Severance Agreement: When Not to Sign & How to Protect Your Rights

Talking about how much you earn can feel taboo—but in California, it’s not only your right, it’s protected by law. Still, many workers wonder: Can I get in trouble for discussing my pay with coworkers? The short answer is no—but let’s break down your rights and what you can do if your employer crosses the line.

Losing your job can be a daunting experience, especially amid California's evolving job market. Recent layoffs across various sectors, including biotech and retail, have left many employees seeking clarity on their rights and what to do next. If you've been laid off, it’s crucial that you understand your legal protections and options. 1. Understand Your Rights Under the California WARN Act The California Worker Adjustment and Retraining Notification (WARN) Act requires employers with 75 or more employees to provide at least 60-days’ advance notice before conducting mass layoffs , relocations, or plant closures. Failure to comply can result in penalties, including back-pay and the value of lost benefits for each affected employee. 2. Review Your Final Paycheck and Benefits Under California law, laid-off employees must receive their final paycheck, including any unused, accrued vacation pay, on their last day of work. While employers typically do not have to pay out unused sick leave unless a policy or contract says otherwise, they must inform you about your options for continuing health insurance coverage, such as COBRA or Cal-COBRA, if applicable. 3. Evaluate Severance Agreements Carefully Severance packages are not required by law, but some employers offer them voluntarily. These agreements often include financial compensation in exchange for your agreement to waive certain rights, such as the ability to file a lawsuit against the employer. Before signing anything, it's wise to consult with an employment attorney to ensure the terms are fair and that you're not forfeiting your rights to pursue any valid legal claims. 4. Apply for Unemployment Benefits Promptly You may be eligible for unemployment benefits through California's Employment Development Department (EDD). The EDD offers temporary financial assistance while you search for new employment. Ensure you meet the eligibility criteria and apply as soon as possible to avoid delays in receiving unemployment payments. 5. Consider Potential Legal Claims Even though California is an at-will employment state, employers cannot terminate employees for illegal reasons, such as discrimination based on age, race, gender, retaliation for whistleblowing, or taking protected leave. If you suspect your layoff was unlawful, document any relevant incidents and consult with an employment attorney to explore potential claims. 6. Stay Informed About the Job Market California’s job market is shifting, with mass layoffs reported in industries like biotech and retail. Staying informed about job market trends can help you identify opportunities in growing sectors and tailor your job search effectively. 7. Seek Legal Guidance Navigating a layoff can be overwhelming. An experienced employment attorney can provide clarity on your rights, identify potential claims, and provide personalized advice during this transition. Being laid off is never easy but understanding your rights and taking proactive steps can help you navigate this period effectively. Stay informed, seek support, and remember that legal resources are available to assist you. If you've recently been laid off, don’t navigate this alone. Contact Lawyers for Employee and Consumer Rights today for a free consultation with an experienced employment lawyer. We'll review your case and guide you through your legal options.