Your employer laid you off, and now there’s a severance agreement waiting on your signature. It’s normal to feel overwhelmed. But that document you’re holding? It’s not your only option. You can ask for more or walk away with better terms.
A severance agreement isn’t a gift. It’s a contract. And contracts can be negotiated, especially if they contain terms that impact your money, benefits, reputation, or rights. In other words, you can learn how to negotiate a severance package without putting your dignity or your legal standing on the line.
At Smithey Law Group, LLC, we help employees across Maryland make informed, strategic decisions at moments like this. If your employer asked you to sign a severance package or you suspect a layoff is coming, we’ll show you what’s fair, what’s possible, and how to protect your future.
What Is a Severance Package?
A severance package is the bundle of pay and benefits an employer offers when ending your employment. In Maryland, the law doesn’t require employers to provide severance unless a contract or policy promises it. But once an employer offers it, you have a right to review the terms.
Typical packages may include:
- A lump-sum payment or continuation of salary,
- Payment for unused vacation or PTO,
- Continued health insurance (via COBRA or employer-sponsored extension),
- Retirement contributions or stock option vesting,
- A waiver of claims (your agreement not to sue),
- Non-disparagement or confidentiality clauses, and
- Restrictive covenants like non-competes or non-solicits.
Each of these items carries long-term consequences and potential leverage. The moment your employer offers you a package, negotiating the severance package terms becomes critical.
What Can I Ask for When Negotiating Severance Package Terms?
Severance isn’t one-size-fits-all. Depending on your role, tenure, compensation, and the nature of your termination, you may be able to negotiate for a more favorable outcome. You can request:
- Increased severance pay, especially if you’re giving up significant legal rights;
- Extension of healthcare coverage beyond the standard COBRA timeline;
- Payout for all accrued time off, including sick leave;
- Favorable language around references or employment status (e.g., voluntary resignation vs. termination);
- Narrowed or removed restrictive covenants, such as overly broad non-competes;
- Removal of broad non-disparagement clauses, especially if they silence you unfairly; and
- Outplacement support, including resume help or job search services.
Not every employer will grant all requests. But many will negotiate, especially when facing the risk of litigation.
How to Negotiate Severance Package Terms Without Burning Bridges
It’s possible to negotiate severance package terms with professionalism and strength. And it helps to keep these guidelines in mind:
- Stay calm and professional. Emotion is valid, but a businesslike tone gets results.
- Don’t accept verbal promises. Get everything in writing.
- Frame requests around fairness. Position your asks in terms of equity and precedent.
- Focus on mutual benefit. Language like “this would help me move on cleanly” goes a long way.
- Avoid ultimatums. Unless advised by counsel, keep the door open.
- Involve an attorney early. Even if you don’t want them to negotiate for you, a review can help shape your strategy.
Maryland employers expect some level of pushback. Done right, your requests show that you understand your rights and value your contributions.
How to Negotiate a Severance Package: Maryland-Specific Considerations
If you’re a Maryland employee, state law may influence your leverage points. For example:
- Maryland recognizes certain implied contracts. Even if not written, implied terms can be valid in Maryland if your employer has a consistent severance practice.
- The state enforces restrictive covenants narrowly. Overbroad non-competes included in a severance agreement may be unenforceable.
- Older employees have specific rights. Under federal law, employees over 40 must receive clear OWBPA-compliant language and complete transparency during group layoffs.
These rules can work in your favor, especially when you understand what to look for. And if your termination involved discrimination, retaliation, or a violation of public policy, your ability to negotiate improves significantly. Why? Because the employer is asking you to waive serious legal claims that may be worth far more than what it is initially offering. Knowing how to use that leverage is key to securing a stronger severance agreement.
Common Mistakes to Avoid When Negotiating Severance Package Terms
Even savvy professionals make missteps during these conversations. Steer clear of the following:
- Signing documents under pressure, without full review;
- Focusing only on money while ignoring future restrictions;
- Failing to ask questions (many employers expect negotiation but won’t offer more unless prompted);
- Believing “standard” means “non-negotiable,” which is rarely true; and
- Assuming a lawyer will make things worse.
If you’ve already signed, you may still be able to revoke or challenge parts of the agreement, especially if legal defects or coercion are involved. It’s not too late to ask.
What If My Employer Offers Me Severance After a Dispute?
Sometimes, employers offer severance after a termination that has already become contentious. In these cases, negotiating severance package terms becomes even more critical. Why? Because the employer is likely trying to limit exposure. And if they’re asking for a release of claims, that release has value. You don’t give that away without getting something substantial in return.
This is where legal strategy meets negotiation. You may be entitled to:
- Higher compensation in exchange for waiving claims,
- Narrower releases that don’t cover future claims,
- A clean employment record, and
- Confidentiality terms that don’t prevent you from speaking to regulators or future employers.
In short, a severance agreement offered after a dispute raises the stakes. Don’t treat it as routine. Treat it as an opportunity to advocate for a better outcome with the law firmly on your side.
Smithey Law Group, LLC Can Help
At Smithey Law Group, we help employees across Maryland craft strategies, uncover leverage, and negotiate on equal footing with corporate counsel. Our attorneys are nationally recognized leaders in employment law and have been quoted by The Washington Post, featured on MSNBC, and ranked by Chambers USA and Lawdragon for a reason. When your career’s on the line, you want a team that’s been here before. Don’t sign away your rights or leave money on the table. Contact us to understand the implications of your severance agreement and explore potential opportunities to improve it.
