casemark/confidentiality-severance-agreement

Confidentiality and Severance Agreement

Drafts a complete termination settlement agreement securing confidentiality, claim release, and post-employment conduct obligations with enforceability across U.S. jurisdictions.

Prerequisites

Collect before drafting. If any item is missing, pause and ask — do not assume or fill gaps.

1. Employee details — full legal name, position, tenure, age, start/separation dates, work location, domicile state
2. Compensation inputs — salary, bonus formula, PTO/leave balance, equity treatment, benefits continuation, prior unpaid compensation disputes
3. Governing documents — handbook, offer letter, prior non-compete/confidentiality/IP agreements, equity/benefit plans, company termination policies
4. Legal constraints — employment jurisdiction(s), state non-compete/non-solicit rules, wage payment statutes, arbitration enforceability, non-waivable statutory claims
5. Process details — signatory authority, execution method, consideration amount, OWBPA revocation workflow (if age 40+)

Quick Start

Draft sections in this fixed order:

| # | Section | Key deliverables | |---|---------|-----------------| | 1 | Parties and dates | Legal names, addresses, termination date, effective date, execution date | | 2 | Recitals | Neutral background, consideration framing, counsel-notice language, no-fault framing | | 3 | Severance mechanics | Amounts, schedule, tax/withholding, benefit continuation, property return | | 4 | Release of claims | Broad waiver + carve-outs + ADEA/OWBPA flow + protected-disclosure savings | | 5 | Confidentiality | Definition, survival, return/destruction, statutory exceptions, DTSA notice | | 6 | Non-disparagement | Mutual scope with protected-activity carve-outs | | 7 | Restrictive covenants | Non-compete/non-solicit only if jurisdiction and role justify; reformation + severability | | 8 | Dispute resolution | Governing law, arbitration/forum, equitable relief carve-out, fee allocation | | 9 | Acknowledgments | Voluntary execution, legal/tax advisories, integration, notices, signatures |

Required Intake Fields

• Employer legal name, entity type, state of organization, principal address
• Covered entities/affiliates scope
• Employee legal name, home address, title
• Termination date (last day worked)
• Offer date and acceptance deadline (track OWBPA timing separately for age 40+)
• Governing state law and arbitration seat
• Whether group termination/incentive program applies

Pre-Draft Compliance Checklist

• [ ] Employee age 40+ — start OWBPA clock
• [ ] All consideration items lawful and payable
• [ ] Flag non-waivable rights (wage claims, workers' comp, unemployment)
• [ ] Restrictive covenant scope permitted in applicable state
• [ ] Statutory notices positioned with prominence (OWBPA, DTSA, unknown-claims waiver)
• [ ] No self-created admission-of-liability language

Clause Requirements

Severance

• Explicit gross amount, payment schedule, payroll mechanics, tax withholding
• Non-payment on breach only where law permits
• Optional: PTO conversion, bonus proration, COBRA stipend

Release

• Cover all claims linked to employment/termination: discrimination, wage/hour, retaliation, contract, tort, privacy
• Name corporate affiliates, officers, directors, agents as released parties
• Include known + unknown claims; savings clauses for non-waivable rights, whistleblower channels, agency participation
• Optional: ERISA vesting clarifications, fraud carve-through

OWBPA Flow (age 40+)

• 21-day consideration minimum (45 days for group/incentive separations)
• 7-day post-signature revocation period
• Attorney-consultation acknowledgment
• Effective date conditioned on revocation period expiry

Confidentiality

• Broad definition with list-based examples
• Return, deletion, certification, forensics access protocol
• Exceptions: publicly available, pre-existing, independently developed, legally compelled
• DTSA immunity notice language [VERIFY]

Non-Disparagement

• Mutual covenant; carve-outs for truthful testimony, legal rights, whistleblowing, protected concerted activity, lawful subpoena compliance

Restrictive Covenants

Include only if supported by role and jurisdiction:

• Minimum necessary duration, geography, and activity scope
• Blue-pencil/reformation + severability defaults
• Separate consideration if required by state law [VERIFY]

Dispute Resolution

• Governing law tied to substantial employment relationship
• Binding arbitration with fee allocation; injunctive relief carve-out for confidentiality/non-compete breaches
• Venue/forum aligned with jurisdictional fairness doctrines
• Optional: class/collective waiver (screen for enforceability)

Execution and Final Controls

• Separate employee/employer signature lines with date confirmation
• Return method and revocation address/proof requirements
• Non-admission of liability clause
• No-waiver-from-non-enforcement provision
• Surviving agreements preserved unless expressly superseded

Placeholder Map

Use these placeholders for variable terms:

| Placeholder | Values | |-------------|--------| | Employee Name | Full legal name | | Separation Date | Last day of employment | | OWBPA-Eligible | Yes / No | | Severance Amount | Dollar amount | | Payment Method | Lump sum / Payroll installments | | Non-Compete Scope | Duration / Geography / Activities | | Non-Solicit Scope | Duration / Protected customer definition | | Arbitration Forum | Forum name and venue | | Revocation Deadline | Date (if applicable) |

Jurisdiction Controls

• Apply OWBPA timing only for U.S. federal age-discrimination claims; verify state supplements
• Validate non-compete enforceability against local anti-restriction statutes and reasonableness tests
• Mark all non-waivable items and public-policy exceptions for selected jurisdictions
• Include Cal. Civ. Code § 1542 waiver where applicable; add equivalent-state language [VERIFY]
• Include DTSA immunity notice exactly as required [VERIFY]

Guidelines

Do:

• Use balanced, enforceable (not coercive) language
• Clearly separate consideration, release, and restrictive obligations
• Include explicit legal-counsel advisory acknowledgments
• Maintain consistent defined terms and cross-references

Do not:

• Add nationwide restraints without factual support
• Draft language implying admission of liability
• Omit revocation mechanics for age-40+ employees
• Skip statute-specific non-waivable carve-outs

Compliance:

• Validate amounts and timing under wage-payment rules and discrimination statutes
• Reconcile every clause with actual documents and facts before finalization
• Insert [VERIFY] markers where statutory citations or thresholds are state-specific and unconfirmed

Troubleshooting

Missing employee age information: OWBPA compliance cannot be determined. Pause and request age or date of birth before drafting the release section.

Non-compete clause in a ban state (e.g., California, Minnesota, Oklahoma): Remove the non-compete section entirely. Non-solicit may still be permitted — verify under applicable state law [VERIFY].

Group termination but only 21-day consideration period used: OWBPA requires 45 days for group/incentive program separations. Correct the consideration period and add the required decisional-unit disclosure.

No separate consideration for restrictive covenants: Some states require independent consideration beyond continued employment. Verify state law and add a separate consideration clause if needed [VERIFY].

Unknown-claims waiver without § 1542 language in California: The release may be unenforceable for unknown claims. Add Cal. Civ. Code § 1542 waiver language for any California-connected employee [VERIFY].

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