Severance Agreement Review Attorney in Austin, Texas

Severance agreements typically include broad releases of legal claims — waivers of any right to sue the employer for anything arising out of the employment relationship. The specific claims being waived, the adequacy of the consideration offered, and the presence of other provisions (non-disparagement, non-compete, cooperation obligations) all affect the value of the agreement and your ability to negotiate better terms. Employment attorneys in Austin evaluate severance packages regularly and often identify leverage that employees do not recognize.

A standard severance agreement includes: the amount of severance pay and the payment schedule; a release of claims (waiving the right to sue for discrimination, harassment, wage theft, wrongful termination, and typically any other employment claim); a non-disparagement clause (prohibiting the employee from making negative statements about the company); a confidentiality clause (restricting what the employee can say about the company, the agreement, or the circumstances of the separation); and often a cooperation clause (requiring the employee to assist with litigation or investigations after the separation).

The adequacy of severance pay depends on context. There is no Texas or federal law requiring severance pay — it is entirely a matter of contract. One week per year of service is a common starting point, but it is only a starting point. If the circumstances of the termination suggest potential legal claims — discrimination, retaliation, FMLA interference, EEOC activity — the employer's calculation of what the separation is worth changes significantly. Employers who terminated employees in suspicious circumstances often pay more when the employee's attorney identifies the legal exposure.

ADEA (Age Discrimination in Employment Act) waivers require specific procedural protections for employees over 40. An employee aged 40 or older must be given at least 21 days to consider the agreement (45 days in a group layoff), must be given a 7-day revocation period after signing, must be advised in writing to consult an attorney, and must receive a written explanation of the class or group of employees covered in a group layoff. An ADEA waiver that does not meet these requirements is not valid — meaning age discrimination claims may not be effectively waived even if the employee signed the agreement.

Non-disparagement clauses have become a contested area after the National Labor Relations Board issued guidance in 2023 limiting overbroad non-disparagement provisions in severance agreements for non-management employees. Employers cannot require employees to waive their Section 7 rights to engage in concerted activity or to file charges with the NLRB. Agreements that contain overbroad language in this area may be unenforceable as to those specific provisions.

We connect Austin employees who have received severance agreements with employment attorneys who review the full package — the release scope, the payment adequacy, the non-compete and non-disparagement provisions, the ADEA procedural requirements if applicable, and the negotiating leverage that the circumstances of the termination create. The window to respond to a severance offer is limited, but there is almost always time for a legal review before signing.