Talk to a lawyer now — free case review
Get clear guidance on your employment situation — severance, wrongful dismissal and your rights. No appointment, confidential.
Runs in your browser · free · confidential
Our services
Process
Our assessment begins with a thorough review of all relevant documents: the employment contract, the employer's severance policy, and the specific separation agreement offered. We analyze the calculation formula, which often considers base salary and years of service. A common benchmark is one to two weeks of pay per year of service, though this varies. We then evaluate the offer against potential legal claims, such as age discrimination under the ADEA or violations of the WARN Act for mass layoffs. This process ensures we identify any deficiencies and build a strong case for negotiation. For a detailed guide on initial steps, review our resource on What To Do When You Get Fired.
At a Glance
| Parameter | Reference Value |
|---|---|
| Common Calculation Basis | Weeks of pay per year of service |
| Typical Review Timeline | 3-7 business days |
| Key Influencing Factors | Tenure, Salary, Release Scope, Potential Claims |
| WARN Act Notice Period | 60 days for covered layoffs |
Local Considerations — USA
Severance practices vary significantly across the United States due to differing state laws and local market conditions. In major financial hubs like New York, severance may be more standardized for highly compensated employees, while in tech-centric regions like California, equity and bonus considerations are paramount. States like Montana have unique wrongful discharge laws that impact severance negotiations. Our national practice is adept at navigating these regional legal landscapes, ensuring advice is tailored whether a client is in a traditional employment-at-will state or a jurisdiction with stronger worker protections. We provide localized insights for clients in major markets across the country.
Request a Quote
Our team reviews your project and issues an initial report at no cost.
Or write us directly at [email protected]
Standards & Compliance
- Age Discrimination in Employment Act (ADEA)
- Worker Adjustment and Retraining Notification (WARN) Act
- State-Specific Wage Payment Laws
- Older Workers Benefit Protection Act (OWBPA)
Frequently Asked Questions
Is severance pay required by law in the United States?
No, there is no federal law requiring private employers to provide severance pay. It is typically governed by an employment contract, a company policy, or a collective bargaining agreement. It may also be offered to secure a release of legal claims.
What is the most common formula used to calculate severance?
A frequent formula is one or two weeks of pay for each year of employment. However, this is not a legal standard. The actual calculation depends entirely on the employer's policy or contract, and can be influenced by negotiation and the strength of potential legal claims.
How long do I have to review and sign a severance agreement?
For agreements that ask you to waive age discrimination claims under the OWBPA, you must be given at least 21 days to consider the offer and 7 days to revoke after signing. For other claims, review periods vary but should allow reasonable time for attorney consultation.
How much does a severance pay review and negotiation cost?
Legal fees depend on case complexity, the attorney's experience, and geographic location. Many firms offer flat-fee package reviews or hourly rates. It is best to request a specific consultation and fee quote based on your documents and circumstances.