Reading a severance agreement in California

What California law protects

A release is a promise to give up specified claims. A separation agreement, also called a severance agreement, may contain a general release if it is otherwise lawful and valid. The scope of that promise deserves careful review before you decide. Do not assume that every paragraph has the same effect or that a heading tells you everything beneath it.

FEHA, the Fair Employment and Housing Act, is California's main anti-discrimination law. California also places limits on certain separation and settlement terms. A settlement resolving a complaint can raise different questions from an ordinary separation offer. Tell a lawyer whether you already made an internal complaint, contacted an agency, or filed a lawsuit.

• Government Code section 12964.5 limits separation terms that restrict discussion of unlawful workplace acts. Non-disparagement means a limit on negative statements; the required exception protects discussion of conduct you have reason to believe is unlawful. Source: Government Code 12964.5
• Workers 40 and older may have additional review time under federal law for releases of age claims. Ask a lawyer. Source: EEOC age discrimination
• An employer offering a separation agreement must notify you of your right to consult an attorney and provide at least 5 business days to do so. Source: Government Code 12964.5
• Code of Civil Procedure section 1001 limits certain settlement confidentiality terms. Ask which rules fit your agreement. Source: Code of Civil Procedure 1001
• Code of Civil Procedure section 1002.5 limits certain no-rehire terms in settlements. Ask a lawyer whether it applies. Source: Code of Civil Procedure 1002.5
• FEHA's discrimination rules cover employers that regularly employ 5 or more people. Harassment rules cover employers with 1 or more employees. Retaliation for opposing discrimination or harassment, or for taking part in a complaint, is also prohibited. Source: Government Code 12926

What it can look like

Use these situations as reading prompts, not findings that a term breaks the law. Mark the actual language and bring your questions with the complete agreement.

• You receive an offer and a request to sign immediately. Save the delivery message and ask how much time you have to consult an attorney.
• You see a release covering claims you have not discussed with anyone. Ask what rights it covers and explain any concerns about how your job ended.
• You read a broad promise never to criticize the company. Look for the exception about discussing unlawful workplace acts and ask how the clauses fit together.
• You see a payment amount but cannot tell when it will arrive. Ask for a clear written payment schedule and compare the offer with your own pay records.
• You are asked to keep information confidential. Separate restrictions on the payment amount or business information from restrictions on discussing workplace misconduct.
• You see a term limiting future work with the employer. Tell a lawyer whether you made a complaint and ask whether the settlement rules may apply.

What usually is not covered

This checklist cannot decide whether a release, restriction, or entire agreement is enforceable. The wording, the kind of dispute, and the events leading to the offer matter.

• A separation agreement is not automatically invalid because it includes a release. CRD says a release related to separation may be included if otherwise lawful and valid.
• Protection for discussing unlawful workplace acts does not mean all business information becomes public. CRD says agreements may protect trade secrets and confidential information unrelated to unlawful acts.
• A confidentiality clause about the payment amount is not the same as a ban on discussing unlawful workplace conduct. CRD says the amount paid may be kept confidential.
• A severance offer does not by itself establish discrimination or retaliation. Review the underlying events separately from the terms of the offer.

Related protections

Keep questions about the offer separate from questions about what happened at work. If you believe your dismissal followed a complaint or involved unpaid wages, collect those facts too. An agreement review can then address the actual dispute rather than only the payment figure.

• Wrongful terminationUnderstand possible concerns about why the job ended.
• RetaliationReview changes after protected activity.
• Unpaid wages and final payCompare wage concerns with the separation offer.

What to keep a record of

Keep a complete copy for your own review, including attached documents and later versions. Make a separate list of questions rather than relying on memory. If an explanation differs from the written agreement, ask for clarification in writing.

Do not take confidential company documents that you are not allowed to keep.

• Save the full offer, attachments, emails about delivery, stated signing dates, and proposed changes. Note when you received each version and who sent it.
• Keep pay stubs, schedules, benefit descriptions, and reviews that you may lawfully keep. Use them to ask which payments are already owed and which are part of the offer.
• Write down the dates, names, and words involved in your separation. Keep complaints you made, responses you received, and messages sent to you about the reason your employment ended.
• List practical questions: the payment date, benefits mentioned, return of property, future job restrictions, and what you are asked to promise. Ask who can clarify each point.

Where to file and deadlines

CRD handles complaints about FEHA discrimination, harassment, and retaliation. Its agreement FAQ also explains limits on certain separation terms. A Labor Commissioner wage claim is a separate route for unpaid-wage concerns. There is no single agency deadline in this guide for every dispute involving a severance contract.

Do not treat an employer's offer date as the filing deadline for the underlying workplace issue. Bring both the agreement and a timeline when asking about agency filing. Seeking an explanation of the offer is different from submitting a complaint.

Deadlines can depend on your facts, so talk to a lawyer soon.

• For employment complaints, you must submit an intake form to CRD within 3 years of the unlawful act. In limited cases this can be extended, for example up to 90 days when you discovered the facts later, or up to 1 year after you turn 18 if you were a minor. Government Code section 12960 addresses these deadlines. Source: CRD complaint process
• After you receive a right-to-sue notice, you generally have 1 year from the date of the notice to file a lawsuit. That period can be paused in some situations, such as during CRD dispute resolution. If you also want to keep federal rights, the EEOC deadline for California workers is generally 300 days from the discrimination. Source: Government Code 12965
• For California workers, the deadline to file an EEOC charge is generally 300 calendar days, including for age claims, because California has its own law on the same bases. Filing a charge with either the EEOC or CRD generally counts as filing with the other agency. Source: EEOC time limits

• Where to file in California

Common questions

Sources

• Government Code 12940(h)
• Government Code 12926
• Government Code 12960
• CRD agreement limitations FAQ
• CRD employment protections
• CRD complaint process
• Government Code 12965
• EEOC time limits
• EEOC filing a charge
• Labor Commissioner wage claims

Last reviewed October 28, 2026

This website provides general information about California law and is not legal advice. Information here may not apply to your situation.