The number one mistake California employees make with a severance agreement offer happens before the negotiation even starts: unsure how to proceed, the terminated employee waits too long, and then attempts to negotiate with the employer without a lawyer. That combination kills leverage faster than anything else and almost never works. As a result, many employees wind up failing to increase the severance offer, or worse.
I’m Matt Ruggles. I’ve been practicing California employment law for over 30 years, and I’ve negotiated severance agreements for thousands of employees in every industry you can think of. I didn’t write this blog to give you the HR department’s version of events. I wrote it to give you the real, inside perspective of an experienced lawyer who has seen every trick employers use and every mistake employees make.
Read on, and I’m going to walk you through the reasoning of why waiting too long to act and trying to handle severance negotiations without a lawyer is a costly mistake. From my perspective as an employment lawyer with over 30 years of experience, I’ll lay out the specific reasons why delay kills your leverage and why going it alone usually means walking away with less, or nothing at all.
Why You Must Negotiate Your Severance Agreement Immediately in California
When you’re terminated and handed a severance agreement, that piece of paper exists for one reason only: the company is worried you might sue. Don’t kid yourself into thinking it’s generosity. It’s doubt. Management just made the call to fire you, and in that moment, they’re scared silly about making a mistake. That’s why HR departments exist. That’s why employment law is a growth industry.
Here’s what most people don’t realize: when an employer puts a severance offer on the table, they aren’t asking themselves: “What’s fair?” Instead, most employers ask this: “What’s the least amount we can pay to get this signed?” That’s it. They’re betting you won’t know better, won’t find a lawyer, and will just sign it and accept whatever is offered.
This is why timing matters. Right after termination, doubt is fresh in their minds. The iron is hot. But that heat doesn’t last. If you wait a few weeks, managers move on, budgets close, and other employees have already signed the same deal. The company stops worrying and grows comfortable with its position. That’s when the offer hardens into “take it or leave it.”
And here’s the mistake I see employees make over and over: they try to handle it themselves at the start. They toss out an arbitrary and often inflated number or send an email making other unrealistic demands before getting a lawyer involved, which the employer routinely rejects out of hand. Don’t do that. You get one window to use your leverage, and once you waste it on the wrong approach, it’s gone.
California’s at-will system means your employer doesn’t need a good reason to fire you. They just can’t termination your employment based an illegal reason, like discrimination or retaliation. That’s why this moment, the one time when the employer feels vulnerable, is the single best chance you’ll ever have to negotiate real money and increase your severance benefit.
Strike while the iron is hot. Wait, and your demand will become stale, ignored and unsuccessful.
If you’ve been offered a severance package in California, contact the Ruggles Law Firm today for a free evaluation. We handle severance negotiations every day and know how to strike while the iron is hot.
Why Employers Offer a Severance Agreement in California (and What It Really Means for You)
Understand this clearly: a severance agreement is not a gift. It’s not a “thank you” for your years of service. It’s a legal shield for the company. When management makes the decision to fire someone, especially in California’s at-will employment system, the risk of claims is always in the back of their minds. And in that moment, they’re nervous and sometimes flat-out scared of making a mistake.
Here’s the truth about at-will employment: your employer can fire you for almost any reason. They can fire you because your boss doesn’t like you, because you’re too slow, too fast, too expensive, or because they just feel like it. None of that is illegal. What is illegal is when the termination overlaps with a protected category like disability, race, age, or gender or when it’s done in retaliation for asserting your rights. That fine line is why companies buy themselves insurance in the form of a severance agreement, which always includes a broad waiver of all known and unknown claims arising from your former employment. Lawyers call it “buying your peace,” which means the employer is avoiding any sort of lawsuit (“its peace”) in exchange for the payment to the employee in the form of a severance agreement.
Now, sometimes severance is presented in a group layoff setting. In those cases, the terms are often formulaic: X weeks of pay for each year of service is a common. There’s less room to negotiate because the company has standardized the deal across a class of employees. But when it’s an individual severance offer, that’s a completely different story. That’s where the company is looking you in the eye and asking, “What’s the least amount we can pay to get this person to sign and go away?”
And make no mistake, employers are betting on passivity. They’re betting you won’t find an attorney, that you’ll be intimidated by the paperwork, and that you’ll just sign whatever is in front of you. That’s the game. They didn’t put that severance agreement in your hands because they care about you. They put it there because they care about themselves.
California Severance Agreement Deadlines: What the 21-Day and 7-Day Rules Really Mean
Most severance agreements for employees over 40 include a 21-day review period and a 7-day revocation period under the Older Workers Benefit Protection Act (OWBPA), which is part of the federal Age Discrimination in Employment Act (ADEA). The 21-day review is required if the company wants you to waive federal age discrimination claims, which they always do – not necessarily because they are afraid of an age claim, but because it’s required to have a complete release of all claims. Sometimes companies even include it for employees under 40, just to make sure the release sticks.
But here’s the part employees miss: those deadlines are a minimum, not a maximum amount of time the terminated employee has to review and consider the severance agreement. I’ve handled thousands of these agreements, and I’ve never once had an employer say, “No, you can’t go past 21 days.” The law only says they have to give you at least that much time. In practice, extensions are routine. So the question isn’t, “Can I extend the deadline?” The real question is, “Should I?”
And the answer, most of the time, is no. Why? Because your leverage is highest when the company is still nervous i.e. when the termination decision is fresh and managers are still second-guessing themselves. In those first days, they’re waiting to hear from you. They’re worried you’re talking to a lawyer. That’s the moment to move.
If you sit on it, here’s what happens: the case goes stale. The company assumes you can’t find an attorney. They get comfortable with their decision. They’ve already budgeted for the severance. They’ve seen nine out of ten other employees sign without a fight over the past calendar year. At that point, you look like the holdout who’s going to fold. That’s when your leverage collapses and the deal hardens into “take it or leave it.”
Expressly asking to extend the 21-day review deadline almost always is a mistake for one additional reason: when you ask to extend the deadline, you are telegraphing to the employer that you will take the offer if the negotiation does not conclude by the end of the extension! As a result, employers often will refuse to negotiate during the period of the extension, certain you will accept the employer’s initial offer.
I’ve seen this play out in real time. In one case, an employee delayed, thinking they were building pressure. By the time they circled back, the employer had already moved on, the money was reallocated, and the offer was off the table.
Time is of the essence in severance negotiations – don’t wait.
Should You Wait or Act Fast on a Severance Offer? Here’s the Truth
Approach the employer during that 21-day window while the termination is still top of mind. That’s when managers are second-guessing their decision. HR is nervous. The company wants to buy peace. They’re sitting there waiting for you to respond, wondering if you’ve already called a lawyer. That doubt is your leverage.
And here’s what really kills employees’ leverage: they think waiting makes them look stronger. It doesn’t. Delay makes you look weak. The company grows comfortable, reallocates the money, and moves on. I’ve seen it happen. The budget closes, the severance dollars get earmarked for something else, and by the time you finally raise your hand, the opportunity is gone.
Why Waiting on a Severance Offer Destroys Your Leverage in California
Another reality you should recognize is companies can afford to drag things out. They’ve got lawyers on retainer and money in the bank. They can sit still all year if they have to. You can’t. Most employees run out of money fast without a paycheck, and employers know that. That’s why urgency matters. If you wait, the employer entrenches. Once they’ve stopped worrying, once they’ve convinced themselves you’re not a threat, your leverage disappears.
That’s why I tell people: don’t wait, don’t try to be clever, and don’t test the deadline. Strike while the doubt is fresh, while they’re still nervous, and before the offer goes stale. That is the only way you’ll ever maximize a severance package.
Why Negotiating Severance Without a Lawyer Is a Costly Mistake
Too many employees think they can be clever by “throwing out a number” before calling a lawyer. That’s a mistake. In fact, it’s the fastest way to blow your only shot at leverage.
Most people don’t understand how a severance package is actually built. It’s not just salary. There are moving parts i.e. continuation of health benefits, unpaid bonuses or commissions, stock options, and even tax implications. All of those can be negotiated if you know how. But here’s the problem: employees don’t know what counts as leverage, and they don’t know how to use it. For example, are you familiar with asserting legal claims under California’s Fair Employment and Housing Act? Most employees aren’t and truthfully, even many employment lawyers struggle to navigate it. Expecting someone who’s just been let go with no legal background to understand and apply that law effectively is unrealistic, and it’s why trying to go it alone is such a costly mistake.
I see this all the time. Somebody gets handed a severance and thinks they’ve got a “lethal shot” against the company. In reality, what they’ve got is nothing more than a stubbed toe. But here’s the thing: clipping the company’s “big toe” can still be worth many thousands of dollars if it’s presented correctly. The problem is, most people don’t know how to identify it or present it. They either ask for something outrageous, like two years of pay and lifetime medical, or they blurt out a half-baked counter before getting a lawyer involved. Either way, the employer stops listening.
And once you’ve made that mistake, you can’t take it back. You’ve shown your hand, you’ve lowered the stakes, and you’ve wasted the short window when the company was actually nervous. The employer feels safe saying no because you’ve already proven you don’t know how to negotiate.
The reality is this: without legal help, you don’t know the difference between a real pressure point and a dead end. You don’t know how to frame the ask in a way that forces the company to explain to their higher-ups, “Here’s why we didn’t get this signed.” That internal reporting pressure is what makes severance money move. Without it, you’re just another easy “no.”
So don’t play lawyer. Don’t toss out a number. Don’t test the waters with your own counter. Severance negotiation is a one-shot game, and if you fire blanks, your leverage is gone forever.
If you want to understand how leverage really works in severance negotiations (and how to use it the way an experienced employment lawyer does) read my blog: How to Use Leverage in Severance Negotiation.
How a California Severance Lawyer Increases Your Leverage
Employers can reject weak requests with no consequences. If you come in on your own, throw out a random number, or try to “sound tough,” they don’t lose sleep saying no to you. But once you bring in a seasoned California severance attorney, everything changes.
Now the HR manager or in-house counsel isn’t just dealing with you, they have to answer to their boss. They have to explain up the chain: “Why didn’t you get this agreement signed?” That reporting pressure is part of your leverage. Companies hate risk, and they hate having to justify to their executives why a deal didn’t get closed.
Here’s how I think about it: without a lawyer, most employees negotiating on their own register as a “1” or “2” on the employer’s risk scale. Easy to brush off. Safe to reject. But when you hire a strong attorney who knows how to work the process, that number jumps into the 7, 8, 9 – maybe even 10 range. At that level, saying no feels dangerous. The person rejecting your request knows they’ll have to report upstairs and defend why they let it go sideways. Most managers don’t want that fight.
That’s why having the right lawyer is such a game-changer. We know how to frame the ask in a way that makes it scarier for the company to say no than to say yes. And when that shift happens, your severance package grows.
If you’re finding this helpful and want a deeper look at how an experienced employment lawyer approaches severance negotiations, read my blog: How to Negotiate Severance Like an Employment Lawyer.
FAQ: Acting Quickly and Hiring a Lawyer for Severance in California
Do I Really Have 21 Days to Sign a Severance Agreement in California?
Not if you want leverage. The 21-day period is a legal minimum under federal law for employees over 40. Employers often extend deadlines, but your bargaining power drops with each passing day.
Why Is Timing Critical in California Severance Negotiations?
Because your employer is most nervous right after termination. That’s when mistakes are fresh and managers want closure. Once the dust settles, the employer feels safer and less motivated to negotiate.
What Happens If I Negotiate a Severance Package Without a Lawyer?
You risk missing claims you didn’t know you had. A lawyer knows what legal exposure the company fears – discrimination, retaliation, unpaid wages – and can use that knowledge to improve your package. Employers don’t hand out better terms just because you ask nicely.
Can Hiring a Lawyer Improve My Severance Agreement in California?
Yes. Employers pay more when they realize you’re serious about enforcing your rights. Experienced counsel shifts the conversation from HR’s script to the company’s risk. That’s when offers grow.
Should I Ever Sign a Severance Agreement Without a Lawyer?
Only if you’ve confirmed the agreement is fair and that you’re not giving up valuable claims. Most people can’t assess that without counsel. Signing without review is rolling the dice with your career and finances.
Don’t Let Your Severance Opportunity Expire. Act Now.
Time is everything in severance negotiations. Don’t wait until the last day. Don’t send your own counteroffer. Don’t assume the deadline is fixed.
Contact an employment lawyer immediately, while the iron is still hot. Waiting only helps the employer. Acting quickly gives you the leverage you need.
If you’ve been offered a severance agreement in California, call the Ruggles Law Firm today for a free evaluation. We negotiate severance packages every week, and we know how to maximize your leverage before it disappears.
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.
