You got the severance offer, and it reads like there’s nothing left to say back to it.
But, sometimes, employers get severance agreements wrong. Illinois employers draft separation agreements fast, sometimes from an old template. They may miss a step. There could be a review period trimmed short, a release stretched too wide, or a non-compete tacked onto someone the law says shouldn’t have one. Finding those gaps is often the difference between accepting the first number and negotiating a better one.
1818 Legal reviews severance agreements from the employee’s side, looking for exactly what the employer’s draft left out. If you were just handed one, it’s worth a second read before you sign it.
Key Takeaways
- If your severance agreement asks you to keep quiet about an alleged unlawful workplace practice, Illinois law generally gives you 21 days to consider it and 7 days to change your mind after signing. If you’re 40 or older and the agreement asks you to give up an age-discrimination claim, federal law gives a similar window — 21 days alone, or 45 days if it’s part of a group layoff — plus 7 days to revoke.
- A release that waives age discrimination claims can be voided entirely if the employer skips a handful of specific disclosures.
- Non-compete and non-solicit clauses in a severance agreement only hold up if the employee’s pay clears a set threshold and gets enough advance notice.
- A missed WARN notice before a layoff can turn into weeks of owed pay, separate from whatever severance was offered.
1818 Legal has spent years catching these errors before employees sign, and a short conversation with our office costs nothing.
They Treat the Review Period Like a Suggestion
The deadline the employer typed onto the signature page is not optional. Understanding how long you have to sign a severance agreement can help you avoid giving up important rights too quickly. Illinois law gives you 21 days to consider a separation agreement when it asks you to stay quiet about an alleged unlawful workplace practice.
You can sign sooner, but only if you do it knowingly and on your own. If your agreement doesn’t touch on unlawful conduct at all, this specific rule may not apply. However, in some cases a similar rule under federal law might, if you’re 40 or older.
As of January 1, 2026, Illinois law asks for more than the 21-day and 7-day windows alone. A confidentiality clause tied to an alleged unlawful employment practice now has to reflect the employee’s own documented preference, be mutually beneficial, come with separate consideration apart from the severance payment itself, and include written notice of the right to have a lawyer review it. An agreement that only hits the old timing requirements and skips these newer conditions may not hold up.
They Botch the Release for Employees Over 40
If you’re 40 or older and the agreement asks you to release age discrimination claims, the employer has to clear a specific checklist, or the release doesn’t count.
The Individual Waiver
The Older Workers Benefit Protection Act requires plain language, a written recommendation to consult a lawyer, and a 7-day revocation period after signing. You get at least 21 days to decide if you’re the only one being let go. If it’s part of a group layoff or a company-wide program, the law gives you at least 45 days instead of 21.
The Group Layoff Disclosure
When the departure is part of a larger layoff, the employer owes something extra: a list of job titles and ages of everyone considered for the program, both the people let go and the people kept. Companies routinely leave this attachment out, and its absence is one of the more expensive mistakes an employer can make.
They Write a Release That Tries to Cover Everything
A release of claims is supposed to name what’s being given up, not everything a lawyer could ever imagine. Some Chicago employers draft releases so broad they try to waive rights that can’t legally be waived. This may include workers’ compensation claims, unemployment eligibility, or the right to file a charge with the Illinois Department of Human Rights even after signing. The same overreach shows up in non-disparagement clauses that try to gag an employee about matters the agreement was never meant to touch.
An overbroad release does not automatically get thrown out. It gets narrowed, or it gets negotiated. Either path starts with someone reading the language closely enough to see where it stretches past what the law allows. 1818 Legal does that reading for employees across Chicago.
They Slip a Non-Compete Past Someone the Law Protects
Restrictive covenants written into a severance agreement have to clear real thresholds under the Illinois Freedom to Work Act. Watch for these gaps:
- A non-compete attached to someone earning under $75,000 a year, which the law makes unenforceable outright.
- A non-solicitation clause aimed at someone earning under $45,000, which fails for the same reason.
- No 14-day period to review the covenant and no written advice to talk to a lawyer first.
Employers who reuse an old template from a higher-earning role often paste in a non-compete that never should have made it into a lower-salary employee’s agreement. Catching it means the clause comes out. Missing it means living under a restriction that was never valid to begin with.
They Forget the Layoff Notice Entirely
Sometimes there is no severance conversation at all, because the notice that was supposed to start it never went out. Under the Illinois WARN Act, employers with 75 or more full-time workers owe 60 days’ written notice before a mass layoff or plant closing. If the employer skips it, they may owe back pay, benefits, and final compensation for the notice period, on top of anything offered as severance.
If your layoff hit a facility with dozens of coworkers and nobody mentioned WARN before the termination meeting, that’s a question worth asking before signing anything. An Illinois severance agreement attorney can tell you in one call whether the timing fits a WARN violation or a routine, properly noticed reduction.
Every gap above points the same direction. The mistakes employers make in a rush are rarely random, and they’re almost always worth more to you than the number on the proposed severance agreement.
1818 Legal reviews these agreements line by line, and if something’s missing, we’ll tell you what it’s worth.
Frequently Asked Questions
What happens if my employer made a mistake in my severance agreement?
It depends on the mistake, but a lot of them are fixable in your favor. A defective age-discrimination release, for example, can be void under federal law even after you’ve signed, which means you keep the severance and keep the claim. Bring the agreement to a lawyer before you assume the mistake works against you.
Can I still sue after I’ve signed if the release turns out to be defective?
Sometimes, yes. Courts have found that a release missing required disclosures, like the 21-day period or the advisement to consult counsel, never waived the claim it was meant to cover. You’ll still want a lawyer to confirm which claims survived and whether a filing deadline is running.
Do I need a lawyer to review a severance agreement in Illinois?
You’re not required to, but most people can’t spot a missing disclosure or an unenforceable non-compete on their own. A short review usually costs far less than what a bad release or an overbroad restriction could cost you later. It’s worth a free consultation before you sign, not after.
1818 Legal: Your Chicago Employment Law Firm
A severance agreement arrives when a job ends. It can be difficult to read the fine print carefully when you are worried about your lost income.
We start every review by checking the deadline, the release language, any restrictive covenant, and whether a required notice ever went out.
If you’ve been handed a severance agreement and something about it feels off, trust that instinct. Contact our firm today, and let’s find out what it’s worth before you sign.
