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Severance Agreement

Draft Compliant Severance Agreements in Minutes, Not Hours

12 minutes with Para

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Para is an AI colleague for legal teams. Send it this work by email, Teams or Slack, and it hands back the finished document.

12 minutes with Para

What you'll need

  • Employee Details
  • Severance Terms Summary

Plans from $20 a month, with usage included.

Workflow

Overview

CaseMark's Severance Agreement skill drafts comprehensive, litigation-resistant employment separation agreements tailored to U.S. federal and state law requirements. It combines a statutory-compliant release of claims, OWBPA-appropriate consideration and revocation periods, DTSA confidentiality protections, and jurisdiction-specific restrictive covenants into a single, ready-to-review document. Whether you're handling an individual termination or a large-scale reduction in force, this skill produces a polished agreement in minutes.

Drafting severance agreements is one of the most error-prone tasks in employment law. Each agreement must navigate a complex web of federal requirements (OWBPA, ADEA, DTSA, NLRA) and state-specific rules around non-competes, wage payments, and PTO payouts. A single oversight—a missing revocation period, an overbroad non-disparagement clause, or a non-compliant clawback provision—can render the entire release unenforceable and expose the employer to significant liability.

CaseMark automates the drafting of severance agreements by applying the correct federal and state-specific legal requirements based on the employee's age, location, and termination context. The AI generates a comprehensive, litigation-resistant agreement with properly structured release language, compliant consideration periods, and enforceable post-employment obligations—reducing drafting time from hours to minutes while minimizing the risk of costly errors.

How to hand this to Para

  1. 1. Send Para the files

    Email them, drop them in a Teams or Slack message, or upload them.

  2. 2. Para runs the Severance Agreement skill

    It works from your files and checks its citations against the record.

  3. 3. The finished document comes back

    Para returns it where you asked, usually as a DOCX, and offers the next step.

Example request · email, Teams or Slack
Para, run the Severance Agreement skill for the Garcia matter. I've attached the Employee Details and Severance Terms Summary. Send the finished draft back here as a DOCX.

What Para does

  1. 1. Upload employee details, severance terms, and any existing employment agreements
  2. 2. AI analyzes jurisdiction-specific requirements and generates a fully compliant severance agreement
  3. 3. Review and customize provisions including release scope, restrictive covenants, and payment structure
  4. 4. Export the finalized agreement in your preferred format (DOCX, PDF)

What you get

  • Parties and Effective Dates

  • Severance Package and Payment Terms

  • Comprehensive Release of Claims

  • OWBPA Compliance Provisions

  • Confidentiality and Trade Secret Obligations

  • Restrictive Covenants (Non-Compete, Non-Solicitation)

  • Non-Disparagement Clause

  • Property Return and Cooperation Obligations

  • Clawback and Breach Remedies

  • Acknowledgment and Signature Block

What it handles

  • OWBPA-compliant release of claims with age-appropriate consideration and revocation periods

  • State-specific severance package structuring including mandatory PTO payout and wage law compliance

  • DTSA-compliant confidentiality obligations with whistleblower immunity notice

  • Jurisdiction-tailored restrictive covenants including non-compete and non-solicitation provisions

  • NLRA-safe non-disparagement clauses aligned with current NLRB guidance

  • Automated individual vs. group RIF detection for proper OWBPA timing requirements

Required documents

  • Employee Details

    Employee information including full legal name, position, hire date, termination date, age, and work/residence state

    .pdf, .docx, .txt

  • Severance Terms Summary

    Proposed severance package details including payment amount, structure, COBRA subsidy, equity treatment, and other benefits

    .pdf, .docx, .txt

Supporting documents

  • Existing Employment Agreement

    Original offer letter or employment agreement with existing terms and conditions

    .pdf, .docx

  • NDA or PIIA

    Existing non-disclosure agreement or proprietary information and inventions assignment agreement

    .pdf, .docx

  • Non-Compete Agreement

    Any existing non-compete or non-solicitation agreement with the employee

    .pdf, .docx

  • Equity Plan Documents

    Stock option or equity incentive plan documents governing vesting and exercise terms

    .pdf, .docx

Why teams use it

Eliminate hours of manual drafting and legal research by generating fully compliant severance agreements with jurisdiction-specific provisions automatically applied

Reduce litigation risk with OWBPA-compliant release language, proper consideration and revocation periods, and NLRA-safe non-disparagement clauses

Ensure consistency across your organization's separation agreements while maintaining flexibility to customize terms for each employee's unique circumstances

Stay current with evolving employment law requirements including recent NLRB guidance on severance agreement provisions and state-specific non-compete restrictions

Questions

Does this handle OWBPA requirements for employees over 40?

Yes. CaseMark automatically detects whether the employee is 40 or older and applies the correct OWBPA provisions, including the 21-day consideration period for individual separations, the 45-day period for group RIFs, and the mandatory 7-day revocation window. It also generates the required decisional unit disclosures for group terminations.

How does CaseMark handle state-specific employment law variations?

CaseMark tailors the agreement to the employee's work and residence states, addressing mandatory PTO payout requirements (e.g., California, Colorado, Illinois), state-specific non-compete enforceability rules, wage payment law restrictions on clawback provisions, and jurisdiction-appropriate governing law and venue clauses.

Can I use this for group layoffs or reductions in force?

Absolutely. CaseMark supports both individual separations and group RIF scenarios. For group terminations, it applies the extended 45-day OWBPA consideration period and generates the required decisional unit information, including job titles and ages of affected and retained employees.

Are the non-disparagement clauses compliant with NLRB guidance?

Yes. CaseMark drafts non-disparagement provisions that are carefully structured to comply with current NLRA protections, ensuring employees retain their Section 7 rights to engage in protected concerted activity. This reflects the latest NLRB rulings on overbroad severance agreement provisions.

Does the agreement include DTSA whistleblower immunity notices?

Yes. CaseMark automatically includes the Defend Trade Secrets Act immunity notice required under 18 U.S.C. § 1833(b), which must be provided in any agreement governing confidentiality of trade secrets or other confidential information to preserve the employer's right to seek exemplary damages and attorney fees.

Can I customize the severance payment structure?

CaseMark supports flexible payment structures including lump sum payments, installment schedules, COBRA subsidies, equity acceleration, bonus proration, and outplacement services. All payment terms are conditioned on agreement execution, revocation period expiration, and ongoing compliance with post-employment obligations.

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