Layoffs arrive like thunder—loud, jarring, and often unexpected. In the storm’s aftermath, many employees wonder what control, if any, they still hold. The answer is more encouraging than you might think. Severance agreements are negotiable. Knowing how to negotiate a severance package when being fired or laid off can significantly impact the trajectory of your career and provide financial security while you plan your next steps.
Severance is not a gift from your employer; it’s a contract. And contracts can be adapted. You may have leverage, even if it doesn’t feel that way in the moment. That’s why guidance matters. At Smithey Law Group LLC, our Annapolis-based attorneys focus exclusively on labor and employment matters. The firm’s lawyers serve on the Maryland State Bar Association’s Labor and Employment Section Council and Board of Governors, publish widely on employment litigation, and have earned national recognition for their advocacy. When you sit down to negotiate, you deserve a team with the skill and focus to protect your future.
Can You Negotiate Severance When Laid Off?
The short answer to this question is yes. Employers want closure when layoffs occur. A signed agreement protects them from future claims. That desire for closure creates an opening. Employees can use it to secure better terms, such as extra pay, extended health benefits, or references that facilitate a smoother transition. However, how much you can negotiate (and what) depends on your position, your contract, and how your employer handled the layoff.
The federal Worker Adjustment and Retraining Notification Act (WARN) requires certain large employers to provide notice before mass layoffs. Maryland law echoes some of these protections, particularly for larger workforces. While these statutes do not guarantee severance, they often give employees the bargaining power to negotiate for it.
What Key Elements Should I Review in a Severance Package Before Signing?
A severance agreement is rarely just about the money. The terms often contain clauses that can affect your rights for years. Look closely at:
- Compensation—including pay continuation, lump sums, or bonus payouts;
- Benefits—such as COBRA continuation, retirement contributions, or stock options;
- Release of claims—for example, waivers of rights under Title VII of the Civil Rights Act, ADA, ADEA, or Maryland law;
- Non-compete and non-solicitation clauses—restrictions on future employment opportunities; and
- References and reputation—agreements about what the employer will say to future potential employers.
Among these different clauses, an attorney can help identify where you have leverage and where a clause may overreach. Maryland law sometimes limits the enforceability of restrictive covenants, providing additional grounds for negotiation.
How to Negotiate a Severance Package When Being Fired
The strategy differs when termination follows alleged performance issues rather than mass layoffs. Still, leverage exists. Employers may fear wrongful termination claims under Title VII, the ADA, or Maryland’s Fair Employment Practices Act. Raising these risks tactfully, through counsel, can strengthen your negotiating position.
Practical steps include:
- Staying professional. Emotions can run high when negotiating, but keeping composure signals strength.
- Assessing leverage. Document any history of discrimination or retaliation, as these claims can add weight to your ability to negotiate.
- Prioritizing goals. Decide whether money, benefits, or lifting restrictive clauses matters most to you.
- Engaging counsel early. A seasoned employment lawyer can frame requests in legal terms that carry authority.
Even in firing scenarios, employees can reshape the terms of a severance agreement by acting with care and seeking professional guidance.
What Are Maryland-Specific Severance Considerations?
Maryland’s employment landscape offers unique angles for negotiation. Under Maryland law, certain restrictive covenants are unenforceable for low-wage workers. This means that severance agreements attempting to impose broad restrictions may not be enforceable. Maryland courts also scrutinize overly broad non-compete agreements, providing employees with additional bargaining tools.
For older employees, Maryland law incorporates federal OWBPA safeguards, requiring clear language, a 21-day consideration period, and a 7-day revocation window. These safeguards aim to prevent employers from rushing employees into waiving their age-discrimination protections.
Smithey Law Group’s attorneys serve on the Labor and Employment Section Council of the Maryland State Bar Association and have helped shape the very framework that governs these negotiations. Our insight can be decisive in helping you face and shape complex Maryland severance agreements.
What Common Mistakes Do Employees Facing Severance Make?
Too many employees sign immediately, eager to move on. Others focus only on the paycheck, overlooking clauses that shape future opportunities. Other frequent and avoidable mistakes include:
- Accepting restrictive covenants without scrutiny,
- Ignoring the value of health insurance extensions,
- Overlooking owed commissions or bonuses,
- Waiving claims without understanding their scope, and
- Negotiating alone without legal guidance.
Avoiding these pitfalls requires patience and informed strategy. Severance agreements carry long-term consequences, both positive and negative, depending on how they’re handled.
Why Does Experienced Legal Representation Matter?
Employers often arrive at the table with their own attorneys. Employees deserve the same protection. An employment lawyer can interpret the fine print, identify and challenge illegal clauses, and negotiate for stronger terms. More importantly, counsel can help balance the power dynamic that often feels stacked against the individual.
At Smithey Law Group LLC, Joyce Smithey and her team focus solely on labor and employment law. Our attorneys have earned recognition from Super Lawyers, Lawdragon, Chambers, and America’s Top 100 High Stakes Litigators, and we have appeared in national outlets including The New York Times, MSNBC, and U.S. News and World Report. This authority is not theoretical. It translates directly into negotiation strength for Maryland employees.
Take the Next Step
The layoff may not have been your choice, but how you leave the company can still reflect your agency. Severance agreements shape finances, benefits, and freedom for months or years to come. The law provides tools, and skilled negotiation sharpens them into results.
If you’re asking, “Can you negotiate severance when laid off?” or wondering how to negotiate a severance package when being fired, the time to act is now. At Smithey Law Group LLC, our attorneys’ exclusive focus on employment law, their thought leadership, and their award-winning track record give you a powerful ally. We help Maryland employees protect their rights, safeguard their futures, and step forward with confidence. Contact us today to talk.
