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Severance Agreement

Draft Compliant Severance Agreements in Minutes

12 minutes with CaseMark

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Severance Agreement

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Severance Agreement

Overview

CaseMark's Severance Agreement skill generates comprehensive, litigation-resistant employment separation agreements tailored to your specific jurisdiction and circumstances. The AI produces fully drafted agreements incorporating OWBPA-compliant releases, DTSA confidentiality protections, enforceable restrictive covenants, and NLRA-safe non-disparagement clauses—all in a fraction of the time manual drafting requires.

Drafting severance agreements is one of the most error-prone tasks in employment law. A single missed OWBPA requirement, an overbroad non-disparagement clause, or a restrictive covenant that violates state law can render the entire release unenforceable—exposing the employer to the very claims the agreement was designed to resolve. Manual drafting requires attorneys to cross-reference multiple federal and state statutes for every agreement, consuming hours of billable time.

CaseMark automates the drafting of severance agreements by combining your specific deal terms with a deep understanding of federal and state employment law requirements. The AI generates a complete, jurisdiction-tailored agreement with all required statutory provisions, consideration periods, and compliance safeguards built in—letting attorneys focus on strategy and negotiation rather than boilerplate assembly.

How it works

  1. 1. Upload existing employment documents, employee details, and desired separation terms

  2. 2. AI analyzes jurisdiction-specific requirements, OWBPA applicability, and existing contractual obligations

  3. 3. Review the fully drafted severance agreement with state-compliant provisions and statutory safeguards

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

What you get

  • Parties and Effective Dates

  • Severance Package Terms

  • Release of Claims

  • Confidentiality Obligations

  • Restrictive Covenants

  • Non-Disparagement Provisions

  • OWBPA Compliance Provisions

  • Property Return and Ongoing Obligations

  • Clawback and Breach Remedies

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-aligned confidentiality obligations with whistleblower carve-outs

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

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

  • Automated clawback and breach provisions compliant with state wage payment laws

Required documents

  • Employee Information Sheet

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

    .pdf, .docx, .txt

  • Separation Terms Summary

    Desired severance package details including payment amount, structure, COBRA terms, equity treatment, and any special conditions

    .pdf, .docx, .txt

Supporting documents

  • Offer Letter

    Original employment offer letter to reference existing terms and obligations

    .pdf, .docx

  • Existing NDA or PIIA

    Current non-disclosure or proprietary information and inventions agreement to incorporate or supersede

    .pdf, .docx

  • Non-Compete Agreement

    Existing non-compete or non-solicitation agreement to align with or modify in the severance terms

    .pdf, .docx

  • Equity Plan Documents

    Stock option or equity incentive plan documents for accurate treatment of vested and unvested equity

    .pdf, .docx

  • RIF Decisional Unit Data

    For group layoffs: demographic and positional data 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 the legal rigor required for enforceability

Minimize litigation risk with automatically applied statutory compliance checks for OWBPA, DTSA, NLRA, and state-specific employment laws

Ensure consistency across multiple separation agreements during group layoffs or organizational restructurings

Adapt instantly to jurisdiction-specific requirements including mandatory PTO payouts, restrictive covenant enforceability standards, and wage payment law constraints

Questions

Does the AI handle OWBPA requirements for employees over 40?

Yes. CaseMark automatically detects when OWBPA applies based on the employee's age and whether the separation is individual or part of a group RIF. It generates the correct 21-day or 45-day consideration period, the 7-day revocation window, and all required statutory disclosures.

How does CaseMark handle state-specific employment laws?

CaseMark tailors each agreement to the employee's work and residence states. This includes mandatory PTO payout requirements (e.g., California, Colorado, Illinois), state wage payment law restrictions on clawbacks, and jurisdiction-specific enforceability standards for restrictive covenants.

Can the agreement be used for group layoffs or 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 demographic data. You can generate consistent agreements across an entire affected group.

Are the non-disparagement clauses compliant with recent NLRB guidance?

Yes. CaseMark generates non-disparagement provisions that are carefully crafted to comply with NLRA Section 7 protections and recent NLRB rulings, ensuring employees retain their protected concerted activity rights while still providing meaningful reputational safeguards for the employer.

How does CaseMark handle confidentiality provisions under the DTSA?

CaseMark drafts confidentiality obligations aligned with the Defend Trade Secrets Act, including the required whistleblower immunity notice under 18 U.S.C. § 1833(b). The provisions protect trade secrets and proprietary information while preserving the employee's right to report potential violations to government agencies.

Can I customize the severance package structure?

Yes. CaseMark supports lump-sum and installment payment structures, COBRA subsidies, equity acceleration, outplacement services, and bonus proration. You specify the terms and CaseMark drafts the corresponding provisions with appropriate payment conditions and compliance safeguards.

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