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5 Reasons Why You Should Have an Attorney Review Your Severance Agreement in Nevada

Parting ways with your employer can be a challenging and emotional experience. When offered a severance agreement or package, it can seem like a lifeline, providing financial security during a period of uncertainty. However, before you hastily accept the terms, it is crucial to recognize that these agreements are complex legal contracts with far-reaching implications.

This article will outline five compelling reasons why you should consider seeking legal counsel to review your severance agreement or package in the state of Nevada.

One of the most compelling reasons to have an attorney review your severance agreement is the intricate legal language that typically fills these documents. Legal jargon can be baffling to individuals who lack legal training, making it easy to overlook critical terms and conditions that may impact your rights and obligations.

Severance agreements often include clauses related to non-disparagement, non-compete, non-solicitation, confidentiality, and more. Failing to comprehend the implications of these provisions can have adverse consequences down the road. A seasoned attorney can decipher the legalese and explain in plain language what each term means, ensuring you have a clear understanding of your rights and obligations under the agreement.

Protecting Your Claims and Potential Value

It’s essential to remember that employers typically offer severance agreements to protect themselves from potential legal claims. By accepting a severance package, you may be required to release your employer from any current and future claims you might have, including claims that could be worth significantly more than the severance offered.

As the saying goes, “If it was a good deal, they typically wouldn’t be offering it to you.” Employers often calculate the value of the severance package to be less than the potential legal liability they could face. An experienced attorney can assess the strength of your claims and help you negotiate a more favorable agreement that fully protects your interests.

Managing Tax Consequences

Tax implications can be a substantial concern when it comes to severance agreements. The way severance pay is structured and taxed can vary depending on the terms of the agreement. A poorly structured severance package could lead to unexpected tax liabilities that erode the financial benefits you anticipated.

An attorney well-versed in tax law or a CPA can help you structure your severance agreement in a tax-efficient manner, ensuring that you minimize your tax liability and maximize the value of your severance package. They can also provide guidance on any tax reporting requirements associated with the agreement.

Avoiding Costly Violations

Once you’ve accepted a severance package, you are legally bound to adhere to the terms and conditions outlined in the agreement. Failure to do so can result in serious consequences, including legal action and potential damages. Unfortunately, many employees unknowingly violate these agreements because they don’t fully grasp the restrictions imposed by the terms.

An attorney can provide essential guidance on what you can and cannot say or do after accepting the severance package. They can help you navigate the complexities of non-disparagement, non-compete, and non-solicitation clauses to ensure you stay in compliance and avoid costly legal disputes.

Safeguarding Your Rights

When negotiating or reviewing a severance agreement, it’s essential to remember that these documents are not one-size-fits-all. Each agreement should be tailored to your specific circumstances, considering factors such as your tenure, role, and potential claims.

An attorney can advocate on your behalf to secure the most favorable terms possible. They can negotiate for additional benefits, extended healthcare coverage, or other perks that may be crucial to your financial security during the transition period.

Ways to Negotiate a Better Severance Package

Negotiating a better severance package can significantly impact your financial security during a transition period. While employers often present initial offers as non-negotiable, there are several strategies you can employ to improve the terms of your severance agreement. Here are some effective ways to negotiate a better severance package:

  1. Assess the Offer Carefully: Before entering negotiations, thoroughly review the initial offer. Understand the terms, benefits, and any restrictions. Identify areas where you believe the agreement could be improved.
  2. Consult an Attorney: As mentioned earlier, seeking legal counsel is essential. An experienced employment attorney can evaluate the strength of your claims, provide insights into the potential value of your case, and guide you through the negotiation process.
  3. Highlight Your Value: Emphasize your contributions to the company and your tenure. Explain how your skills and experience have positively impacted the organization. Demonstrating your value can make the employer more willing to offer favorable terms.
  4. Identify Specific Concerns: If there are clauses or terms in the severance agreement that you find problematic, articulate your concerns clearly and professionally. Explain why you believe certain provisions need adjustment to protect your interests.
  5. Negotiate Additional Benefits: Consider negotiating for additional benefits beyond monetary compensation. For example, you might request an extension of healthcare coverage, continued access to certain company resources, or assistance with job placement services.
  6. Counter with Reasonable Requests: When making counteroffers, ensure they are reasonable and grounded in your unique circumstances. Being overly aggressive in your demands can hinder productive negotiations.
  7. Leverage Your Leverage: If you possess leverage in the negotiation process, such as critical skills, knowledge, or information that could benefit the employer, use it strategically. Employers may be more inclined to meet your requests if they perceive your cooperation as valuable.
  8. Be Prepared to Walk Away: Sometimes, the best negotiation tactic is the willingness to walk away if the terms are not favorable. Make it clear that you are open to exploring other options, such as pursuing legal action, if the severance package does not adequately address your concerns.
  9. Stay Professional and Respectful: Maintain a professional and respectful tone throughout the negotiation process. Building a constructive dialogue with your employer can improve the likelihood of reaching a mutually beneficial agreement.
  10. Document All Communication: Keep a record of all written and verbal communication related to the negotiation. This documentation can be valuable if any disputes arise later.
  11. Consider a Confidentiality Agreement: If you possess sensitive information about the company, you can propose signing a confidentiality agreement as part of the severance package. In exchange for your commitment to confidentiality, negotiate for improved terms.
  12. Seek a Severance Package Template: Some companies use standard severance agreement templates. Request a copy of the template, and work with your attorney to identify areas where modifications can be made to better suit your needs.
  13. Take Your Time: Avoid rushing through the negotiation process. Request additional time to review and consider the terms. This can prevent you from making hasty decisions that may not be in your best interest.

In conclusion, negotiating a better severance package is a crucial step in safeguarding your financial well-being during a period of job transition. By carefully assessing the initial offer, seeking legal counsel, and employing effective negotiation strategies, you can increase your chances of securing more favorable terms that address your unique needs and concerns. Remember that patience, professionalism, and a clear understanding of your value are key elements in achieving a successful negotiation outcome.


In the state of Nevada, as in many other jurisdictions, it is strongly advisable to consult with an attorney before accepting or signing a severance agreement. The complexities of these legal documents, the potential value of your claims, tax considerations, compliance with agreement terms, and safeguarding your rights are all compelling reasons to seek professional legal guidance.

Remember, while a severance package may provide temporary financial relief, the long-term consequences of a poorly negotiated or misunderstood agreement can be significant. An experienced attorney can help you navigate the intricacies of severance agreements, ensuring that you make informed decisions that protect your interests and rights during this challenging period of your career.

If you need someone to review your severance agreement, contact The Bourassa Law Group for a free consultation at 800-870-8910. Our capable attorneys in Nevada will discuss your case and use their expertise and resources to obtain the severance you deserve.  

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