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Termination Package Negotiations in Texas: How to Protect Yourself and Get What You Deserve

If you’re being laid off, let go, or “asked to resign,” chances are your employer will offer you a termination package—also known as a severance agreement. But just because they hand you a document doesn’t mean you have to sign it.

In fact, termination package negotiations are often your last and best opportunity to advocate for your financial future, protect your legal rights, and leave on your own terms.

At The Lange Firm, we represent employees across Texas in severance and termination package negotiations, ensuring that your exit is fair, your benefits are maximized, and your employer doesn’t take advantage of you in a vulnerable moment. Here’s everything you need to know about the process.

What Is a Termination Package?

A termination package or severance agreement is a legal contract between you and your employer, offered at the end of your employment. It typically includes:

• A financial payout (severance pay)

• A release of claims (you agree not to sue)

• Details about final paycheck, benefits, and COBRA

• Terms of confidentiality and non-disparagement

• Possible non-compete or non-solicitation clauses

📌 Signing it may waive your rights to file future legal claims—so review it carefully or hire an attorney before signing.

Do You Have to Accept the First Offer?

No. You do not have to accept the first termination package offer.

In fact, the initial proposal is often low and designed to protect the employer—not you. You can and should negotiate for:

• More money

• Longer health coverage

• Better references

• Removal of restrictive clauses

• Payment for unused PTO or bonuses

📞 The Lange Firm helps Texas employees review and revise termination packages to ensure fairness.

Why Negotiating Your Termination Package Matters

This is your last chance to:

• Recover lost income

• Cover the gap between jobs

• Maintain health insurance

• Preserve your professional reputation

• Avoid future legal issues (e.g., non-compete enforcement)

Once you sign the agreement, it becomes legally binding. Don’t let the pressure to “move on” cost you thousands of dollars or future opportunities.

Key Elements in a Termination Package

Understanding the fine print is critical. Most termination packages include the following:

✅ 1. Severance Pay

A lump sum or several weeks’ salary—often based on years of service.

✅ 2. Release of Claims

You agree not to sue the company for any legal violations, including discrimination, retaliation, or wage claims.

✅ 3. Non-Disparagement Clause

You promise not to speak negatively about the company—even if they wronged you.

✅ 4. Non-Compete or Non-Solicit Provisions

You agree not to work for competitors or poach clients for a certain period.

✅ 5. COBRA and Benefits

Details about continuing your health insurance after termination.

✅ 6. References and Letters of Recommendation

Language that may help or harm your future job search.

What to Ask For During Negotiations

Here are some of the most common—and valuable—points to negotiate:

✅ 1. More Severance Pay

Ask for additional weeks or months of pay, especially if:

• You’ve been with the company a long time

• You’re over age 40 (protected class)

• You’re waiving significant claims

• You’re in an executive or leadership role

✅ 2. Extended Health Coverage

Request more months of COBRA payments or employer-subsidized insurance.

✅ 3. Positive Reference or Neutral Letter

Avoid vague or negative job separation language.

✅ 4. Waiver of Non-Compete

If you’re restricted from working in your industry, negotiate for release or reduction of that term.

✅ 5. Payment for Accrued Vacation or Bonuses

Ensure you’re compensated for time earned or goals met before termination.

Legal Red Flags in Severance Agreements

Some employers hide problematic clauses in dense legal language. Watch out for:

• Broad confidentiality clauses that restrict your ability to speak freely

• Gag orders that prevent you from discussing discrimination or harassment

• Overbroad non-competes that bar you from working in your entire field

• Waivers of future rights beyond normal scope

• Threats of “clawbacks” if you speak out or find a new job quickly

📌 These can seriously limit your post-termination freedom—and may be unenforceable. Let The Lange Firm review your agreement before signing.

When to Call a Termination Attorney

You should consult an attorney if:

• You’re being offered a severance package and feel pressured to sign

• You believe you were fired unfairly, discriminatorily, or in retaliation

• You’re asked to waive legal claims you don’t understand

• You’re unsure if your non-compete is enforceable

• You’ve been offered “hush money” to remain silent about illegal activity

Time is critical. Severance agreements often come with short deadlines—but attorneys can request extensions to give you time to evaluate your options.

How The Lange Firm Helps with Termination Package Negotiations

At The Lange Firm, we offer:

• Flat-fee reviews of severance agreements

• Negotiation services with your employer

• Claim evaluation for potential wrongful termination or retaliation

• Litigation representation if negotiations fail

• Strategic planning for your career transition

We work with employees across Texas—including executives, professionals, and hourly workers—in industries ranging from healthcare and education to energy, tech, and law.

📞 Contact us for a confidential review of your termination package today.

Common Mistakes to Avoid

1. Signing without reading the full document

2. Believing you have no room to negotiate

3. Assuming HR will explain everything accurately

4. Missing the deadline to file legal claims (like EEOC charges)

5. Failing to get promises in writing

Let The Lange Firm help you avoid costly missteps.

Final Thoughts

So what’s the takeaway on termination package negotiations?

✅ It’s your last chance to advocate for yourself and protect your legal rights
✅ You don’t have to accept the first offer
✅ And you don’t have to navigate it alone

At The Lange Firm, we know how to turn unfair exits into fair outcomes. Don’t sign anything until we review your options.

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