Evaluating Severance Packages for Laid-off Employees

"Just sign here and you'll get 2 weeks severance." She almost did. After negotiation, she walked away with 4 months pay and healthcare. Here's exactly how she did it: Companies expect you to take their first offer. They count on you being too shocked to negotiate. That's why they pressure you to sign immediately. But here's what I learned as corporate counsel: Every severance package has wiggle room. Your negotiation leverage: Time Served • Under 2 years = 2-4 weeks • 2-5 years = 1-3 months • 5+ years = 3-6 months Companies know these ranges. Use them. What's Missing? • Healthcare coverage • Bonus payouts • Commission structures • Unused vacation time • Stock option acceleration • Outplacement services The Hidden Leverage Most severance agreements include: • Non-compete clauses • Non-disclosure terms • Release of claims These have value. Know yours. If You’ve Faced Retaliation or Discrimination • Fired after reporting misconduct or standing up for your rights? • Let go because of age, gender, race, or other protected traits? In those instances, the severance is often a low-ball offer. Speak to an attorney—your claims could be worth more. Don’t sign without exploring your options. Power Moves: • Ask for their severance formula • Request others' packages (anonymized) • Negotiate reference letters • Push for extended benefits • Question restrictive clauses • Ask if their decision follows internal layoff or severance guidelines. What to Avoid • Signing Too Quickly: Take the time you’re legally entitled to before making any decisions. • Overlooking Your File: Request and review your personnel file—it could reveal discrepancies that help your case. • Restrictive Clauses: Don’t agree to non-competes or non-disclosures unless they’re compensated appropriately. Remember: HR's first offer is never their best. They expect negotiation. Don't leave money on the table - and if something feels off, please consult an attorney. Tomorrow: The exact email template to negotiate your package. Follow for part 4 of the layoff survival guide (final part). Disclaimer: This information is for educational purposes only and does not replace professional legal advice. It does not establish an attorney-client relationship. Please consult a qualified attorney for advice on your specific legal situation. #EmploymentAttorney #CaliforniaEmploymentLaw #EmployeeRights #Severance

I get a lot of questions about severance packages. That is not odd. Especially in this day and age of layoffs galore. I recently talked with a follower who left significant money on the table, along with all of her unused vacation time and extended COBRA benefits because she panicked and signed the agreement HR put in front of her. So, here are my best tips for if/when you get laid off. 1. You get called into a meeting with HR, and they hand you a stack of papers and a pen. "Just sign this and we will get a check out to you" they say. 🛑 STOP!! Never, ever, ever sign anything without reviewing it. Severance isn’t a “gift.” It’s a contract. It’s negotiable. Too many people leave money, benefits, and leverage on the table because they’re pressured to sign right now. Here’s how to protect yourself: 🚩 1. Don’t Sign on the Spot If they tell you the offer “expires today,” that’s a pressure tactic. If they insist that this is a 'one-time' opportunity, say this..... “Just to clarify, are you saying this offer is only valid if I sign it right now, in this meeting?” “Can you put that statement in writing so I have it for my records?” -OR- Are you telling me I will lose severance entirely if I don’t sign today?” They will 100% back down. 🚩 2. Everything is Negotiable Severance isn’t always a flat “two weeks per year worked.” You can ask for more. Common negotiation points are.... Extra weeks of pay Health insurance coverage (COBRA paid for longer) Unused vacation or PTO payout Outplacement / career coaching services A neutral reference (no bad-mouthing) Vesting of stock or bonus payout 🚩 3. Watch the Fine Print The “release of claims” is standard, but look out for sneaky clauses. Non-compete → Don’t let them lock you out of your own industry. Non-disparagement → If you can’t say anything bad about them, make sure they can’t say anything bad about you either. 🚩 4. Ask for It in Writing Have them send you a copy of the severance DIGITALLY. So you can forward it to your attorney or anyone you trust for advice. If they refuse, tell them to document their refusal to provide you with a digital copy of the agreement. 🚩 5. Bring in Reinforcements A quick consult with an employment attorney can often get you thousands more. Sometimes just mentioning you’ll have a lawyer look it over changes their tune. Not all severance is created equal. I once had a client go from 3 months to 12 months severance because they gave it to someone else and she knew about it. Precedent is incredibly important. So, if you talk to your peers who have been laid off and they negotiated additional benefits, you CAN and SHOULD use that as leverage. ⚡ Severance is the final handshake with your old employer. Don’t let fear or pressure make you settle for less than you deserve. 👉 Have you ever negotiated severance? Or did you sign on the dotted line? #Severance #Negotiate #KnowYourWorth

Layoffs are here, and they're a legal transaction. Don’t just sign whatever they hand you. Here’s what to say and do if you're laid off: First: You’re not just being let go, you’re being asked to enter a legal agreement. That paperwork? It's usually designed to protect the company, not you. Instead of signing on the spot: ✅ Ask for time. You’re allowed to take the documents home and review them. You don’t have to sign anything in that room. Try saying: “I need time to review this. I’ll follow up after I’ve had a chance to go through it.” or “I’m not signing anything today. I’ll review it on my own time and follow up.” ✅ Look for waivers. Some paperwork includes clauses that waive your rights and you might not even realize it. Read everything. ✅ Double-check the NDA. Whether it’s a new NDA or an expanded one, you need to know exactly what you’re agreeing to. Some exit paperwork includes: -New non-disparagement clauses -Extended NDA terms -Restrictions on what you can say (even in interviews or on LinkedIn) ✅ Know your age rights. In the U.S., if you’re 40 or older, you’re legally entitled to 21 days to consider a severance offer. That’s not a favor, it’s federal law. ✅ Talk to a Lawyer You don’t need to file a lawsuit, but a quick consult with an employment lawyer can give you clarity. Many offer free calls! ✅ Ask for help We at The Crypto Recruiters have a plethora of open roles for you! Bottom line: -Don’t let pressure or awkwardness make you rush. -This isn’t just paperwork, it’s your paycheck, your benefits, and your future reputation. Take your time. Take your power back. Never sign in the moment. Do it on your terms, not theirs. You got this.

7 Simple Steps For Negotiating Your Severance Package: Losing your job? I bet you didn’t know you can negotiate your severance. Here’s how in 7 simple steps: 1. Don’t Sign Anything Right Away Most employees think they have no leverage during a layoff. Employers try to capitalize on that by getting you to sign something without knowing you can negotiate it. Your first step in this process is to ask how much time you have to review the severance package. 2. Consider All Your Options Don’t just look at how long you’ll get paid your base salary. Review: - PTO payouts - COBRA and health benefits - Stock options and bonuses - Stipends for outplacement services The more options you have, the more leverage you have. 3. Assess Your Leverage - Is the company violating any of their own policies with this layoff? - Are they only laying you off or are they laying off a whole team? - Are they worried about bad PR or press? Answering those questions will help you see how much leverage you have. 4. Ask For More Than You Expect This is Negotiation 101. When you make your ask, include more than you think you’ll get. This way, when they say no to some of the items, the total offer value is still higher than what they initially offered. 5. Frame Your Ask In Their Terms Think back on the leverage brainstorm you did. Then try to frame your asks in relation to the things that matter to this company. Ex: Are they worried about bad PR? Then you say something like, “I’d be happy to sign the NDA you sent me if we can extend healthcare benefits by 90 days.” 6. Get It In Writing Don’t accept a verbal agreement as final. As is true with any situation like this, stand firm on having a written offer from the company before you sign anything or make any commitments. It may feel uncomfortable, but it’s a critical part of ensuring you get what you negotiated for. 7. Don’t Be Afraid To Seek Legal Help If your budget allows for it, an employment attorney can often help you uncover areas of leverage. If you consider the value of extra healthcare, more severance pay, etc., consulting an attorney is often a move that can pay for itself many times over. Also, this post isn’t legal advice and you should consult an attorney for that anyway :)

🛑 Before You Sign That Severance Agreement… Too often, employees feel pressure to sign a severance package quickly, especially during an emotional or uncertain time. But here’s the truth: you have the right to pause, review, and even negotiate. Severance agreements aren’t always set in stone. In fact, many contain terms that can be adjusted in favor of the employee - whether it’s additional compensation, extended benefits, or clearer language around non-competes and references. 💡 A few things to consider before signing: - Are the terms fair and clearly written? - Do you fully understand the release of claims? - Could you negotiate more time, money, or support? Taking a moment to review - ideally with a trusted advisor or employment attorney - can make a significant difference in your transition. Empowerment starts with information. Don’t rush the process. You deserve clarity, dignity, and a fair exit.