Before you Sign a Severance
Quick Guide: Before You Sign That Severance Agreement
Bottom Line: STOP. Don't sign anything immediately. Severance agreements often include legal waivers that give up important rights, including your ability to sue for discrimination or denied accommodations. You have legal protections and time to review. Not Legal Advice but I recommend that if you have faced discrimination, do not sign any severance. A severance agreement may be a maximum of 20K but a discrimination lawsuit may be hundreds of thousands of dollars. Don't settle for less than you deserve
Your Legal Rights Before Signing
You have time to review - Federal law gives you specific review periods
You can negotiate terms - Severance offers are often starting points, not final offers
You can consult an attorney - Many employment lawyers offer free consultations
You don't have to sign - Severance is usually optional (unless in your contract)
You can revoke after signing - You have 7 days to change your mind on age discrimination waivers
Mandatory Review Periods
If you're 40 or older:
- 21 days minimum to review and consider the agreement
- 7 days after signing to revoke your signature
- These deadlines cannot be shortened, even if you want to sign faster
Group layoffs (2+ people 40+ years old):
- 45 days minimum to review
- 7 days after signing to revoke
- Amazon must provide information about all employees selected/not selected
All employees:
- Take time even if not legally required
- Don't let anyone pressure you to sign immediately
Red Flags in Severance Agreements
Be especially careful if the agreement:
- Waives your right to file EEOC complaints
- Prevents you from discussing workplace issues publicly
- Includes very broad non-compete or non-solicitation clauses
- Requires you to return any severance if you file legal claims
- Waives claims you haven't even discovered yet
- Includes admission of wrongdoing on your part
What Severance Agreements Typically Include
You may be giving up rights to sue for:
- Discrimination (race, gender, age, disability, etc.)
- Denied accommodations under the ADA
- Harassment or hostile work environment
- Retaliation for protected activities
- Wage and hour violations
- Wrongful termination
- Whistleblower protections
Common clauses that affect you:
- Non-disclosure agreements (NDAs) - limits what you can say about Amazon
- Non-compete clauses - limits where you can work next
- Non-solicitation - limits contacting former coworkers or clients
- Cooperation clauses - requires helping Amazon in future legal matters
Questions to Ask Before Signing
About the terms:
- Is this the standard severance package or can it be negotiated?
- What happens to my health insurance and other benefits?
- Will Amazon contest my unemployment benefits?
- Can I get a neutral reference for future jobs?
- What exactly am I waiving my right to sue for?
About your situation:
- Do I have potential legal claims Amazon might be trying to prevent?
- Was I denied accommodations or facing discrimination?
- Were there workplace safety issues or other violations?
- Am I being asked to keep quiet about illegal activities?
When You Might Have Strong Legal Claims
Consider consulting a lawyer if you experienced:
- Denied or delayed accommodation requests
- Discrimination based on disability, race, gender, age, etc.
- Retaliation for requesting accommodations or filing complaints
- Harassment from supervisors or coworkers
- Being forced to work in unsafe conditions
- Wage theft or unpaid overtime
- Being fired shortly after requesting accommodations
Negotiation Points
You might be able to negotiate:
- Higher severance amount
- Longer health insurance coverage (COBRA payments)
- Neutral reference letters
- Job search assistance or outplacement services
- Removal of restrictive non-compete clauses (note: enforceability varies by state)
- Keeping company equipment (laptop, phone)
- Extended deadline for stock options
What You Can't Waive (Even in Severance)
These rights typically can't be waived:
- Right to file unemployment claims
- Right to file workers' compensation claims
- Right to report crimes to law enforcement
- Right to cooperate with government investigations
- Rights under some whistleblower laws
- Certain NLRA rights (discussing working conditions with coworkers)
Steps to Take Before Signing
1. Don't rush - Use your full review period
2. Document everything while it's fresh:
- Write down why you think you were terminated
- List any discrimination or accommodation issues
- Note any workplace violations you witnessed
- Save relevant emails and documents (if legally permitted)
3. Calculate what you're really getting:
- How many weeks/months of pay?
- Value of continued benefits
- What would unemployment benefits provide instead?
4. Get legal advice:
- Employment attorneys often do free consultations
- Ask specifically about potential discrimination claims
- Many work on contingency (no fee unless you win)
5. Consider your career impact:
- How will non-compete clauses affect your job search? (enforceability varies by state)
- What will the company say to reference checkers?
- Do you need to keep certain benefits?
Sample Questions for an Attorney
- "Do I have potential claims that are worth more than this severance?"
- "Are the non-compete clauses enforceable in my state?"
- "What am I really giving up by signing this?"
- "Can we negotiate better terms?"
- "Should I take the severance or pursue legal claims?"
- "What are my state's specific laws about severance agreements?"
Red Flag Situations - Get Legal Help Immediately
Contact a lawyer ASAP if:
- You were terminated shortly after requesting accommodations
- Amazon is pressuring you to sign immediately
- The severance seems unusually large (might indicate they're worried about legal claims)
- You have evidence of discrimination or illegal activities
- You were terminated while on medical leave
- The agreement includes unusual or very restrictive terms
Final Checklist Before Signing
- [ ] Used full review period (don't rush)
- [ ] Understood what legal rights you're giving up
- [ ] Consulted with an employment attorney
- [ ] Documented any potential legal claims
- [ ] Negotiated terms if possible
- [ ] Considered impact on future employment
- [ ] Read and understood every clause
- [ ] Confirmed you can revoke if applicable (age 40+)
Quick Contact List
- Find employment attorneys: Your state bar association lawyer referral service
- EEOC: 1-800-669-4000 or eeoc.gov
- Find your state's disability rights organization: disabilityrightsus.org
- Department of Labor: dol.gov for wage/hour questions
Remember: Severance agreements are contracts that benefit Amazon more than you. Take your time, understand what you're signing, and don't let anyone pressure you into giving up valuable legal rights for a few weeks of pay. When in doubt, consult an attorney - it could save you thousands of dollars and important legal protections.