Before proceeding, please review the  legal disclaimer.

Can You Negotiate a Severance Package in Texas? What You Need to Know

Losing a job can be stressful—whether it’s a layoff, termination, or mutual agreement. But before you sign any exit paperwork, it’s important to ask:
Can you negotiate a severance package?

The good news is: Yes, you can—and in many cases, you should.

Severance agreements are not always set in stone. With the right knowledge (and possibly legal help), you may be able to increase your payout, extend your benefits, or remove harmful clauses that could hurt your future job prospects.

This blog breaks down your rights under Texas law, what’s negotiable, and when to bring in a severance lawyer to review your agreement.

What Is a Severance Package?

A severance package is a collection of pay and benefits that an employer may offer when an employee leaves the company, especially after a layoff or termination. It may include:

• A lump-sum or continued salary payment
  
  
• Continued health insurance or COBRA subsidies
  
  
• Payment for unused PTO or vacation days
  
  
• A letter of recommendation or job reference
  
  
• Non-disparagement or non-compete clauses
  
  
• Waivers preventing you from suing the company
  
  

⚠️ In Texas, employers are not legally required to offer severance—but many do, especially for long-term employees or as part of corporate downsizing.

Can You Negotiate a Severance Package?

Yes—and often, you should.

A severance agreement is a contract—and like any contract, the terms are negotiable. Employers may hope you sign quickly, but you have the right to take your time, review it, and ask for changes.

You can negotiate for:

• More severance pay
  
  
• Extended health coverage
  
  
• Removal of non-compete or gag clauses
  
  
• Payment for unused vacation or sick days
  
  
• A neutral job reference or letter of recommendation
  
  
• More favorable payment terms (e.g., lump sum instead of installments)
  
  

💡 You typically have 7–21 days to review a severance agreement—don’t rush it.

When Is It Worth Negotiating?

Negotiating is especially important if:

• You’ve been with the company for several years
  
  
• You were terminated under suspicious or unfair circumstances
  
  
• You’re giving up legal claims by signing the agreement
  
  
• The severance amount is low compared to your salary or industry standard
  
  
• The agreement includes restrictive clauses (like a non-compete)
  
  
• You’re being pressured to sign quickly
  
  

In many cases, companies are willing to negotiate—especially if they want a smooth exit and to avoid legal disputes.

What Rights Are You Giving Up by Signing?

This is one of the most overlooked aspects of a severance agreement. By signing, you may be waiving your right to:

• Sue for wrongful termination
  
  
• File claims for discrimination or harassment
  
  
• Pursue unpaid wage or overtime claims
  
  
• Speak publicly about your termination or the company
  
  

That’s why it’s critical to have a severance attorney review the agreement—you don’t want to give up important rights for too little in return.

How to Negotiate a Severance Package

1. Don’t Sign Right Away

Ask for time to review the agreement. This is normal—and your employer should respect it.

2. Review the Fine Print

Look for clauses on:

• Confidentiality
  
  
• Non-disparagement
  
  
• Non-compete or non-solicitation
  
  
• Arbitration and waivers
  
  
• Release of claims
  
  

3. Do Market Research

Check what employees in similar positions are offered in terms of severance (industry norms, tenure-based formulas, etc.).

4. Prepare Your Case

Highlight:

• Your performance and contributions
  
  
• Any legal claims you may be waiving
  
  
• Length of service
  
  
• Business disruptions your departure may cause
  
  

5. Work with a Lawyer

An employment lawyer can:

• Spot hidden risks
  
  
• Improve your negotiating position
  
  
• Communicate with your employer on your behalf
  
  
• Ensure the final deal protects your future
  
  

What If You Were Fired or Laid Off?

Whether you were fired for cause or laid off without fault, you may still have leverage. Especially if:

• You believe the termination was unfair or discriminatory
  
  
• You suspect the employer wants to avoid a lawsuit
  
  
• You were asked to leave without a clear reason
  
  
• Others received severance and you didn’t
  
  

📌 Even employees who were fired for misconduct may be offered severance—but it’s best to have a lawyer guide you through the process.

Are Non-Compete Agreements Negotiable?

Yes. Many severance agreements include non-compete or non-solicitation clauses that can limit your job opportunities after leaving.

These clauses can often be:

• Removed entirely
  
  
• Shortened in duration
  
  
• Limited to a specific region or type of work
  
  
• Replaced with non-disclosure agreements
  
  

💬 A lawyer can often get these clauses narrowed or eliminated during severance negotiations.

How The Lange Firm Can Help

At The Lange Firm, we help employees across Texas negotiate stronger, fairer severance agreements. We’ll:

• Review your severance offer in detail
  
  
• Identify risks and opportunities
  
  
• Negotiate better terms on your behalf
  
  
• Ensure you’re not signing away valuable rights
  
  
• Help you walk away with dignity—and security
  
  

📞 **Call us