Losing a job is never easy, and being presented with a severance agreement can add even more pressure during an already stressful time. Many employees feel rushed to sign whatever paperwork their employer offers, especially when it includes promises of additional pay. However, signing a severance agreement without fully understanding it could lead to serious consequences. If you’ve been offered one, it’s smart to consult a Las Vegas employment lawyer before you sign. Here's what you need to know about severance agreements in Las Vegas—and why careful review is crucial.

What Is a Severance Agreement?

A severance agreement is a contract between an employer and an employee that typically offers some form of compensation in exchange for the employee agreeing to certain terms. These agreements often include:

A lump-sum payment or continued salary for a set period

Payment for unused vacation time or sick leave

Continuation of health insurance benefits (COBRA)

Job placement assistance or other transition services

In return, the employee usually must agree to:

Waive any legal claims against the employer

Maintain confidentiality about the terms of the agreement

Avoid disparaging the employer

Sometimes, agree to non-compete or non-solicitation clauses

While severance pay might feel like a gift, the fine print in these agreements often strongly favors the employer. That's why speaking to a Las Vegas employment lawyer before you sign is essential.

Is Severance Pay Required by Law in Nevada?

In most cases, no. Nevada employers are not legally required to offer severance pay when they terminate an employee unless:

A written contract or company policy promises it, or

The employer and employee negotiate a severance agreement at the time of termination.

Because severance is generally voluntary, employers often attach conditions to the payout—such as requiring the employee to release any potential claims. That means you could be giving up your right to sue for wrongful termination, unpaid wages, discrimination, or other legal violations.

A Las Vegas employment lawyer can help you determine whether the offer is fair and whether you are giving up valuable rights by signing.

Key Terms to Watch for in a Severance Agreement

Before signing anything, you should review these common (and sometimes risky) clauses:

1. Release of Claims

Most severance agreements ask you to waive your right to sue for anything that happened during your employment. This can include claims you didn’t even know you had, such as discrimination, harassment, unpaid overtime, or retaliation.

2. Non-Disclosure and Confidentiality

Employers often want to protect sensitive company information. However, confidentiality clauses sometimes go too far, potentially restricting your ability to discuss workplace wrongdoing or even your own experiences.

3. Non-Disparagement Clauses

You may be prohibited from speaking negatively about your former employer. Violating this term could cost you the severance money—or even trigger a lawsuit.

4. Non-Compete and Non-Solicitation Agreements

Some severance agreements attempt to limit your ability to work for competitors or contact former clients or coworkers. Nevada law restricts unreasonable non-compete clauses, but the language can still cause problems for your future career. A skilled Las Vegas employment lawyer can help you spot problematic language and negotiate better terms if needed.

Should You Negotiate a Severance Agreement?

Absolutely. Many employees don’t realize that severance agreements are often negotiable. You don’t have to accept the first offer you receive.

Common points for negotiation include:

Increasing the severance payment

Extending health benefits

Removing or softening non-compete clauses

Expanding references or positive recommendations

Modifying overly broad confidentiality or non-disparagement clauses

Your bargaining power may depend on several factors, such as your length of service, your role in the company, and whether you have potential legal claims you could bring against your employer. A Las Vegas employment lawyer can help you assess your leverage and negotiate a better outcome.

Can You Still Sue After Signing a Severance Agreement?

In most cases, no. Severance agreements typically contain a release of claims, which bars you from suing your employer for issues that occurred before the agreement was signed. There are exceptions in some cases:

You generally cannot waive future claims (such as future discrimination).

Some rights, like filing a charge with the Equal Employment Opportunity Commission (EEOC), cannot legally be waived—even if you sign a severance agreement.

However, getting your severance money and later suing for old workplace issues is usually not possible if you have signed a valid release. That's why it’s critical to talk to a Las Vegas employment lawyer before agreeing to anything.

How Much Time Do You Have to Decide?

Federal law requires employers to give certain employees at least 21 days to review a severance agreement if it involves a waiver of age discrimination claims under the Older Workers Benefit Protection Act (OWBPA). This protection applies to employees aged 40 and older. Even if this rule doesn’t apply to you, most reputable employers will give you at least a few days to review the agreement. You should never feel pressured to sign immediately. If you need more time, a lawyer can often help request an extension.

Why You Should Contact a Las Vegas Employment Lawyer

Severance agreements are legally binding contracts that can have long-lasting effects on your rights, finances, and career. Employers have lawyers looking out for their interests—you deserve someone looking out for yours, too.

A Las Vegas employment lawyer can:

Review your severance agreement for unfair terms

Identify hidden risks you might overlook

Help negotiate for better terms

Ensure you understand your rights before signing

Taking a severance package may be the right move for you, but you should make that decision with full knowledge and protection—not under pressure.

Conclusion

Severance agreements can offer valuable support during a tough transition, but they are often written to benefit employers, not employees. Before you sign away important rights, consult an experienced Las Vegas employment lawyer who can help you understand the real impact of the agreement and fight for terms that serve your best interests. Getting legal advice now can save you from headaches—and regrets—later.