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Severance Agreement

Draft Severance Agreements in Minutes, Not Hours

12 minutes with CaseMark

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Severance Agreement

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Severance Agreement

Overview

CaseMark's Severance Agreement skill drafts comprehensive, litigation-resistant employment separation agreements that combine statutory-compliant releases of claims with confidentiality protections and post-employment obligations. The AI handles the complex interplay of federal requirements (OWBPA, ADEA, DTSA, NLRA) and state-specific employment laws to produce agreements tailored to each separation scenario.

Drafting severance agreements requires navigating a complex web of federal statutes (OWBPA, ADEA, DTSA, NLRA) and state-specific employment laws that vary dramatically by jurisdiction. A single compliance error—a missed revocation period, an overbroad non-disparagement clause, or an unenforceable non-compete—can render the entire release void and expose the employer to significant litigation risk.

CaseMark automates the drafting of fully compliant severance agreements by analyzing employee details, jurisdiction-specific requirements, and separation context to produce comprehensive agreements with properly scoped releases, enforceable restrictive covenants, and NLRA-safe provisions. The result is a litigation-resistant document that would take an experienced employment attorney hours to draft manually.

How it works

  1. 1. Provide employee details, severance terms, and any existing employment agreements

  2. 2. AI drafts a comprehensive separation agreement with jurisdiction-specific compliance

  3. 3. Review and customize release language, restrictive covenants, and payment structures

  4. 4. Export the finalized agreement in your preferred format (DOCX, PDF)

What you get

  • Parties and Effective Dates

  • Severance Package and Payment Terms

  • General Release of Claims

  • OWBPA-Specific Provisions

  • Confidentiality and Trade Secret Obligations

  • Restrictive Covenants and Non-Compete

  • Non-Disparagement Clause

  • Property Return and Transition Obligations

  • Clawback and Breach Remedies

  • Governing Law and Dispute Resolution

What it handles

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

  • Jurisdiction-tailored restrictive covenants and non-compete provisions

  • DTSA-compliant confidentiality obligations with whistleblower safe harbors

  • NLRA-safe non-disparagement clauses that withstand regulatory scrutiny

  • State-specific severance payment structures with wage law compliance

  • Comprehensive equity, COBRA, and benefits continuation provisions

Required documents

  • Employee Details

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

    .pdf, .docx, .txt

  • Severance Terms Summary

    Proposed severance package details including payment amount, structure, COBRA subsidy, outplacement, and benefits continuation terms

    .pdf, .docx, .txt

Supporting documents

  • Existing Employment Agreements

    Current offer letter, NDA, PIIA, non-compete, or indemnification agreements with the employee

    .pdf, .docx

  • Equity Plan Documents

    Stock option or equity incentive plan documents detailing vesting schedules and exercise periods

    .pdf, .docx

  • RIF Decisional Unit Data

    For group terminations: job titles, ages, and selection criteria for the decisional unit as required by OWBPA

    .pdf, .docx, .xlsx

Why teams use it

Reduce severance agreement drafting time from hours to minutes while maintaining compliance across multiple federal and state regulatory frameworks

Eliminate common drafting errors that lead to unenforceable releases, including OWBPA timing miscalculations and NLRA-violating non-disparagement clauses

Automatically adapt restrictive covenants, payment structures, and clawback provisions to the specific jurisdictions involved

Ensure consistent, defensible separation agreements across your organization whether handling individual terminations or large-scale RIFs

Questions

How does CaseMark handle OWBPA compliance for employees over 40?

CaseMark automatically detects age-based requirements and includes the proper 21-day (individual) or 45-day (group RIF) consideration periods, the 7-day revocation window, and all statutory disclosure language required by the Older Workers Benefit Protection Act.

Does the agreement account for state-specific employment laws?

Yes. CaseMark tailors provisions based on the employee's work and residence states, including mandatory PTO payout requirements (e.g., California, Colorado, Illinois), state-specific non-compete enforceability rules, and wage payment law restrictions on clawback provisions.

Can I use this for group reductions in force (RIFs)?

Absolutely. CaseMark adjusts the agreement for group termination scenarios, including the extended 45-day OWBPA consideration period and the required decisional unit disclosure with job title and age demographic information.

How does CaseMark ensure non-disparagement clauses comply with the NLRA?

CaseMark drafts non-disparagement provisions that are carefully scoped to avoid restricting employees' Section 7 rights under the National Labor Relations Act, consistent with recent NLRB guidance on severance agreement enforceability.

What confidentiality protections are included?

The agreement includes DTSA-compliant trade secret protections with required whistleblower immunity notices, along with customizable confidentiality obligations covering proprietary information, customer data, and the terms of the agreement itself.

Can I customize the severance payment structure?

Yes. CaseMark supports lump-sum payments, installment schedules, COBRA subsidies, equity acceleration, bonus proration, and outplacement services. All payment terms are conditioned on execution, revocation period expiration, and ongoing compliance.

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