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How to Negotiate a Severance Package in Texas: A Step-by-Step Guide

If you’ve been laid off, asked to resign, or are parting ways with your employer, you may be offered a severance package. While some employees accept these agreements without question, others take a smart and proactive approach: negotiating.

Why? Because severance packages are often negotiable—and with the right strategy, you could walk away with more money, better benefits, and fewer restrictions. But knowing how to negotiate a severance package takes more than gut instinct.

At The Lange Firm, we help Texas employees at all levels review and negotiate severance terms that protect their interests. In this blog, we’ll explain what to expect in a severance offer and how to negotiate for the best possible outcome.

What Is a Severance Package?

A severance package is a legally binding agreement between you and your employer. It usually provides compensation and benefits in exchange for:

• Waiving your right to sue
  
  
• Agreeing to confidentiality
  
  
• Complying with non-compete or non-disparagement clauses
  
  

A severance package may include:

• A lump-sum payment or salary continuation
  
  
• Payment for unused PTO or vacation time
  
  
• Extended health insurance (COBRA)
  
  
• Job placement assistance
  
  
• Stock options or bonus clarification
  
  
• Restrictions on future employment or speech
  
  

📌 Once signed, you can’t go back. That’s why it’s critical to negotiate before you agree to the terms.

Can You Negotiate a Severance Package?

Yes. Most employers expect negotiation, especially for mid- to high-level employees or those with long tenure.

Severance packages are not “take it or leave it” offers—they’re a starting point. Whether you’re leaving voluntarily or involuntarily, you have a right to ask for better terms.

When Should You Negotiate?

You should negotiate your severance package before signing anything. In some cases, you may have:

• 21 days to consider the offer (especially if you’re over 40 and signing away discrimination claims)
  
  
• 7 days to revoke it after signing
  
  

🛑 Do not sign under pressure. Once you do, you may waive the right to challenge any part of the agreement—including potential legal claims.

How to Negotiate a Severance Package: 8 Smart Tips

✅ 1. Stay Calm and Professional

Even if the termination feels unfair, don’t act emotionally. Treat this like a business negotiation.

Be respectful, express gratitude for the opportunity, and keep the conversation constructive.

✅ 2. Review the Entire Agreement

Before negotiating, read every clause carefully. Look for:

• Waivers of legal claims
  
  
• Confidentiality and non-disparagement clauses
  
  
• Non-compete restrictions
  
  
• Arbitration clauses
  
  
• Severance amount and payment terms
  
  
• Benefits continuation
  
  

If you’re unsure, have The Lange Firm review the document with you to spot red flags.

✅ 3. Know Your Leverage

You may have more power than you think. Leverage factors include:

• Long tenure or high-level role
  
  
• Pending commissions, bonuses, or stock
  
  
• Knowledge of internal operations or sensitive data
  
  
• Possible legal claims (e.g., discrimination, retaliation)
  
  

Use this leverage to justify your request for improved terms or additional compensation.

✅ 4. Ask for More Severance Pay

You can request:

• More weeks of pay
  
  
• A lump-sum payout instead of installments
  
  
• Payment for unused vacation or PTO
  
  
• Compensation for lost bonuses or commissions
  
  

Be prepared to justify your request—reference your years of service, performance, or leadership.

✅ 5. Negotiate Benefits and Insurance

Ask for:

• Continued COBRA premiums paid by the employer
  
  
• 401(k) matching for a defined period
  
  
• Extension of stock options or vesting rights
  
  
• Outplacement services or career coaching
  
  

These benefits can add real value to your transition.

✅ 6. Modify Restrictive Clauses

Look closely at:

• Non-compete clauses – Negotiate duration and geographic limits
  
  
• Non-disparagement – Ask for mutual language (so the employer can’t speak negatively about you either)
  
  
• Confidentiality – Ensure you can disclose terms to family or financial advisors
  
  

A severance pay lawyer from The Lange Firm can help revise these clauses to protect your future.

✅ 7. Negotiate Legal Fees (If Appropriate)

Some companies are willing to reimburse legal costs for reviewing severance—especially for executives or professionals. Always ask.

✅ 8. Get Everything in Writing

Don’t rely on verbal promises. Once you’ve agreed to new terms, ensure the final document reflects every change you’ve negotiated.

What If You Feel Pressured to Sign?

Don’t let an employer rush or intimidate you. Politely ask for time to consider your options or consult with a lawyer.

📞 The Lange Firm offers fast turnaround for severance reviews—often within 24 to 48 hours.

Why Work with The Lange Firm?

At The Lange Firm, we provide:

• Expert severance agreement review
  
  
• Strategic negotiation support
  
  
• Identification of hidden risks and restrictions
  
  
• Protection against signing away valuable rights
  
  
• Flat-fee or contingency-based services in many cases
  
  

We’ve helped countless Texas employees—from hourly workers to C-suite executives—walk away with better severance packages and fewer legal regrets.

Final Thoughts

So, how do you negotiate a severance package? Start by knowing your rights, understanding your leverage, and refusing to rush. With the help of a skilled attorney, you can secure better compensation, maintain your career momentum, and protect your reputation.

✅ Before you sign anything, contact The Lange Firm. We’ll help you negotiate smarter and exit stronger.