If your employer has given you a severance agreement, one of your first questions may be: How long do I have to sign it?
The answer is not always as simple as the deadline printed in the agreement. Depending on your age, the circumstances of your termination, and the language in the agreement, federal or Illinois law may give you a specific amount of time to review the agreement before signing.
Just as importantly, you usually should not feel pressured to sign a severance agreement immediately. A severance agreement is a contract. In exchange for severance pay or other benefits, your employer will typically ask you to release significant legal rights.
Before signing, it is important to understand both the deadline and what you are giving up.
Is There a Standard Deadline for Signing a Severance Agreement in Illinois?
There is no single rule that gives every Illinois employee the same amount of time to sign every severance agreement.
Some employers provide seven, 10, 14, or 21 days to respond. Others may provide considerably more time. But the deadline selected by an employer does not necessarily determine the employee’s legal rights.
Two important sets of laws may affect the amount of time an employee receives: federal protections for workers age 40 and older and the Illinois Workplace Transparency Act.
If You Are 40 or Older, You May Have at Least 21 Days
Federal law provides important protections to employees age 40 and older who are asked to waive potential claims under the Age Discrimination in Employment Act (ADEA).
Under the Older Workers Benefit Protection Act (OWBPA), an individual employee who is asked to waive ADEA claims generally must receive at least 21 days to consider the agreement. The agreement must also advise the employee in writing to consult with an attorney before signing. EEOC
An employee does not necessarily have to wait all 21 days before signing. Federal regulations permit an employee to voluntarily sign earlier, provided the decision is knowing and voluntary and the employer has not improperly pressured the employee into shortening the review period. EEOC
That distinction is important: having 21 days to consider an agreement does not mean you must sign it on day 21. It means you generally have the right to use that time before making your decision.
Group Layoffs Can Trigger a 45-Day Review Period
Different rules may apply when employees age 40 or older are terminated as part of certain group layoffs, reductions in force, or exit incentive programs.
In those circumstances, federal law generally requires at least 45 days to consider the agreement rather than 21 days. Employers must also provide certain information concerning the group covered by the termination program, including specified information about the ages and job titles of affected and unaffected employees. EEOC
If you have been included in a larger reduction in force, therefore, the agreement deserves particularly careful review.
Do You Have Seven Days to Change Your Mind?
For a valid waiver of ADEA claims under the OWBPA, an employee must receive at least seven days after signing to revoke the agreement. The agreement does not become effective or enforceable as an ADEA waiver until that revocation period expires. EEOC
The federal seven-day revocation period cannot be shortened by agreement. EEOC
This is different from the period you receive to consider the agreement. For example, an employee may receive 21 days to review the agreement, sign it on day 15, and then have a separate seven-day period in which to revoke the ADEA waiver.
Illinois Law Can Also Provide a 21-Day Review Period
Illinois employees may have additional protections under the Illinois Workplace Transparency Act.
The Act applies to certain settlement or termination agreements containing confidentiality promises related to alleged unlawful employment practices. When the statute applies, the employee must be given 21 calendar days to consider the agreement before signing, although the employee may knowingly and voluntarily sign sooner. Illinois General Assembly
The Illinois statute also provides a seven-calendar-day revocation period unless that period is knowingly and voluntarily waived. Effective January 1, 2026, the law also requires separate bargained-for consideration for certain confidentiality promises. Illinois General Assembly
The important point is that the often-repeated statement that “everyone gets 21 days to review a severance agreement” is not accurate. Whether a statutory 21-day period applies depends on the circumstances and the agreement.
What Happens if You Negotiate the Severance Agreement?
Receiving a severance agreement does not necessarily mean you have to choose between signing the agreement exactly as written and walking away with nothing.
Severance agreements are often negotiable.
Employees may seek changes involving:
- Additional severance compensation;
- Continued health insurance or assistance with COBRA premiums;
- Payment of commissions or bonuses;
- Treatment of stock, options, or other incentive compensation;
- Neutral or agreed-upon references;
- Mutual non-disparagement provisions;
- Changes to non-compete or non-solicitation restrictions; or
- Other terms affecting the employee after departure.
Negotiation can also affect the applicable deadline. Under the federal regulations governing ADEA waivers, the 21- or 45-day period generally runs from the employer’s final offer. A material change to that offer generally restarts the period, although the parties can agree that changes will not restart it. EEOC
Don’t Look Only at the Amount of Severance
If an employer offers you $20,000, $50,000, or six months of salary, it can be tempting to focus exclusively on that number.
But the better question is: What am I giving up in exchange for the money?
Most severance agreements contain a broad release of potential legal claims. Depending on the circumstances, that could include claims involving discrimination, retaliation, harassment, disability accommodations, medical leave, whistleblowing, wages, commissions, or other workplace rights.
The circumstances leading to your termination can therefore be just as important as the language of the severance agreement.
An employee who was terminated shortly after complaining about discrimination, reporting misconduct, requesting medical leave, seeking a disability accommodation, complaining about unpaid compensation, or engaging in another protected activity may have issues worth evaluating before signing a release.
What Should I Do if My Employer Says I Have Only a Few Days?
First, do not panic and do not assume you must sign immediately.
Read the deadline carefully. Determine whether the agreement contains an ADEA waiver, confidentiality provisions concerning alleged unlawful employment practices, or other language that may trigger statutory protections.
You can also ask the employer for additional time. And if you want an attorney to review the agreement, do it early rather than waiting until the final day. The EEOC itself advises employees considering severance agreements not to wait until the deadline to obtain legal advice. EEOC
Most importantly, remember that the employer is asking for your signature for a reason. Your release has value. Before giving it away, you should understand whether the severance being offered fairly compensates you for the rights you are releasing and whether there is an opportunity to negotiate better terms.
Received a Severance Agreement? Have It Reviewed Before You Sign.
If you have received a severance agreement in Chicago or elsewhere in Illinois, 1818 Legal can review the agreement before you sign it.
We represent employees in severance negotiations and employment disputes. We can review the agreement, explain what rights you are being asked to release, evaluate the circumstances surrounding your termination, identify potential negotiating leverage, and, when appropriate, negotiate directly with your employer for improved terms.
Before you sign—or let the deadline expire—contact 1818 Legal to discuss your severance agreement.
