The guide below is general information for employees, not legal advice. Every situation is different. If you believe your rights have been violated, talk to an employment attorney about the facts of your case.
A severance agreement can provide valuable pay and benefits when a job ends, but it almost always requires you to give something up in return — usually a broad release of legal claims against your employer. Before you sign, it is worth understanding what you are releasing, how much time the law gives you to decide, and which terms may be negotiable.
What a release gives up
Most severance agreements ask you to waive claims you may have against the employer, including claims for discrimination, retaliation, unpaid wages, and breach of contract. Once signed, a release is typically permanent and difficult to undo. That is why employers want you to sign — and why you should understand the full scope of what you are giving up before you agree.
A release does not necessarily cover every possible claim. Some rights cannot be waived, and the specific language of the agreement matters. An attorney can review whether the release is enforceable and whether you may have claims worth more than the severance offered.
Statutory review windows
If you are 40 or older and the release includes age-discrimination claims, the Older Workers Benefit Protection Act (OWBPA) requires a minimum review period. For an individual termination, you must be given at least 21 days to consider the agreement. After signing, you have 7 days to revoke. In a group termination program, the consideration period is 45 days, and the employer must provide additional information about who was eligible and who was selected.
Under Minnesota law, if a settlement agreement resolves a claim brought under the Minnesota Human Rights Act, the employee has 15 days after signing to rescind the agreement. Minn. Stat. § 363A.31, subd. 6. These windows exist so employees cannot be pressured into giving up rights without time to think — use them.
Terms worth negotiating
Severance is often more negotiable than employers suggest. Common points include the amount of severance pay, continuation of health benefits, timing of final pay, reference letters, neutral or agreed descriptions of your departure, and narrowing non-compete or non-disparagement language. You may also negotiate payment for unused vacation, equity treatment, or outplacement assistance.
Minnesota now sharply limits new non-compete agreements for most employees, but employers may still propose confidentiality, non-solicitation, or cooperation clauses. Read each provision carefully. What looks like standard boilerplate may affect your next job or your ability to speak about what happened.
Before you sign
Do not sign under pressure on the day you receive an agreement. Gather your employment documents, note important dates, and have the agreement reviewed. The goal is not to delay for its own sake — it is to make an informed decision about whether the package fairly compensates you for the claims you are releasing.