If you’ve just been handed a severance agreement, there’s a good chance HR made it sound like you need to sign quickly or risk losing everything. Maybe they called it “standard.” Maybe they warned you there’s a deadline. Maybe they even told you it’s a non-negotiable severance in California, as if there’s no room to push back.
Now you’re stuck wondering can you negotiate severance in California or whether a so-called ‘take-it-or-leave-it severance’ offer is actually final.
I’m Matt Ruggles. I’ve practiced employment law in California for over 30 years, and I’ve negotiated thousands of severance agreements across nearly every industry, from a few thousand dollars to multi-million dollar executive packages. I’ve seen just about every tactic employers use to create panic, shut down questions, and pressure employees into taking less than they should.
If you want to understand how to push past the first offer and unlock hidden value in your severance deal, check out my guide: How to Maximize Your Severance Offer in California
After talking with so many California employees over the years, I noticed the same misunderstandings coming up again and again. People walk into severance situations already believing things that simply aren’t true. I call these “myths” because they sound convincing in the moment but almost always fall apart once you understand how severance negotiations really work.
The purpose of this blog is to walk you through the most common myths that cause employees to leave money on the table and to help you understand why your severance agreement may be more negotiable than you think.
If a severance offer is sitting in front of you right now, call the Ruggles Law Firm at (916) 758-8058 before you sign anything you might regret.
Myth #1: “This Severance Agreement Is Standard and Everyone in California Gets the Same Thing.”
Behind the Myth: Why Employers Call Severance Agreements “Standard” in California
- Employers claim it is “standard” to make you feel like negotiating would be pointless or unfair.
- There is no legally recognized “standard” severance package in California.
- Severance terms are rarely uniform; they differ based on your job title, how valuable you were to the company, how nervous they are about potential legal claims, and how much leverage you unknowingly hold.
Reality: There Is No Legally “Standard” Severance Agreement in California
California law does not require employers to offer severance at all. That means every severance package is discretionary, and if something is discretionary, it can also be negotiated. When an employer offers severance, it is typically because they want something valuable from you, usually a legal release so you cannot sue them. If your signature benefits them, then your leverage is already on the table whether they admit it or not.
Matt’s Legal Observation: A “Standard” Severance Still Involves Negotiation
“If a severance agreement were truly ‘standard,’ it wouldn’t require your signature. The moment they ask you to sign a release of legal claims, it becomes a negotiation, whether they like it or not.”
If you’re trying to decode legal jargon and understand what each provision actually does, review my blog: All Common Severance Agreement Clauses Explained
Take control of your severance negotiation now by calling Ruggles Law Firm at (916) 758-8058 to find out whether your agreement is really “non-negotiable.”
Myth #2: “You Must Sign a Severance Agreement Within 24 or 48 Hours in California.”
Behind the Myth: Why Employers Create Urgency in Severance Offers
- Employers often set extremely tight deadlines to trigger anxiety and force employees to react emotionally rather than strategically.
- When employees feel rushed, they are less likely to consult an employment lawyer or fully understand what legal rights they may be giving up.
- A common mistake is waiting until the final day of the deadline before seeking help. By then, there is little time to evaluate legal claims or prepare a negotiation strategy.
- Employees over 40 are legally entitled to 21 days to review a severance agreement that includes a release of age discrimination claims under federal law, but waiting until the end of that period without taking action can work against you.
Reality: You Should Not Sign in Panic, but You Also Should Not Wait Until the Last Minute
You do not have to sign a severance agreement within 24 or 48 hours. However, waiting until the deadline approaches can create unnecessary pressure and reduce your ability to negotiate effectively. The best approach is to take initiative immediately, ideally on the same day or the next day after receiving the agreement. This gives you time to consult a California employment lawyer and plan a response without rushing.
Although it is often possible to request additional time, asking for a deadline extension may signal uncertainty to your employer and suggest that you are struggling to decide. Taking early, decisive action conveys that you are informed and serious about evaluating the offer rather than panicking or hesitating.
Matt’s Legal Observation: Power Comes from Early Evaluation, Not from Racing the Deadline
“If they are rushing you to sign, it usually means they are worried you will learn what you are actually entitled to. You do not have to sign in panic, but you also should not wait until the deadline is about to expire. Leverage comes from acting early and with clarity, not from scrambling at the last moment.”
To see how timing, leverage, and a strategic legal response can dramatically change the outcome of a severance offer, read my post: How to Negotiate an Executive Severance Package Case Study.
Myth #3: “The Severance Amount Is Final and Cannot Be Negotiated in California.”
Behind the Myth: Why Employers Claim Severance Amounts Are Final
- The first offer is rarely the employer’s best number. It’s just the floor they hope you’ll accept without asking questions.
- Severance amounts often have more to do with how much legal risk the employer thinks you pose than with how long you worked there.
- Most employers already expect some negotiation and often build a cushion into their initial offer. They just won’t admit it.
Reality: California Employees Can Negotiate Higher Severance Compensation
In reality, when employees ask ‘can you negotiate severance in California?’ the answer is almost always yes because employers rarely offer their best number upfront.
Negotiation is not just about getting a bigger check. It can also include improving payment timing, extending salary continuation, covering COBRA premiums, narrowing or removing non-compete or non-solicitation clauses, softening non-disparagement language, and securing a positive or neutral job reference. A skilled negotiation can significantly increase not just your payout but also your long-term employment prospects and peace of mind.
Matt’s Legal Observation: Every Dollar in a Severance Offer Represents Leverage
“Every dollar in a severance package represents what your employer thinks your silence and cooperation are worth. Don’t sell that short. That is one reason a so-called non-negotiable severance in California is a myth.”
When an employer offers you severance, they are not paying you for past service. The employer is only paying to eliminate future legal risk. Most severance agreements require you to release all claims under California law, including rights you may have under the Fair Employment and Housing Act (FEHA) or wage protections enforced by the California Labor Commissioner.
To understand why wrongful termination claims are a serious threat to employers and often create powerful leverage in severance negotiations, read my blog: Wrongful Termination Lawsuits Under FEHA: A Costly Gamble for Employers.
Why Identifying Legal Claims Can Increase the Value of a “Non-Negotiable” Severance in California
Here’s the problem: most employees don’t actually know whether they have a viable claim when they’re asked to sign. Claims involving retaliation, discrimination, harassment, wrongful termination, misclassification, unpaid wages, or failure to provide reasonable accommodations under the FEHA are not always obvious without legal analysis. But if any of these apply, your severance value often goes up because your employer now has something to lose.
That is why experienced employment attorneys play a critical role during severance negotiations. Properly identifying potential claims is often what turns a low, “standard” offer into a bigger settlement with stronger terms. In other words, understanding your legal rights is what creates the leverage to increase your severance.
Many employees learn that a so-called non-negotiable severance in California can still be improved once potential FEHA or wage claims are identified.
If you want to understand how the Fair Employment and Housing Act protects employees from discrimination, retaliation, and harassment, read my blog: FEHA: How It Protects California Employees.
If you’re trying to figure out who to trust with your severance or employment case, read my guide on what really matters when choosing legal representation in How Do I Select a California Employment Lawyer?
If you want to understand how severance numbers are calculated, and how to challenge them, read my post: Severance Pay Demand: How to Calculate Effectively
Before you accept a take-it-or-leave-it severance offer, call Matt Ruggles at the Ruggles Law Firm at (916) 758-8058. A quick review can determine whether your agreement is truly non-negotiable or whether you actually have leverage to demand more.
Myth #4: “You Cannot Change the Legal Language in a California Severance Agreement.”
Behind the Myth: Why Employers Push “Company Template” Severance Clauses
- Employers often claim the legal language is “standard” or dictated by “corporate policy.”
- The agreement is almost always drafted by the company’s lawyers with one goal: protect the employer from future risk.
- Clauses covering confidentiality, non-disparagement, future employment restrictions, and broad releases are often written far more restrictively than necessary.
Reality: California Employees Can Modify Harmful Severance Agreement Clauses
You absolutely can request changes to legal terms that are overly broad, harmful to your career, or unfairly limit your rights. A well-negotiated severance is not just about the dollar amount. It is about making sure you are not signing away more than you should. In California, an experienced employment attorney can often narrow or modify harmful clauses while preserving or even increasing the financial compensation.
Matt’s Legal Observation: Template Clauses Are Negotiation Starting Points
“A so-called ‘standard clause’ is just a starting point. It’s not a legal commandment, and it’s almost always written for their benefit and not yours.”
If you’re trying to understand what contract terms actually matter at the executive level, learn more in my comprehensive post: How to Negotiate Executive Severance Agreement Terms
Myth #5: “If You Refuse to Sign a Severance Agreement in California, You Get Nothing.”
Behind the Myth: Why Employers Threaten “No Severance”
- Employers present signing as your only way to walk away with any compensation, hoping fear will push you to accept quickly.
- Severance is rarely a goodwill gesture. It is almost always payment in exchange for your legal release, which means they believe there is risk.
- Refusing to sign keeps your legal claims alive, which is typically what employers are most concerned about.
Reality: Declining to Sign Keeps Your Legal Leverage Alive in California
Declining to sign does not leave you empty-handed. It leaves your legal leverage intact. If you experienced retaliation, discrimination, harassment, or wrongful termination, not signing may put you in a stronger position to negotiate or even pursue a legal claim. Walking away from a non-negotiable severance in California, even temporarily, can be a strategic move that signals you understand your rights and are willing to protect them.
Matt’s Legal Observation: Refusing to Sign Preserves Your Legal Claims
“When you refuse to sign, you keep your legal claims alive. That possibility alone is often what scares employers the most.”
If you want to negotiate like someone who has spent years battling employers, read my opinion: How to Negotiate Severance Like an Employment Lawyer
What to Do If You’re Told Your Severance Is “Non-Negotiable” in California
If your employer claims your severance is a final “take-it-or-leave-it” offer, do not assume that a so-called non-negotiable severance in California is truly final. Here are the steps employees should take when they’re unsure whether severance is negotiable in California:
- Pause before signing anything: Employers often label agreements as take-it-or-leave-it severance offers to trigger fear and urgency. Do not rush into a binding legal release without understanding your rights.
- Evaluate whether you might have legal claims: If you may have been wrongfully terminated, discriminated against, or denied wages under the FEHA or California Labor Code protections, those claims can create leverage to negotiate a higher severance.
- Request time to review the agreement: Asking for additional time is common and does not jeopardize your offer. This single step signals that you may be evaluating whether you can negotiate severance in California based on your legal rights.
- Consult with an employment attorney to determine whether your severance is actually negotiable: A lawyer can quickly determine whether the agreement is fair, whether your employer is trying to silence potential legal claims, and whether a supposedly non-negotiable severance package can be improved.
- Decide whether to negotiate or prepare for legal action: If an attorney confirms you have leverage, you may be positioned to turn a low take-it-or-leave-it severance into a stronger payout or pursue a wrongful termination or retaliation claim instead.
Frequently Asked Questions About Non-Negotiable Severance in California
Is severance negotiable in California, or is a ‘non-negotiable’ severance agreement really final?
Not necessarily. Even if your employer labels it as “non-negotiable,” a severance offer in California is typically just an opening proposal. Because severance is a voluntary payment in exchange for your legal release, California employees often have room to negotiate the amount, the payment schedule, and restrictive clauses such as non-disparagement or non-solicitation.
Can I negotiate a severance agreement in California even if my employer says it is final or take-it-or-leave-it?
Yes. In most cases, what employers call a “final” or “take-it-or-leave-it severance” is simply their opening offer. Under California law, severance agreements are generally voluntary and negotiable because they are typically offered in exchange for your legal release of claims. If you may have leverage under the FEHA (retaliation, discrimination, wrongful termination) or California wage laws, an attorney can often challenge the initial offer and negotiate stronger compensation or better terms even when the package is labeled “non-negotiable.”
What are my rights if I am told my severance is non-negotiable in California?
Under California law, you are not required to accept any severance offer. If you experienced retaliation, discrimination, harassment, wrongful termination, or unpaid wage issues, you may have legal claims that give you leverage, even when the employer claims the severance is firm.
Can I walk away from a non-negotiable severance agreement in California and still take legal action?
Yes. Refusing to sign leaves your legal claims intact, which may be more valuable than the initial offer. When employers push a “take it or leave it” severance, it often signals concern about potential liability. Walking away can be a strategic move if you suspect wrongful treatment.
What can I negotiate even when an employer claims the severance is non-negotiable in California?
Employees can often negotiate more than just the payout. This includes COBRA coverage, payment timing, the removal or softening of non-disparagement clauses, limits on confidentiality, neutral or positive references, and the narrowing of overly broad releases. A package labeled “non-negotiable” is frequently still negotiable in substance.
Why would an employer call a severance non-negotiable in California?
Employers use this language to create urgency, discourage questions, and prevent employees from consulting an attorney. The “non-negotiable” label is often a psychological tactic rather than a legal restriction. It is designed to make you believe you have no leverage when you may in fact have significant rights.
Should I contact an employment lawyer if offered a non-negotiable severance in California?
Yes. An experienced California employment attorney can evaluate whether the severance reflects the employer’s potential legal exposure and determine if the terms can be improved. Even a short consultation can reveal hidden risks in the agreement and opportunities to negotiate stronger compensation or better protections.
If you’re trying to avoid missteps that cost you money or legal protection, read my warning-based guide: How Do I Avoid Mistakes When Negotiating a Severance Agreement?
Matt’s Final Thought on Severance Agreement Negotiating
When an employer calls severance ‘non-negotiable’ or frames it as a take-it-or-leave-it severance offer in California, that’s usually a tactic and not a legal reality.
Every word, deadline, and dollar in that agreement is designed to protect the employer. Understanding your rights, your leverage, and your options under California law is how you level the playing field.
Before you sign, get advice from someone who knows what these agreements really mean.
Contact the Ruggles Law Firm at 916-758-8058 to Evaluate Your Potential Lawsuit
If you’ve been offered a severance package in California, you don’t have to go through it alone and you don’t have to accept the first offer.
The Ruggles Law Firm helps employees negotiate stronger severance packages and uncover hidden leverage employers don’t want you to see.
📞 Call (916) 758-8058 or visit www.ruggleslawfirm.com to schedule a confidential consultation today.
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.
Blog posts are not legal advice and are for information purposes only. Contact the Ruggles Law Firm for consideration of your individual circumstances.
