The release is the core of every severance agreement — it is the reason your employer is offering you money. A typical release covers claims under Title VII, the ADA, the ADEA, the Illinois Human Rights Act, the Illinois Wage Payment and Collection Act, FMLA, ERISA, common law wrongful termination, breach of contract, and defamation. We review the release language to determine whether it is broader than it needs to be, whether it covers claims you may not realize you have, and whether there are carve-outs for non-waivable rights.

There are certain rights you cannot waive in a severance agreement, regardless of what the document says: the right to file a charge with the EEOC or the Illinois Department of Human Rights, the right to file for unemployment benefits, workers’ compensation rights, and FLSA claims (which require specific, separate waiver procedures). If the release attempts to waive these rights, it may indicate the agreement was not drafted carefully — and it creates an opportunity to negotiate.

We also evaluate whether the release is mutual — whether your employer is also releasing claims against you — and whether there are cooperation or litigation assistance clauses that could require you to help your former employer in future lawsuits.

There is no legal formula for severance in Illinois — employers are not required to offer severance at all. Common ranges are one week to one month of pay per year of service, but the actual amount depends on your role, tenure, the reason for termination, your access to confidential information, and — most importantly — what legal claims you might have.

We assess whether the offered amount is reasonable relative to the value of the rights you are giving up. If you were recently terminated after filing a complaint, requesting a medical accommodation, taking FMLA leave, or raising concerns about discrimination, your claims may have significant value — and the initial severance offer may dramatically undervalue them. Employees with legitimate leverage routinely negotiate improvements of 50–100% over initial offers.

We also review the payment structure — lump sum versus installments, tax withholding, timing of payment relative to revocation periods, and whether the payment is contingent on additional obligations like cooperation clauses or non-disparagement.

Many severance agreements include or reaffirm non-compete, non-solicitation, and confidentiality provisions that restrict where you can work, which clients you can contact, and which colleagues you can recruit after you leave. These restrictions can significantly limit your career options — sometimes for one to two years — and they are often more aggressive than what is legally enforceable.

Under the Illinois Freedom to Work Act, non-compete agreements require you to earn at least $75,000 annually, and non-solicitation agreements require at least $45,000. Both require 14-day advance review and written attorney consultation advisement. If the agreement does not meet these requirements, the restrictions may be void and unenforceable — and you should not accept them without knowing that. For a detailed guide, see our non-compete review service.

One of the most valuable outcomes of our review is identifying restrictive covenants that can be removed or narrowed as part of the negotiation. Employers often include broad restrictions as a default — they may be willing to modify them if asked, particularly when the restrictions are not legally defensible.

The amount of leverage you have in a severance negotiation depends on the strength of the legal claims you could bring if you did not sign. If your termination involved potential discrimination, harassment, retaliation, or breach of contract, those claims have monetary value — and your employer knows it.

We assess leverage based on the circumstances of your termination: Were you terminated after filing a complaint or requesting an accommodation? Is there a pattern of treating employees in your protected class differently? Were there documentation gaps or inconsistencies in the stated reason for your termination? Did you have access to information about company practices that your employer does not want disclosed? Each of these factors increases your negotiating position.

Even if you are not sure whether you have a claim, that is exactly what we evaluate. Many employees do not realize they have viable claims until an attorney reviews the circumstances. That assessment is part of the $750 flat-fee review.

Most severance agreements include confidentiality clauses prohibiting you from disclosing the terms of the agreement and non-disparagement clauses prohibiting you from making negative statements about the company. These provisions can be broader than you realize — some are drafted so broadly that even telling a friend you were “treated unfairly” could technically be a violation.

Under the Illinois Workplace Transparency Act, there are limits on non-disclosure and non-disparagement provisions in agreements involving claims of harassment or discrimination. If your separation involves those issues, certain confidentiality restrictions may be unenforceable or may require specific disclosure provisions.

We also evaluate whether the non-disparagement clause is mutual — whether your employer also agrees not to disparage you. If it is one-sided, that is a negotiation point. A mutual non-disparagement clause with a neutral reference agreement is standard and reasonable.

Severance pay is not the only financial component. We review whether the agreement addresses COBRA continuation (and whether your employer is subsidizing premiums), outstanding bonus or commission payments (which may already be earned and owed to you regardless of termination), equity and stock options (including acceleration provisions and exercise windows), accrued PTO (Illinois law requires payout of unused vacation upon termination under the IWPCA), and retirement plan distributions and 401(k) vesting.

Under the Illinois Wage Payment and Collection Act, your employer must pay your final wages — including accrued vacation — on your next regular payday. These are not severance — they are wages you already earned. If the agreement attempts to condition payment of earned wages on signing the release, that is a red flag.

We also look at outplacement services, reference agreements, and departure narrative — what the company will tell future employers about why you left. A strong reference agreement can be more valuable than additional severance money.

If you are 40 or older, the Older Workers Benefit Protection Act (OWBPA) gives you specific, non-waivable rights when signing a severance agreement. Your employer must give you at least 21 days to review the agreement (or 45 days if you are part of a group layoff or reduction in force). After signing, you have 7 days to revoke — during which the agreement is not yet binding. The agreement must specifically refer to your rights under the Age Discrimination in Employment Act (ADEA), and your employer must advise you in writing to consult an attorney.

If the agreement does not comply with every OWBPA requirement, the age discrimination release is void. You keep the severance money and you can still sue for age discrimination. This is one of the most common defects we find — and it creates significant leverage.

Even if you are under 40, you should not let your employer pressure you into signing quickly. Illinois does not impose a statutory review period for employees under 40, but you can always ask for more time — and employers typically grant it. Do not sign under pressure.

Severance agreements are almost always negotiable. Your employer offered you money because they want your signature — which means your signature has value. The question is how much value. Based on our review, we advise you on what is negotiable in your specific situation. Common areas for negotiation include increasing the severance amount, extending COBRA subsidies, removing or narrowing the non-compete, adding a mutual non-disparagement clause, securing a neutral or positive reference agreement, modifying cooperation clauses, and clarifying the departure narrative.

If you want us to handle the negotiation on your behalf, we can discuss that as a next step after the review. Many clients use the review to understand their position and then negotiate themselves based on our guidance. Others prefer to have us negotiate directly with their employer. Either approach works — the important thing is that you negotiate from an informed position.

For a deeper look at negotiation strategy, see our blogs: How to Negotiate a Severance Agreement in Illinois → and Using Leverage to Negotiate a Severance Agreement →