California Separation and Release Agreement
A California release must do more than recite a general waiver. It needs an express waiver of Civil Code section 1542 to reach unknown claims, and the employee must be told of the right to consult an attorney and given at least five business days. Wages cannot be made to depend on the release, and several claims cannot be waived at all.
What California law does to this document
Section 1542 and unknown claims
By statute, a general release does not extend to claims the releasing party does not know or suspect to exist at signing and that would have materially affected the settlement. California releases therefore quote section 1542 and waive it expressly. The generator adds that waiver, with the statutory text, when California is chosen as the governing state.
Cal. Civ. Code § 1542Right to counsel and five business days
An employer offering a separation agreement must notify the employee of the right to consult an attorney and allow a reasonable period of at least five business days to do so. The employee may sign sooner if the choice is knowing and voluntary and was not induced by a threat to withdraw the offer or by better terms for signing early. This applies at any age. Separately, the federal Older Workers Benefit Protection Act (29 U.S.C. § 626(f)) gives workers 40 and older at least 21 days to consider a release, 45 days in a group program, and 7 days to revoke.
Cal. Gov. Code § 12964.5(b)(4)No gag on unlawful workplace conduct
A separation agreement may not prohibit disclosure of information about unlawful acts in the workplace. A non-disparagement or confidentiality term that restricts disclosure of workplace conditions must include, in substantial form, this sentence: "Nothing in this agreement prevents you from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that you have reason to believe is unlawful." The amount of severance may still be kept confidential. These rules do not apply to a negotiated settlement of a claim the employee has already filed.
Cal. Gov. Code § 12964.5(b), (d), (e)Wages are not consideration
An employer may not require a release of a claim for wages due unless those wages have been paid, and a release obtained in violation of that rule is void. Wages earned and unpaid are due immediately on discharge and within 72 hours when an employee quits without notice. Vested vacation must be paid as wages at termination. A willful failure to pay on time continues the employee's wages as a penalty for up to 30 days.
Cal. Lab. Code §§ 201, 202, 203, 206.5, 227.3Claims a private release cannot waive
A release of workers' compensation liability is not valid unless the appeals board or a referee approves it. Unemployment insurance benefits are not subject to release. An employee's right to be indemnified for necessary work expenses cannot be waived by agreement. A settlement of a civil action under the Private Attorneys General Act requires superior court review and approval.
Cal. Lab. Code §§ 5001, 2802, 2804, 2699(s)(2); Cal. Unemp. Ins. Code § 1342No-rehire clauses and old non-competes
An agreement settling an employment dispute may not bar an employee who filed a claim against the employer from future employment with that employer or its affiliates. A filed claim includes a complaint made through the employer's internal process. There is an exception where the employer made and documented a good faith determination, before the claim was filed, that the person engaged in sexual harassment, sexual assault or criminal conduct. Reaffirming a prior non-compete adds nothing in California, because the covenant is void under Business and Professions Code section 16600.
Cal. Code Civ. Proc. § 1002.5; Cal. Bus. & Prof. Code § 16600Where people go wrong in California
- Holding the final paycheck or accrued vacation until the release is signed, when Labor Code sections 201 and 227.3 make them due at termination regardless.
- Relying on the generator's own carve-out wording in a non-disparagement or confidentiality term, when Government Code section 12964.5 calls for a specific sentence in substantial form that the draft does not reproduce, so that sentence should be added.
- Giving an employee under 40 no written notice of the right to consult an attorney, on the mistaken view that only the federal age-waiver rules require it.
How the generator works
A severance-for-release agreement that trades a defined severance payment for a general release of claims, with the ADEA/OWBPA machinery for employees 40+ and 2026-current disclosure and carve-out language. Answer a short interview and the draft assembles as you go, with California already set as the governing state. Download it as PDF or Word. No fee. No account.