A severance agreement asks me to waive claims: what should I read before signing?

Understand the legal framework before signing

The Equal Employment Opportunity Commission (EEOC) has issued guidance on waivers of discrimination claims in severance agreements. This guidance explains the general requirements for such waivers and the special rules that apply when an employee aged 40 or older waives claims under the Age Discrimination in Employment Act (ADEA). The applicability of these rules depends on your age, the type of claim you are releasing, and whether you are part of an individual or group severance program. You should not assume that every severance agreement follows the same timeline or that the same review periods apply to your situation.

Separate money already owed from additional consideration

Before you sign, list all payments and benefits you are owed regardless of the release. Check earned wages, leave payout where owed, reimbursements and contractual amounts against the applicable law and terms. Then identify the additional money or benefits offered specifically in exchange for signing the release. This additional amount is called "consideration" and is one requirement for a valid waiver, rather than the only requirement. Keep the calculation of these amounts together with the proposed agreement. Ask your employer to clarify in writing which payments are already owed and which are new consideration. A document labeled "severance" may bundle several different items, and the title alone does not tell you which promises are new.

Read the entire agreement and note key clauses

Read the whole agreement, not just the release paragraph. Mark the claims you are waiving, the parties involved, and any clauses about confidentiality, cooperation, non-disparagement, repayment of company property, or future obligations. Note the date the agreement was provided to you, any acceptance deadline, and any revocation process that actually applies. Do not rely on a headline period or an employer's summary; obtain individual advice if needed. Keep all versions and amendments, because a changed page can affect what you agreed to.

Ask targeted questions about your specific situation

To make an informed decision, ask your employer or a qualified adviser questions such as: "Which payments in this agreement are already owed to me regardless of my signature?" "What specific claims am I waiving, and does the ADEA's 21-day or 45-day review period apply to my individual or group program?" "Is there a seven-day revocation period after I sign, and how do I invoke it?" These questions help you understand the actual terms and deadlines that apply to you.

Hypothetical illustration: group severance and separate wages

Suppose you are 55 years old and part of a group layoff. Your employer gives you a severance agreement that includes a release of all claims, including ADEA claims. The agreement states you have 45 days to consider and 7 days to revoke after signing. You also receive a separate check for unpaid wages. To evaluate the offer, you should first confirm that the unpaid wages are not conditioned on signing. Then, review whether the 45-day period was actually provided, and whether the group program information requirements were met. Ask: "Does this agreement comply with the ADEA's specific requirements for group programs, and what happens if I sign but later want to revoke?"

Next steps if issues remain unresolved

If after reading the agreement and asking questions you are still unsure about the validity of the waiver or the claims you are releasing, seek advice from a qualified employment attorney . Bring the proposed or signed agreement, any amendments, and a list of the payments you believe are owed. Do not assume that signing prevents you from contacting the EEOC, nor that a questionable clause automatically voids the entire agreement. This guide does not tell you to accept or reject the offer; it helps you understand what to read and ask before deciding.

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