Do I have to sign a severance agreement in California?

No. Severance is a voluntary exchange — payment for a release of legal claims — and California employers are not required to offer it. Government Code section 12964.5 requires notice of the right to consult an attorney and at least five business days to consider, and limits terms that silence reports of unlawful conduct.

No law requires severance in California, and no law requires signing what is offered; severance is a contract — money the employer does not otherwise owe in exchange for a release of claims the employee might bring. Statutes police the terms. Under Government Code section 12964.5, an employer offering a separation agreement must notify the employee of the right to consult an attorney and allow at least five business days to consider it, and the agreement cannot prohibit disclosing information about unlawful acts in the workplace, such as harassment or discrimination. A release cannot cover unwaivable rights: an employer cannot condition payment of wages already earned on signing one (Labor Code section 206.5), and unemployment benefits cannot be bargained away. Workers 40 and older releasing federal age claims get 21 days to consider (45 in group layoffs) and seven days to revoke under the federal Older Workers Benefit Protection Act. Evaluate what is being released before evaluating the amount.

Authority: Cal. Gov. Code § 12964.5