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California Severance Agreement — Draft Template

California separation documents need final-pay, protected-disclosure, attorney-consultation, and noncompete review. Leave and household work also have distinct state protections.

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Document details

Set the date, jurisdiction, and your internal reference. * Required for completion.

California preparation notes

California separation documents need final-pay, protected-disclosure, attorney-consultation, and noncompete review. Leave and household work also have distinct state protections.

Research checked October 5, 2026 · Preparation guidance, not legal validation

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MAKE THE DOCUMENT WORK FOR YOUR SITUATION

About this severance agreement — draft

Organize a proposed separation package and release for review. A termination letter states a separation decision; a severance agreement proposes additional consideration and obligations that require separate analysis.

When to use it

  • Use as a draft when discussing additional separation compensation or benefits and a proposed release.
  • Use the correct individual or group program process where age-claim waivers are involved; this builder does not determine a valid release.

What to gather before completing it

  • Separate earned wages, vacation, commissions, and vested benefits from the additional payment offered for a release.
  • Identify work locations, applicable agreement category, federal waiver coverage, required advice and attachments, and each review or revocation step.
  • Examine the actual release, confidentiality, non-disparagement, cooperation, and restrictive terms; record rights that cannot be waived or suppressed.

Common mistakes to avoid

  • Withholding final wages until the employee signs a release or treating money already owed as new consideration.
  • Using one review period for every worker, state, and group layoff.
  • Barring agency reporting, future claims, or protected workplace discussions through a broad catch-all clause.

After you complete the document

  • Retain the final offer, revisions, actual required notices, and delivery evidence.
  • Track the applicable revocation process and reviewed effective date before relying on the release.
  • Pay the separate components when due and preserve the executed agreement, benefits notices, and wage records.

What the template includes

The online builder and downloaded documents use the same fields. A selected state can add relevant research prompts. Complete only applicable items; add explanations for exceptions rather than assuming a blank entry resolves them.

Document details4 inputs +

Set the date, jurisdiction, and your internal reference.

  • Document date *
  • US state *
  • County
  • Document reference
Work location & legal coverage5 inputs +

Record the actual facts, reviewed rule, and supporting references. No answer here certifies a waiver, exemption, restriction, or deadline as valid.

  • States where work is actually performed
  • Local workforce rules and official references
  • Employer size and coverage facts reviewed
  • Applicable collective agreement or representation
  • Reviewed rule and dated source reference
Severance release review record12 inputs +

Record the actual facts, reviewed rule, and supporting references. No answer here certifies a waiver, exemption, restriction, or deadline as valid.

  • Earned wages and benefits owed independently of release
  • Additional severance consideration and basis
  • ADEA coverage and age waiver review
  • Individual or group program category reviewed
  • Final offer delivered on
  • Material revisions and delivery record
  • Reviewed consideration period and basis
  • Reviewed revocation method period and contact
  • Required program and age information attachment reference
  • Protected rights and nonwaivable claim exclusions
  • Written attorney consultation advice delivery record
  • Reviewed effective date and payment conditions
Earned pay & separation handover6 inputs +

Record the actual facts, reviewed rule, and supporting references. No answer here certifies a waiver, exemption, restriction, or deadline as valid.

  • Actual voluntary or involuntary separation circumstances
  • Wages commissions expense payments and leave itemization
  • Reviewed final pay due date and basis
  • Payment method and delivery record
  • Separate benefits and required separation notice references
  • Property return handled separately from wages
Employment details13 inputs +

Use accurate facts and apply your organization’s policies consistently.

  • Employer name *
  • Employee name *
  • Separation date *
  • Proposed severance (USD) *
  • Payment timing and conditions *
  • Benefits continuation
  • Proposed claims release and exclusions *
  • Legally required consideration / revocation periods *
  • Protected rights and nonwaivable claims *
  • Proposed confidentiality terms
  • Employment reference arrangements
  • Return of property
  • Professional review notes
Additional details & signing7 inputs +

Add attachments, exceptions, and the names of authorized signers.

  • Attachments / supporting records
  • Exceptions / additional terms
  • First signer printed name
  • First signer title
  • Second signer printed name
  • Second signer title
  • Signing date
California separation agreement review8 inputs +

Record the actual facts, reviewed rule, and supporting references. No answer here certifies a waiver, exemption, restriction, or deadline as valid.

  • Separation or negotiated settlement category reviewed
  • Written right to consult attorney notice reference
  • Separation offer supplied on
  • Reviewed business day consultation period and basis
  • Federal age waiver process reviewed separately
  • Unlawful workplace conduct disclosure carveout reviewed
  • Actual confidentiality and non disparagement wording reviewed
  • Scope of claims and unknown claims issues reviewed
California final wage record5 inputs +

Record the actual facts, reviewed rule, and supporting references. No answer here certifies a waiver, exemption, restriction, or deadline as valid.

  • Discharge or resignation facts and notice supplied
  • Reviewed wage payment time and applicable exception
  • Accrued unused vacation calculation reference
  • Earned commission calculation and conditions
  • Reviewed wage delivery location and method

Practical tips

  • Be specific. A clear description is easier to verify than a broad label.
  • Download Word if you need to add an attachment or adjust the layout.
  • Keep the completed document and supporting records together.

Before signing or submitting

A severance release needs jurisdiction-specific review. Waiver limitations, protected activity, age-related waiver rules, and consideration or revocation periods can apply. This is a draft for review.

RESEARCH & REQUIRED NEXT STEPS

California requirements to review

Final wages and severance are different payments

California DIR states that discharged employees generally receive wages due at termination, including earned unused vacation. Resignation timing depends on advance notice and the applicable circumstances. Record each wage component and delivery arrangement separately from proposed severance; a release review period does not postpone wages already due.

California DIR — Final pay

Do not silence disclosures about unlawful workplace conduct

CRD explains restrictions on confidentiality and non-disparagement in employment, separation, and settlement agreements. Its guidance also describes written notice of the right to consult an attorney and at least five business days for an offered separation agreement. Review the agreement category and exceptions, and preserve any longer applicable federal waiver process.

California CRD — Separation and settlement agreement limitations

Noncompete proposals face a general state prohibition

California’s Attorney General explains that employee noncompetes and other restraints on mobility are generally unlawful, with narrow statutory exceptions. Do not treat a proposed duration, out-of-state signature, or choice-of-law field as proof of enforceability. Keep this tool a review worksheet and consider lawful, carefully reviewed protections for actual confidential information.

California Attorney General — Worker mobility and noncompetes

The FTC rule is not an effective nationwide noncompete ban

The FTC’s current page states that its Noncompete Rule is not in effect or enforceable and records steps to dismiss its appeal in September 2025. Review applicable state law and the particular restraint; neither a blanket federal ban nor automatic enforceability should be assumed.

FTC — Noncompete Rule status

A release needs additional consideration and protected-rights exclusions

EEOC guidance distinguishes severance consideration from amounts already owed and explains knowing, voluntary waivers. Do not require release of future discrimination claims or bar filing an EEOC charge or participating in its proceedings. Separate unpaid wages, benefits, and proposed severance; have the actual release and its exclusions reviewed.

EEOC — Severance waiver guidance

Age-claim waivers need the correct individual or group process

For covered ADEA waivers involving employees age 40 or older, the ordinary individual process provides at least 21 days to consider and seven days to revoke. Certain group termination or exit-incentive programs require 45 days and additional disclosures. Applicability, final-offer changes, and special settlement rules must be reviewed before setting dates.

EEOC — ADEA waiver requirements

Protect concerted activity when writing workplace restrictions

Employees covered by the NLRA have rights to act together concerning wages and working conditions, with or without a union. Review confidentiality, non-disparagement, social-media, complaint, and disciplinary provisions against those rights and coverage exclusions.

NLRB — Employee rights

Frequently asked questions