
In Washington State, how do employer severance/separation agreements typically limit an employee’s right to pursue claims of employment discrimination against the employer? Here’s my point of view.
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Severance Agreements and Employment Discrimination (WA State)
When a job ends suddenly, employers often move quickly to present a severance or separation agreement. These documents can look routine — even generous — especially when you’re under financial pressure. But in Washington State, severance agreements often require you to give up significant legal rights, including the ability to bring discrimination, retaliation, or wrongful‑termination claims under the Washington Law Against Discrimination (WLAD); bring associated WA State common‑law claims; and bring similar federal statutory claims against the employer.
Before you sign anything, it’s important to understand what you may be giving up — and what you might lose if you don’t sign.
What a Severance Agreement Actually Does
A severance agreement is not just a paycheck. It’s a binding contract typically drafted by the employer’s lawyers. In relation to claims of employment discrimination (and related claims), those contracts often contain a plurality of restrictive provisions requiring the employee‘s agreement, such as the following:
• Release the employer from all claims, whether you know about them or not
• Waive rights under, inter alia, Washington Law Against Discrimination (WLAD), Title VII of the Civil Rights Act of 1964, ADA, ADEA, and Washington common law
• Keep the terms confidential
• Avoid criticizing the employer
• Accept limits on future employment or communication
These agreements are designed to protect the company. They are not written with your interests in mind.
Why Signing Too Quickly Can Be Risky
You May Be Waiving Claims Worth Far More Than the Severance
If you were treated unfairly, pushed out after reporting misconduct, denied accommodations, or terminated shortly after taking protected leave (or after engaging in other protected activities), you might have legal claims with substantial value. WLAD and WA State common law allows recovery for, inter alia, lost wages, emotional harm, and attorney’s fees — often far exceeding the severance amount.
You Might Not Realize You Have a Claim
Many employees don’t know that:
• Washington’s disability and pregnancy* protections are broader than federal law
• Retaliation can occur even after a single complaint
• Hostile work environment claims can develop gradually
• Timing matters — terminations following medical leave or accommodation requests are often scrutinized
These are just a sample of potentially unrealized issues–not obvious at first glance–that a lawyer can help you identify.
Once You Sign, You MIGHT NOT BE ABLE TO Go Back
Most releases are final. Even if new facts emerge or you later realize you had a strong case, the agreement might prevent you from pursuing it.
The Other Side of the Decision: What If You Don’t Sign?
It’s important to acknowledge the real trade‑off. If you decline the severance and pursue discrimination or retaliation claims instead, there is always a possibility that:
• Your claims don’t succeed
• The evidence isn’t strong enough
• The case settles for less than the severance — or not at all
If that happens, the severance offer is typically gone for good. Employers rarely re‑extend the same deal once it’s rejected. This is why understanding the strength of your claims — and the fairness of the offer — before the deadline to sign can be essential before making a decision.
Why Promptly Talking to an Attorney First Makes a Difference
You Get a Clear Picture of Your Rights
An employment lawyer can help you evaluate whether the severance amount is reasonable compared to the potential value of your employment-discrimination claims and can flag problematic or overly broad terms.
You May Be Able to Negotiate Better Terms
Employees who seek legal advice/representation might be able to secure:
• Higher severance payments
• More favorable confidentiality or non‑disparagement language
• Neutral references
• Narrower releases
• Extended benefits
Employers often anticipate negotiation — and they might take represented employees more seriously.
You Protect Your Future Employment Options
Some agreements include non‑compete or non‑solicitation clauses that can affect your next job. A lawyer may be able to help you avoid signing something that limits your career.
You May Not Have to Decide on the Spot
Even if your employer sets a short deadline to sign the agreement, you might be able request more time. There may also be other related protections if both (1) the release includes a waiver of U.S. Age Discrimination in Employment Act (ADEA) age-discrimination claims; and (2) the employee is 40 or older. Talk to an attorney first to learn more.
Conclusion
Signing a severance agreement is a decision that deserves careful thought. These contracts often require employees to give up important legal claims, while declining them can mean losing compensation that won’t be offered again. Because both choices carry real consequences, getting advice from an employment attorney before you commit can help you understand your options and choose the path that best protects your related rights.
IMPORTANT: The potential outcomes discussed herein are not guaranteed and the outcome of any particular case may vary significantly and unexpectedly from the same; consult with an attorney first both to discuss the specific details of your case and to learn more.
LEARN MORE
If you would like to learn more, then consider contacting an experienced employment attorney to discuss your case. This article is not offered as legal advice and will not establish an attorney-client relationship with Law Office of Gregory A. Williams or the author of this article; please refer to our Disclaimer | Terms of Use | Privacy Policy for more information.
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