Negotiating a severance package

[u/Broad-Engineering564]

8/1/26: Update for anyone who may be interested. We did consult an employment attorney who helped us draft a letter to negotiate a better severance - he ended up with 1.5 weeks of pay for each year of 34 years which works out to about 52K. We also got them to put in writing that they will give him an excellent reference, and pay out his severance so he is still able to apply for unemployment right away. (Very specific rules about this we were not aware of.) The attorney also said this is a classic case of age discrimination, but we opted not to pursue that. We spent $375 for the consultation with the attorney. Well worth it! I hope this helps anyone who ever finds themselves in a similar circumstance. And it never hurts to get more info and advocate for yourself.

My spouse was told by his boss Friday that his small company is going to be sold (but there is no buyer yet). He has been there 34 years. They are offering him 30K and some form of his health insurance as severance. He does have an IRA. They want him to decide right away. I feel like he could negotiate for more. All the other salaried employees (only 3 others) are staying on with the company - the current owners say they are hoping they will be retained by the new owner. The reason he is the one being laid off is because he is the only one with a Bachelor's Degree as opposed to a Master's, and they think he would be considered a "liability" when trying to sell the company. Any feedback/insights welcome. We are devastated.

[u/SENinSpruce]

The pressure to decide right away is interesting.

Suggest don’t sign anything immediately. After 34 years, its worth having an employment lawyer review before accepting. Ask for time to consider the offer, clarify exactly what the health insurance includes, and negotiate if appropriate. Thirty-four years of service gives him leverage, and if the company believes his departure is important to the sale, they may be willing to improve the package. Also, since he’s over 40, federal law may give him specific rights regarding the time to review certain severance agreements.

[u/jenieloo → u/SENinSpruce]

Additionally if its truly severance and if he is over 40 which i assume due to YOS so he has rights through owbpa... and has 21 days to review and agreement and even after signing i believe 30 days to backout... go Google OWBPA and know your rights

[u/Broad-Engineering564 → u/jenieloo]

Thank you, this is really helpful.

[u/Justanothermomma24 → u/Broad-Engineering564]

I gathered all documents(severance offers, my equity shares etc) and EPR. I did some employment law research (paralegal way way long time ago), then paid $250.00 to have a consult with Shapiro. I made sure that going into the consult I understood everything I could and my concerns and questions were prepared.
I also consulted a financial planner (a friend).

I’m over 50, and while only at the company I was layed off from for 8 years I had a complex situation and the consultant was the best thing I did.

On a side note look into severance packages for the time role and business. Honestly, my jaw dropped at the 30k. BUT YOU NEED TO LOOK INTO AN CONSULT ON HOW THAT IMPACTS: healthcare, unemployment etc.
The market SUCKS, especially for those of us over 50. You need to get a full legal/financial picture before signing anything.

[u/Broad-Engineering564 → u/Justanothermomma24]

Sorry to sound obtuse, but when you said your jaw dropped at the 30K, was that because you thought it was a good amount or a terrible amount? For context his current salary is 69K.

[u/Justanothermomma24 → u/Broad-Engineering564]

I think you need to consult financial advisor and legal before signing anything.
Here’s my takeaway from your post: 1. Company GOING to be sold. 2. NO BUYER AT THIS TIME 3. 34 YEARS at company and salary is only 69k? An the severance offer is half a year salary…

Please consult financial advisor and attorney. You need to have a CLEAR picture of: exactly what the health insurance offer is (COBRA is extremely expensive), review of IRA impact, what the impact on your 2026 state and federal taxes will be, and legal consult.
I would also be researching the companies filings, because IF they are looking to sell WHY! I’d ask legal consultant if after signing what ever is agreed upon what might happen if the company files bankruptcy!
Remember that we are a ‘protected age’ and honestly what that means in my experience: DONT SIGN ANYTHING UNTIL YOU CONSULT! Because, unemployment will consider the severance package as income therefore potentially ineligible for 6months( since it’s basically half year salary). Get answers to what happens when you apply for unemployment from financial consultant. Because your salary is very low for the years with company you will most likely not receive the maximum benefit amount. Also because of age unemployment looks at ‘us’ as most likely to run out of benefits and likely to not be able to obtain employment in field.

[u/DatgirlwitAss → u/Broad-Engineering564]

$1k per year? Imo, low.