Guides

Severance agreements: what Washington whistleblowers should know before signing

If you have raised concerns at work and your employer is now offering a severance agreement, treat it as one of the most important documents you will ever sign. This guide explains what these agreements typically do, what you may be giving up, and what to look for before signing.

What a severance agreement actually does

A severance agreement is a contract. In exchange for a payment (and sometimes continued benefits), you typically agree to release legal claims against the employer. Most agreements are written broadly enough to cover whistleblower and retaliation claims you may not have known you had.

The claims you may be releasing

Common claims released by severance agreements include wrongful termination, retaliation, discrimination, wage-and-hour claims, and tort claims like defamation. Some claims cannot be released even by agreement — for example, the right to file a charge with the EEOC, the SEC whistleblower award program (under Dodd-Frank), or to receive a False Claims Act qui tam award.

OWBPA: the 21/7 rule for workers 40 and older

If you are 40 or older and the agreement releases age-discrimination claims, the federal Older Workers Benefit Protection Act requires the employer to give you at least 21 days to consider the agreement and 7 days after signing to revoke. In a group layoff, the consideration period is 45 days. Employers cannot lawfully shorten these windows.

What to look for before signing

Read carefully for: the scope of the release, non-disparagement clauses, confidentiality and NDA terms (which now have important federal limits under the Speak Out Act and the SEC's Rule 21F-17), non-compete and non-solicit terms, return-of-property provisions, and references and characterization of the separation. Each of these is usually negotiable.

Negotiation leverage

Whistleblowers often have more leverage than they realize. Employers offering a severance agreement to someone who recently raised concerns are typically aware of legal exposure. The amount, the scope of the release, and the surrounding terms are often negotiable — but only before you sign.

Practical next step

Have the agreement reviewed by counsel before the deadline. See the Contact page to request a confidential review, and the Washington State Whistleblower Law Guide for the broader legal context.

This article is general legal information, not legal advice.

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