out of a role in software, engineering, product, or anything IP-heavy, these are the terms you can’t afford to overlook.

Arbitration Clauses in California Tech Severance Agreements

If you’re a Silicon Valley executive staring down a severance agreement, chances are your original employment contract included an arbitration clause. Don’t gloss over it. Arbitration isn’t just legal fine print, it’s the private court where any future dispute gets decided. And it has serious implications for your leverage, your timeline, and your legal strategy.

So, what is arbitration?

It’s a private, binding dispute resolution process that takes the place of a public courtroom. Instead of a judge and jury, you get a single arbitrator, usually a retired judge or senior lawyer, who hears your case and issues a final ruling. There’s no appeal.

Why employers love it:

Arbitration keeps disputes out of the public eye, reduces the risk of runaway jury verdicts, and usually shortens the litigation timeline. It also limits discovery, which can work in the employer’s favor. That’s why tech companies bake these clauses into nearly every executive employment agreement they draft.

Initiating arbitration:

You typically start by sending a formal demand letter, often through your lawyer, to the arbitration forum specified in your agreement (usually JAMS or AAA). That triggers a process of selecting an arbitrator and setting dates. If your employer is refusing to pay what’s owed under the severance or commission agreement, arbitration may be your only venue for relief.

Note: Even if you’re bound by an arbitration agreement, you may not be stuck there forever. If your former employer fails to pay the arbitration fees on time, you might have the right to take your case to court instead. To understand how this works, read my blog: Employers’ Failure to Pay Arbitration Fees Can Let Employees Take Case to Court.

How long does it take?

It’s faster than court, but not by much. From demand to hearing, expect 9 to 14 months depending on how aggressive the parties are and the forum’s backlog. Discovery is more limited than in civil court, but not minimal. You’ll likely still face document production, depositions, and pre-hearing motions.

What kinds of claims can you bring?

Arbitration doesn’t water down your rights under California law. You can still bring claims for:

•  Wrongful termination
  • Unpaid wages, bonuses, and commissions
  • Breach of contract
  • Retaliation under California Labor Code § 1102.5
  • Discrimination, harassment, and retaliation under FEHA

However, the rules are different: no jury, no appeal, and limited rights to discovery. The question becomes whether you want to fight in that arena at all or use the arbitration clause as a negotiation tool.

Why this matters at severance time:

Many executives have valuable claims that could be pursued in arbitration, but they waive those rights if they sign the severance agreement. And most arbitration clauses require each party to bear their own legal fees unless a statute (like FEHA) says otherwise. If you’re being pushed out unfairly, and you think you might have a legal claim, the arbitration clause becomes a key pressure point in negotiating a better exit.

To understand how potential legal claims can give you leverage in severance negotiations, read my blog: How To Use Leverage in Severance Negotiation.

For guidance on how to calculate a reasonable severance pay demand based on your position, tenure, and leverage, read my blog: Severance Pay Demand: How to Calculate Effectively.

Stock & Equity

If you received stock options, RSUs, or any form of equity compensation as part of your employment, your severance agreement isn’t complete until you understand how each component is affected. In the tech world, equity is often the most valuable part of the deal and the first thing employers try to quietly walk away with. Here’s what to look at:

What Happens to Your Stock Options After a California Technology Industry Termination?

Vested Stock Options

What happens to your already-vested options when you’re terminated? Most companies give you a fixed period, often 90 days, to exercise them. Miss the window, and they expire. That could mean walking away from tens or hundreds of thousands of dollars.
Make sure your severance agreement clearly confirms:

• The number of vested shares as of your termination date
• The deadline to exercise them
• Whether the company considers your termination date to be your last working day or the end of the severance period

If you’re not sure, get it in writing. Verbal assurances don’t count, and vague HR statements won’t save you if the equity plan says otherwise.

Unvested Equity

Severance packages almost never include continued vesting unless specifically negotiated. Once you’re terminated, unvested shares are usually forfeited.
If you’re staying on payroll for a transition period or “paid administrative leave,” you need explicit language stating that vesting continues during that time. Without that clause, you lose it all.

RSUs and Performance Shares

Restricted Stock Units (RSUs) and performance shares often come with longer vesting schedules and milestone-based triggers. If you’re laid off mid-cycle, you may forfeit unvested RSUs or be disqualified from performance-based awards.
Ask the company:

• Are in-progress performance periods prorated or cancelled?
• Do severance payments have any effect on RSU vesting?
• Is there any discretionary payout for partial achievement?

Don’t assume a partial payout will be offered. If it’s not in writing, you’re not getting it.

Post-Termination Vesting

In rare cases, companies allow continued vesting after termination, especially if severance payments are structured as ongoing salary continuation. If that’s the case, make sure:

• The severance agreement spells out which grants continue vesting
• You understand whether equity-based vesting continues or only base salary/benefits
• You’re not waiving future vesting rights elsewhere in the document

Companies won’t offer this unless pushed. But if you’re in a high-impact role or close to a cliff date, it’s worth negotiating.

Acceleration Clauses

Acceleration means that some or all of your unvested equity becomes vested immediately. It’s typically available in two situations:

1. Single-trigger acceleration: Vesting accelerates upon involuntary termination without cause
2. Double-trigger acceleration: Vesting accelerates if you’re terminated in connection with a change in control (e.g., company acquisition)

Check your original equity grant documents. Severance agreements often include language that overrides or waives acceleration rights, so read carefully. If you had a change-in-control clause, don’t give it up for nothing.

Clawback Provisions

These are contractual terms that allow the company to cancel or recover previously awarded equity if you violate certain obligations post-employment.
Common triggers include:

• Breach of confidentiality or non-disparagement
• Competing with the company
• Failing to return company property
• “Cause” determinations made after the fact

Watch for vague standards like “acts detrimental to the company” or “failure to cooperate.” If the clawback language lacks specifics or due process protections, you’re giving them broad discretion to take back vested equity.

Repurchase Rights

Some companies, especially startups, include provisions allowing them to buy back your shares after you leave, often at the original grant price, not fair market value.
Key questions:

• Can the company force you to sell your shares after termination?
• If so, at what price?
• Under what conditions can repurchase rights be triggered? Voluntary resignation, termination for cause, or any separation?

If the answer isn’t in your severance agreement, look at your original equity grant paperwork. Repurchase rights often hide there, and they can strip real value out of your exit.

If equity was part of your compensation, you need to treat it as a core part of your severance negotiation. That means reading the severance agreement, the original stock plan, the grant notices, and any related documents side by side. If anything is unclear, assume it’s written that way on purpose. Ask questions. Push back. And don’t sign until you know exactly what you’re giving up and what you still have a right to claim.

How Paid Administrative Leave and Delayed Termination Dates Affect Your Severance

Not all terminations are clean breaks. In the tech industry, especially at the executive or director level, some companies use a tactic called “paid administrative leave” or delayed termination to quietly shift the balance of power in their favor. If you’re not paying attention, it can cost you equity, impact your job search, and delay your unemployment benefits.

What is paid administrative leave?

It’s when your employer tells you that you’re done working but keeps you on payroll for a period of time, usually with restrictions. You’re still technically employed, but you’re not allowed to come into the office, contact clients, or work for competitors. In some cases, they may not even want you logging into your company email. You’re on ice, but still on the books.

Why companies use it:

• To delay or prevent stock from vesting. If a large equity grant is set to vest at the end of a quarter or year, keeping you technically employed but inactive lets them claim you didn’t “complete the performance period.”
• To restrict your reemployment options. Even if non-competes are unenforceable in California, being on paid administrative leave can make potential employers wary, especially if your current employer signals that you’re still under obligation.
• To postpone your unemployment eligibility. If you’re still officially employed, you probably can’t collect unemployment. And depending on how your departure is reported, your eligibility could be delayed even after the leave ends.
• To minimize reputational risk. It lets companies say you “resigned” or were “transitioned,” softening the PR around a termination, especially in executive-level layoffs.

Here’s where this becomes a problem:
Your severance agreement might describe this period in vague terms, something like “continued employment through X date” or “employment shall terminate upon completion of transition period.” That language sounds harmless, but it matters.

If you’re trying to:

• Trigger equity acceleration
• Exercise vested options within a specific timeframe
• Qualify for unemployment
• Or start a new job without conflict

You need to know the exact date your employment ends. And you need it in writing.

Bottom line:

If your severance includes a garden leave provision or a delayed termination date, read it closely. Push for clarity:

• What’s your final date of employment?
• Will you remain on payroll? If so, for how long and with what restrictions?
• Does vesting continue during that time?
• Can you work elsewhere or start interviewing?

Paid administrative leave isn’t always bad. It can offer income while you job hunt or position you to complete a vesting milestone. But if you don’t understand it or if the terms are written to benefit the company and not you, it can quietly erode your negotiating leverage, your cashflow, and your next opportunity.

Don’t assume paid administrative leave is a gift. It’s often a tool, and you’re not the one holding it.

Confidentiality and PIIA Obligations After a California Technology Industry Termination

Let’s clear up a common misconception: just because you’ve been laid off, or even pushed out, it doesn’t mean you’re off the hook when it comes to protecting your former employer’s confidential or proprietary information. In fact, those obligations almost always survive your termination, no matter the reason. Whether you quit, got fired, were laid off in a reorg, or signed a severance agreement, the confidentiality provisions you agreed to at the start of your job remain in full force.

If you signed a Proprietary Information and Inventions Agreement (PIIA) or any document with “confidentiality,” “trade secrets,” or “intellectual property” in the title, you’re still bound by it. California law honors these agreements, especially when they involve protecting legitimate trade secrets such as source code, customer lists, pricing models, product roadmaps, technical architecture, and anything else that gives the company a competitive edge and isn’t publicly available.

Here’s what that means in practical terms:

• You can’t download files and bring them to your next job.
• You can’t rebuild the same product just because you helped create it.
• You can’t use inside information to poach clients or hire your old team.

It doesn’t matter that you didn’t sign a severance agreement. It doesn’t matter if your employer treated you unfairly. The duty to protect confidential information sticks with you, and violating it can get you sued for misappropriation under the California Uniform Trade Secrets Act (CUTSA).

Where this gets tricky is in startups and tech companies where the lines between public knowledge, individual contributions, and company IP are blurry. You may think, “This was my idea,” or “I built this on my own time.” That may be true, but if you signed a broad confidentiality agreement, the company may still claim ownership, especially if it was even loosely related to your work.

Bottom line: read what you signed when you joined. And if you’re unsure what’s enforceable and what isn’t, don’t guess. The penalties for getting it wrong can be steep and they don’t care whether you still work there or not.

Who Owns Your IP After a California Technology Industry Termination?

If you’re in tech, you already know that ideas are currency. But what many executives and engineers don’t realize is this: if you create something while employed, whether it’s code, a prototype, an algorithm, or a product concept, it almost certainly belongs to your employer. That’s not just company policy. It’s California law.

Under California Labor Code § 2870, anything you invent on your own time, without using your employer’s equipment, supplies, facilities, or trade secrets, belongs to you, unless it relates to your employer’s business or actual or anticipated research and development. And here’s the catch: if it does relate to the company’s business, they can claim it even if you built it at home, on your own laptop, at 2:00 a.m.

So how do you protect something you invented before you joined the company or something totally unrelated to their business? You’re supposed to identify it in writing when you’re hired, usually in an attachment to your Proprietary Information and Inventions Agreement (PIIA). Most people skip this step, or the company doesn’t bother to explain it. That’s a problem, because once you’ve signed that PIIA without listing your prior inventions, you’ve arguably just assigned your future employer the rights to all of it.

Example 1:
Let’s say you developed a smart home energy app in grad school and later go to work for a company focused on AI-assisted HVAC systems. You never disclosed the app when hired. If you later try to commercialize or improve that app while employed, the company could argue it’s theirs, even if you worked on it independently because it’s in their general line of business.

Example 2:
You’re a back-end engineer at a fintech startup, and on the weekends, you develop a stock-trading bot for your personal use. You use no company code, hardware, or data. But because your employer also deals in algorithmic financial tools, your weekend project may still fall within their “anticipated R&D,” giving them a basis to assert ownership.

If you’re bringing intellectual property into a new job, or developing ideas on the side, get real clarity at the outset. Disclose your inventions in writing. Make sure the agreement includes a Section 2870 disclosure attachment. And if you’re about to sign a severance agreement, be cautious of language reaffirming prior invention assignments or expanding post-termination IP obligations. Those clauses can claw more than you realize.

When it comes to ownership of ideas in California, silence is not your friend.

Non-Compete and Non-Solicit Clauses in California Severance Agreements

If your severance agreement, or your original employment contract, includes a non-compete clause, take a deep breath. In California, non-compete agreements are almost always unenforceable, and employers know it. But that doesn’t stop them from trying.

California has one of the strongest public policies in the country against non-competes. Business and Professions Code § 16600 makes it clear: any contract that restrains someone from engaging in a lawful profession, trade, or business is void. That includes language that tries to stop you from joining a competitor, starting your own company, or doing work in the same field.

That’s the rule. But, as always, there are a few exceptions you need to know about.

The Exceptions (When Non-Competes Are Enforceable in California)

Exception #1: Sale of a Business (Bus. & Prof. Code §§ 16601–16602):

If you sell your ownership interest in a business, like shares in a corporation or membership in an LLC, you can be restricted from competing with the buyer in a defined geographic area for a limited time. This is to protect the value of what the buyer just paid for.

Exception #2: Dissolution of a Partnership (Bus. & Prof. Code § 16602):

When a partnership dissolves, partners can agree not to compete in a specific geographic region where the partnership previously did business.

Exception #3: Dissolution of an LLC (Bus. & Prof. Code § 16602.5):

Similar to partnerships, if you’re a member of a dissolved LLC, you can agree to stay out of the same line of business for a limited time and area.

What Employers Still Try to Do (And Why It Matters)

Even though non-competes are unenforceable for regular employees, some companies (especially in tech) sneak them into employment or severance agreements anyway, hoping you’ll be too intimidated to push back. Some try to enforce them out of state. Others call them something else: “non-solicitation,” “garden leave,” “IP protection,” or “client transition period.”

California law doesn’t care what you call it. If the effect is to block you from working in your chosen field, it’s illegal and it’s void.

Just because a clause is unenforceable doesn’t mean it’s harmless. Employers may still threaten enforcement, stall reference checks, or scare off future employers. That’s why every non-compete, non-solicitation, or restriction clause in your severance or employment agreement needs to be reviewed, challenged, or negotiated on the front end.

Outplacement and Job Search Support in California Tech Severance Packages

Buried in the middle of many severance agreements, especially in tech and upper-level roles, is a section offering “vocational assistance” or “outplacement support.” It sounds like fluff. It’s not. If done right, this benefit can be valuable, especially if your departure was sudden, involuntary, or comes with reputational baggage.

What is Vocational Assistance?

Vocational assistance is a broad term for services meant to help you find your next role. That can mean career coaching, résumé revision, LinkedIn optimization, introductions to recruiters, or even access to office space, administrative support, or continued use of your old job title and company email for optics during the transition.

Sometimes this benefit is provided directly by the employer; more often, it’s outsourced to a third-party outplacement firm. The quality varies and some are useless slide decks and webinars, while others offer real one-on-one coaching and recruiter access.

Why Vocational Assistance matters:

In the tech world, especially in startups or niche roles, how and when you reenter the market can shape the next phase of your career. If your exit was rocky, or if you’re subject to a garden-variety whisper campaign, having structured, strategic job search support can help reset the narrative. This isn’t just about getting a job; it’s about managing your exit optics and controlling your next move.

What to look for or ask for:

• Duration: How long does the assistance last: 30 days, 60 days, or 6 months?
• Scope: Is it résumé help only, or does it include recruiter referrals, interview prep, personal branding?
• Provider: Who’s delivering the service—a no-name vendor, or someone with real industry credibility?
• Optics Tools: Will they let you use your old title or company email temporarily? That can be valuable if you’re managing a transition quietly.
• Extension Triggers: Can you extend the service if you haven’t landed yet? Sometimes this can be negotiated.

Note: If it’s not already in your severance offer, ask for it. Especially in Silicon Valley, many companies will throw it in if asked because it’s low cost for them and high value for you. Just make sure it’s clearly spelled out in the agreement: who provides it, what they’re providing, and for how long. Don’t accept vague language like “reasonable assistance” or “support upon request.”

Post-termination vocational assistance isn’t just a courtesy, it’s leverage. If you’ve just lost your job, use the opportunity to get tools that help you land the next one faster, smarter, and on your terms.

What Tech Workers Over 40 Should Know About ADEA and OWBPA Waivers

21-Day Review and 7-Day Revocation Rules

If you’re 40 or older and being laid off from a tech company, your severance agreement almost certainly includes a waiver of rights under the Age Discrimination in Employment Act (ADEA). That waiver is governed by a federal law called the Older Workers Benefit Protection Act (OWBPA) and it comes with a strict set of rules your employer must follow.

Here’s what to look for:

1. 21 Days to Consider
   You must be given at least 21 days to review the severance agreement. This isn’t optional, and it applies even if the employer tells you to “get it back to us by Friday.” If they’re pressuring you to sign before the 21 days are up, that’s a red flag.
2. 7 Days to Revoke
   After you sign, you have 7 days to revoke your acceptance, no explanation needed. If you change your mind during that period, you can walk away, and the signature becomes void.
3. Clear, Understandable Language
   The release of your ADEA claims must be written in plain English, not dense legalese. If it’s convoluted or buried in boilerplate, that’s a problem.
4. Voluntary and Knowing
   You can’t be tricked, coerced, or misled into signing. If the agreement doesn’t meet all of the OWBPA’s requirements, the waiver of your age discrimination claims may not be enforceable.
5. Group Layoffs Trigger Extra Rules
   If you’re part of a group layoff, often the case in tech reorganizations, the employer must also give you:
   • 45 days to review the agreement (instead of 21)
   • A list of job titles and ages of both the employees who were laid off and those who were not, so you can assess whether age was a factor

Why ADEA Compliance Matters for California Tech Employees

If you’re over 40, and you suspect your age played a role in the layoff, or if you’re simply being asked to waive your ADEA rights, you need to slow down and assess your leverage. Tech employers are often in a hurry to wrap things up, especially during mass layoffs. But you’re entitled to your full review period, and to advice from an employment lawyer who can help you evaluate the fairness of the offer and the legal rights you’re being asked to sign away.

How Group Layoffs Affect Severance Negotiations in California Tech Jobs

If you’re part of a group layoff, negotiating a better severance agreement is usually more difficult and that’s by design. Employers conducting mass layoffs, especially in the tech sector, typically rely on standardized severance packages to reduce liability, keep costs predictable, and avoid favoritism. That means you’re probably being handed a take-it-or-leave-it offer and any deviation often requires exceptional circumstances.

Here’s why negotiation is more limited in a group layoff:

Reason #1: Uniformity Is the Employer’s Shield

Companies want to show that everyone was treated equally to avoid discrimination claims. If they give you more, they may have to justify why they didn’t offer the same to everyone else. So they usually won’t.

Reason #2: Packages Are Pre-Approved by Legal

The severance terms you’re offered were likely pre-cleared by in-house counsel or outside employment lawyers. These agreements are often distributed in bulk, with no intent to individualize the terms.

Reason #3: Risk Aversion Drives the Process

Tech companies facing a large RIF (reduction in force) are managing legal risk and public relations fallout. They don’t want to create outliers that could undermine their position if claims arise.

Reason #4: Negotiation Still Possible, but Rare

If you have a strong potential claim, for example, whistleblower retaliation, recent protected leave, or evidence of age, race, or gender discrimination, you may have leverage to push for a better package. But you need to bring that to the table clearly and strategically. Without that, the door will likely stay closed.

Reason #5: Executive-Level Exceptions

If you’re in a leadership role, or you have equity, stock options, or IP ownership issues at stake, there may be room to negotiate on those terms. But even then, you’re often negotiating in the margins.

For a more in-depth look at whether it’s worth negotiating your severance in a group layoff, read Should I Attempt to Negotiate My Severance?

Talk to a Lawyer Before Signing Your California Tech Severance Agreement

If you’re in a group layoff, your best move is to review the severance agreement closely, especially the waiver of legal claims, confidentiality terms, and release of stock or equity. Then ask yourself: Do I have any leverage the company hasn’t accounted for?

If the answer is yes, or even maybe, talk to an employment lawyer before you sign. Because once you sign, your legal claims are likely gone for good.

Contact the Ruggles Law Firm at 916-758-8058 to Evaluate Your Potential Lawsuit

Matt Ruggles has a thorough understanding of California employment laws and decades of practical experience litigating employment law claims in California state and federal courts. Using all of his knowledge and experience, Matt and his team can quickly evaluate your potential claim and give you realistic advice on what you can expect if you sue your former employer.

Contact the Ruggles Law Firm at 916-758-8058 for a free, no-obligation evaluation.

Blog posts are not legal advice and are for information purposes only. Contact the Ruggles Law Firm for consideration of your individual circumstances.