Can I Negotiate My Severance Agreement?

In many cases, yes. A severance agreement can often be negotiated, but companies vary wildly in their willingness to negotiate severance agreements and how much they will change terms. In our experience, there is no reliable metric for determining an employer’s willingness to negotiate severance agreements other than asking. Some employers have a fair bit of flexibility. Others will only consider revisions to non-monetary terms. And others refuse to budge from the initial offer. Federal law and Georgia law do not set a minimum or maximum amount for severance.

Terms that may be negotiable

• Severance amount and payment timing.
• Neutral reference or limited information in response to an inquiry from a potential employer.
• Eligibility for rehire.
• Non-disparagement and confidentiality terms.
• Noncompete, nonsolicit, and other restrictive covenants.
• Bonuses, commissions, equity, COBRA contributions, or other benefits.
• Non-rehire and cooperation clauses.

Sources of leverage

• Potential legal claims.
• Recent complaints about discrimination, harassment, wages, leave, or safety.
• Senior or specialized role.
• Disputes over commissions, bonuses, or equity.
• A reduction in force or early retirement offering.
• The employer’s desire for a quick and quiet exit.
• Flexibility on assisting in the transition of responsibilities.

What normally doesn’t help improve severance offers

• Requesting an extremely unrealistic amount of severance.
• Emphasizing that you were a high-performing employee.
• Relying on what other employees were offered.
• Threatening to file a lawsuit on non-existent or weak claims.
• Refusing to return company property or equipment.

Common mistakes

• Focusing only on the payment amount.
• Failing to consult with an attorney until after you signed the agreement.
• Ignoring non-monetary terms.
• Failing to get important promises or representations by the employer in writing and included in the severance agreement.

Frequently Asked Questions

Is an employer legally required to offer severance?

No, federal and Georgia law do not require an employer to offer severance or a specific amount of severance. In some cases, like if a company has adopted a severance plan or if the employee has an employment agreement, the company may be obligated to offer a certain amount of severance, which is usually described in a plan or contract.

Will the employer withdraw the offer if I ask for changes?

An employer can withdraw an offer if you ask for changes. However, in our experience, it is extremely uncommon for an employer to withdraw an offer in response to a first-round proposal.

Can I negotiate without a lawyer?

Yes, you can attempt to negotiate changes to a severance offer without a lawyer. However, it may make sense to retain an attorney to explain the terms to you, negotiate potential changes, and assess whether you have potential claims against the company.

What if the employer refuses to increase the amount of severance?

Ultimately, it is your decision to accept or reject the offer.