How to Negotiate a Severance Agreement in Minnesota

6/1/2026

Losing a job is stressful enough. Then your employer slides a severance agreement across the table or into your inbox, and you’re asked to decide whether to sign away your legal rights in exchange for a few weeks’ pay.

Here’s what Minnesota employees need to know before they sign anything.

You don’t have to sign right away.

First, take a breath. A severance agreement is a contract, and you have time to review it. Under federal law, employees over 40 years old are entitled to 21 days to review their severance agreement, 45 days if there is a group layoff. Under Minnesota law, you usually have a right to revoke your signature within 15 days of signing. So, don’t let anyone rush you. An employer pushing you to hurry up and sign is a red flag.

Understand what you’re giving up.

Severance agreements almost always include a release of claims, meaning you agree to waive your right to sue the company for any claims against it. This includes employment-related claims such as wrongful termination, discrimination, unpaid wages, and retaliation.

This release has real value: it is what the employer is paying you for. Before you sign it away, you should understand whether you have any claims worth pursuing, and whether the severance offered is fair compensation for giving them up.

What’s actually negotiable?

Many employees assume the severance offer is take-it-or-leave-it. It rarely is. Common items that can often be negotiated include:

The severance amount. There is no standard formula for calculating severance. Your tenure, role, reason for termination, and leverage all affect what’s reasonable to ask for.
Health insurance continuation. If you’re enrolled in the company’s health plan and would like to elect COBRA coverage, you can ask them to cover COBRA premiums for a period of time rather than leaving you with the full cost.
Equity and bonuses. Any unvested stock or unpaid bonuses should be addressed. These can often be left out of initial offers, but can often be raised during negotiations.
Non-disparagement clause. Many agreements will include language preventing you from saying anything negative about the company. These can be really broad and confusing, and create more questions than answers. They are also usually silent about what the company can say about you. Ask for the non-disparagement clause to be mutual.
References. Get clarity on who you can list as a reference, how they can be contacted, and what they can say. A neutral reference policy (confirming only dates of employment and position) may not serve you well.
Outplacement services. Some employers offer career coaching or job search support. If it’s not in your offer, it may be worth asking.
Non-compete clauses. Non-compete agreements in Minnesota are now largely unenforceable. If the employer is trying to limit where and with whom you can work, you should speak to an attorney about it. There may be ways to narrow or eliminate these clauses.
Non-solicitation and confidentiality clauses. Many agreements prevent you from recruiting or soliciting the company’s employees and customers. If these clauses seem overbroad or will stop you from finding work, it may be worth asking to narrow or clarify these restrictions.

Minnesota-Specific Considerations

Minnesota has employment laws that may give you additional rights and strengthen your position.

The Minnesota Human Rights Act. This law covers a broad range of discrimination, protecting more groups than federal law. It also protects you from retaliation for reporting discrimination.
Wage Theft Protections. Minnesota has expansive protections in place against stealing your wages, including PTO if your employer’s policy requires it.
Non-compete agreements. Most are unenforceable in Minnesota. If you’re severance agreement includes one, that’s worth knowing.

How to Approach the Negotiation

Once you understand what you’re signing, here is a practical guidelines for what to do next:

Don’t respond emotionally. Even if the offer feels insulting, respond professionally. Though it may feel personal, you’re negotiating a business deal.
Ask for more time if you need it. Especially if the company did not give you enough time to review the severance agreement or if you need additional time to find a lawyer, ask for more time to review.
Know your leverage. Do you have potential legal claims? A specialized skill that’s hard to replace? These may strengthen your position.
Make your counteroffer in writing. It’s usually best to write down your requests in an email. It makes a record and gives you time to think through what you’re requesting. If you counter in person follow up in writing to make a paper trail.
Be specific. Requesting an additional four weeks of severance and mutual non-disparagement language is more effective than “I was hoping for more.”
Don’t accept verbal assurances. If the company agrees to something, it needs to be included in the written agreement before you sign.

Get a Lawyer to Review It First

Here’s the most important tip on this page: Before you sign a severance agreement, have an employment attorney review it.
A severance agreement is a legal document with potentially significant consequences. An attorney can:

Cut through the legalese and understand what you’re signing
Identify claims you may have
Flag risky or problematic clauses in the agreement
Discuss negotiation points and strategy

Many employees assume an attorney will cost more than the severance is worth. That’s often not true, especially with flat-fee employment attorneys who charge a set amount for severance review. Paying the flat fee for a thorough review before signing away your legal rights is almost always worth it – both for financial reasons and peace of mind.

Have a severance agreement you need reviewed? We offer flat-fee severance review for Minnesota employees, a valuable service at a transparent price – no hourly billing surprises. Schedule your flat-fee severance review online today and be consulting with an experienced employment lawyer in no time.

Schedule Flat-Fee Severance Review

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