Can I Negotiate My Severance Agreement in Virginia?

 Posted on February 11, 2026 in Employment Law

So your employer just handed you a severance agreement. Perhaps they’re telling you that it is standard and you should sign it quickly. They might even suggest that everyone gets the same package and there is nothing to discuss. 

This is almost never true. Severance agreements are negotiable, and you should treat them that way.

In 2026, Virginia remains an at-will employment state, which means employers can terminate most employees without cause. When they offer severance pay, they are not doing it out of generosity. They are buying something from you – usually your agreement not to sue them and your promise to keep certain information confidential. If they are asking you to give up legal rights, you have leverage to negotiate better terms.

An Alexandria, VA employment law attorney with Freedman Law, LLC can help you understand what you can negotiate and how to approach these conversations.

Is a Severance Agreement Required by Law in Virginia?

Virginia law does not require employers to provide severance pay when they terminate employees. Unless you have an employment contract that specifically promises severance, or your employee handbook creates a binding policy, your employer has no legal obligation to give you anything beyond your final paycheck for time worked.

This means severance agreements are voluntary arrangements. Your employer chooses to offer severance, and you choose whether to accept their offer. Because both sides are entering this arrangement voluntarily, both sides can negotiate the terms.

Employers offer severance for several reasons:

• They want you to sign a release giving up your right to sue for wrongful termination, discrimination, or other employment law violations. 
• They want you to agree to confidentiality terms that prevent you from discussing company information or the circumstances of your departure. 
• They may want you to sign a non-compete or non-solicitation agreement that limits where you can work next.

These packages vary widely based on position, length of service, and company practices. This variation itself shows that severance terms are flexible and negotiable.

What Can You Negotiate in a Virginia Severance Agreement?

Almost every aspect of a severance agreement is negotiable. 

Pay

The amount of severance pay is the most obvious term. Many employers start with one or two weeks of pay for each year of service, but you can ask for more based on your position, performance, and any potential legal claims you might have.

Payment Structure

Payment structure matters too. You can negotiate whether you receive a lump sum or continued salary payments over several months. Health insurance continuation is valuable since COBRA is expensive. Some employers will pay your COBRA premiums for a period as part of the package.

Reputation for Future References 

Negotiate what your employer will say when future employers call for references. Get agreement in writing about your job title, dates of employment, and eligibility for rehire. 

Non-Compete Agreements

Non-compete agreements and non-solicitation clauses can severely limit where you can work next. Under Virginia Code Section 40.1-28.7:8, non-compete agreements are limited to certain employees and behaviors. You can negotiate to narrow these restrictions or eliminate them entirely.

Stock Options and Bonuses

If you have unvested stock options or are owed a bonus, negotiate for accelerated vesting or pro-rated bonus payments. Many severance agreements try to forfeit these benefits, but everything is negotiable if you push back.

What Leverage Do Employees Actually Have in Severance Negotiations?

Your leverage depends on several factors. If you have potential legal claims against your employer for discrimination, harassment, wage violations, or wrongful termination, you have significant leverage. Employers offer severance partly to avoid litigation. If you can identify legitimate legal claims, your employer has a strong incentive to negotiate better terms.

Your position and institutional knowledge also create leverage. Senior employees with specialized knowledge or client relationships are harder to replace. Length of service matters too. Someone who worked for a company for 15 years deserves better treatment than someone who worked there for two years.

What Happens If I Refuse to Sign a Severance Agreement?

Refusing to sign does not prevent your termination. Your employer can still fire you. However, refusing to sign means you do not give up your right to sue or agree to restrictive covenants. You keep all your legal options open.

In some cases, refusing to sign leads to a better offer. Employers may sweeten the deal if they really want you to sign a release. In other cases, they withdraw the offer entirely and you receive nothing beyond your final paycheck. This is why understanding your leverage before making this decision is critical.

Can I Revoke a Severance Agreement After I Sign It?

For most employees, once you sign a severance agreement, it becomes binding immediately. You cannot change your mind later. However, if you are 40 years old or older, the Age Discrimination in Employment Act gives you special protections. Your employer must give you at least 21 days to consider the agreement and seven days after signing to revoke it.

Contact a Fairfax, VA Employment Attorney Today

Negotiating a severance agreement requires understanding what leverage you have and knowing which terms matter most for your situation. Employers have lawyers reviewing these agreements. You should too.

An Alexandria employment lawyer for employees can review your severance offer, identify problems or unfair terms, and negotiate improvements on your behalf. Call Freedman Law, LLC at 410-290-6232.