What is a release of claims in a severance agreement — and what am I giving up?
The short answer
A release of claims is the core exchange in most severance agreements: you give up the right to bring legal claims against the employer — typically covering discrimination, wage disputes, wrongful termination, and related matters — in return for the severance payment or other benefits offered. EEOC guidance reports that certain rights generally cannot be waived in a severance agreement, including the right to file a charge with the EEOC and the right to participate in an EEOC investigation. What your specific release covers, how broadly it is written, and which claims it names depend entirely on the agreement's wording. Scan your agreement to see what its release clause says before you sign.
What Dang reviews here: Dang reviews the clause language in your severance agreement — what the release, non-compete, arbitration, and non-disparagement terms say and what to ask about them. It does not verify wage, hour, or leave compliance.
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What the release clause usually does
The release clause lists the categories of claims you are waiving — often by naming specific statutes (Title VII, the ADA, the ADEA, state discrimination laws) or using broad language like "any and all claims arising from your employment." In exchange, the employer pays severance or other benefits. EEOC guidance on severance waivers notes that a valid release must be supported by consideration beyond what the employee is already entitled to, must be written clearly enough to be understood, and — for workers 40 and older — must meet the additional OWBPA requirements described in the ADEA.
The breadth of the language does the work. A narrow release may cover only the termination itself; a broad one may reach claims you are not yet aware of, including potential future-looking claims connected to past employment. What the release does not cover matters too: EEOC guidance states that provisions attempting to prevent employees from filing a charge with the EEOC or participating in an EEOC investigation are generally not enforceable, regardless of what the release says.
Why people worry
The worry is common and understandable: signing away the right to sue can feel final, especially when the circumstances of the departure feel unfair. Workers report not knowing which claims they are giving up, whether the release covers claims they have not yet discovered, or whether anything is left they could still pursue. The clause-level question — what exactly does this release cover, and what does it exclude — is exactly what the language answers.
What to look for in your agreement
- The scope of the release — whether it names specific statutes or uses catch-all language covering all employment-related claims.
- Whether "unknown claims" are included, and what language signals that.
- Any carve-outs: what the release expressly does not waive (EEOC charges, workers' compensation, vested retirement benefits).
- Whether the release is mutual — does the employer also release claims against you?
- For workers 40 and older: whether the agreement names the ADEA specifically, as OWBPA requires.
Questions to ask before signing
- Ask the employer to identify every category of claim the release is intended to cover.
- Ask the other party to clarify whether any claims from your employment are excluded from the release.
- Confirm whether the release is one-sided or mutual.
- Consider having the release clause reviewed before signing if the language is broad or covers claims you think you may have.
Why scan instead of guess
The general rule tells you the baseline. Your offer tells you what you’re actually being asked to sign — and the wording is what binds. Dang reads the document and flags the clauses worth reviewing, in plain English.
The deterministic engine scores and decides what’s risky. The AI only enriches the plain-English wording — AI extracts, code decides, never the other way around.
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Common questions
Can a severance agreement stop me from filing an EEOC charge?
EEOC guidance reports that provisions in severance agreements that attempt to prevent employees from filing a charge with the EEOC or participating in an EEOC investigation are generally not enforceable. The right to file a charge is described as non-waivable.
Does signing a release mean I can never take any legal action?
It generally means you have waived the specific claims the release covers, subject to what was knowingly and voluntarily agreed. What is and is not covered depends on the release's language — which is why reading it carefully matters.
Sources
- EEOC — Q&A: Understanding Waivers of Discrimination Claims in Employee Severance Agreements (official agency guidance) · official source
- Sources last checked 2026-06-11. Laws and market practices change — confirm current rules before relying on them.
No account required · File deleted after analysis · Not legal advice. Dang reports contract findings in plain English — general information, not legal advice about your situation. For consequential decisions, consult a licensed attorney in your state.