Severance Agreement

Draft Severance Agreements in Minutes, Not Hours

12 minutes with CaseMark

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12 minutes with CaseMark

What you'll need

Employment Agreement or Offer Letter
Separation Details Summary

SOC 2 Type II · HIPAA compliant · $5 free credit

Workflow

Overview

CaseMark's Severance Agreement skill drafts comprehensive, litigation-resistant employment separation agreements that combine statutory-compliant releases of claims with robust confidentiality protections and enforceable post-employment obligations. The AI produces jurisdiction-specific agreements that address OWBPA requirements, DTSA confidentiality standards, state wage payment laws, and current NLRB guidance on non-disparagement provisions.

Drafting severance agreements is one of the most error-prone tasks in employment law. A single missed OWBPA requirement, an overly broad non-disparagement clause, or a non-compete provision that violates state law can render the entire release unenforceable—exposing employers to the very claims they sought to resolve. Manually tracking the patchwork of federal and state requirements across jurisdictions consumes hours of attorney time for each separation.

CaseMark automates the drafting of severance agreements by combining your specific deal terms with built-in compliance logic for OWBPA, DTSA, NLRA, and state employment laws. The AI generates a complete, customized agreement that accounts for the employee's age, work state, termination context, and existing contractual obligations—delivering a polished, enforceable document ready for attorney review and finalization.

How it works

1. Upload existing employment documents such as offer letters, NDAs, and non-compete agreements
2. Provide employee details, termination context, and desired severance terms
3. AI drafts a comprehensive, jurisdiction-specific severance agreement with full statutory compliance
4. Review, customize, and export the finalized agreement (DOCX, PDF)

What you get

Parties and Effective Date Provisions
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
General Provisions and Governing Law

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 trade secret protections
Jurisdiction-tailored restrictive covenants including non-compete and non-solicitation
NLRA-safe non-disparagement clauses that withstand regulatory scrutiny
Automated clawback and payment conditioning provisions with state wage law guardrails

Required documents

Employment Agreement or Offer Letter
The original employment agreement or offer letter establishing the employment relationship, compensation terms, and any existing restrictive covenants
.pdf, .docx
Separation Details Summary
A summary of employee information (name, age, position, hire/termination dates, work state), termination context (individual or RIF), and proposed severance terms (payment amount, COBRA, equity treatment)
.pdf, .docx, .txt

Supporting documents

Existing NDA or PIIA
Any existing non-disclosure, proprietary information, or invention assignment agreements to be referenced or incorporated into the severance agreement
.pdf, .docx
Non-Compete or Non-Solicitation Agreement
Existing restrictive covenant agreements that may need to be reaffirmed, modified, or superseded in the separation agreement
.pdf, .docx
Equity Plan Documents
Stock option, RSU, or other equity plan documents governing the treatment of vested and unvested equity upon termination
.pdf, .docx
Company Separation Policy
Internal company policies or guidelines governing severance benefits, COBRA subsidies, and separation procedures
.pdf, .docx

Why teams use it

Reduce drafting time from hours to minutes while maintaining the legal rigor required for enforceable separation agreements

Minimize litigation risk with automatically applied OWBPA compliance, proper consideration and revocation periods, and comprehensive release language

Ensure state-specific accuracy with jurisdiction-tailored restrictive covenants, mandatory PTO payout rules, and wage law-compliant clawback provisions

Stay current with evolving employment law standards including NLRA-safe non-disparagement clauses and DTSA whistleblower immunity notices

Questions

How does CaseMark ensure OWBPA compliance for employees over 40?

CaseMark automatically detects age-related requirements and includes the proper 21-day or 45-day consideration periods, 7-day revocation windows, and all mandatory OWBPA disclosures. For group reductions in force, CaseMark generates the required decisional unit and eligibility data tables.

Does the agreement account for state-specific employment laws?

Yes. CaseMark tailors provisions to 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 layoffs or reductions in force?

Absolutely. CaseMark supports both individual separations and group RIF scenarios, automatically adjusting OWBPA consideration periods from 21 to 45 days and prompting for the required statistical disclosures about affected and retained employees.

How does CaseMark handle non-disparagement clauses after the NLRB's McLaren Macomb decision?

CaseMark generates NLRA-safe non-disparagement provisions that avoid overly broad restrictions on protected concerted activity. The clauses are drafted to be enforceable while respecting employees' Section 7 rights under current NLRB guidance.

What confidentiality protections are included?

CaseMark incorporates DTSA-compliant confidentiality obligations, including the required immunity notice for whistleblower disclosures. The agreement covers trade secrets, proprietary information, and the terms of the separation itself where legally permissible.

Can I customize the severance package structure?

Yes. CaseMark allows you to specify lump sum or installment payments, COBRA subsidy duration, equity treatment, outplacement services, and bonus proration. All payment terms are conditioned on proper execution and revocation period expiration.