Articles / When the agreement arrives
How long do you have to sign a severance agreement in California?
The California five-business-day rule, the federal 21, 45 and 7 day rules for workers 40 and over, and what happens when the agreement changes.
Last reviewed November 6, 2026. General information about California law, not legal advice.
The short answer
For most separation agreements, California requires at least five business days to consider the agreement and a written notice that you can talk to a lawyer. If you are 40 or older and the agreement releases age claims, federal law adds 21 days to consider it (45 in a group layoff) and 7 days to change your mind after signing. A deadline printed on the agreement can be shorter in practice only if you choose to sign early.
General minimums · not a personal deadline
The review clocks, side by side
For most separation agreements, California requires notice of the right to talk to a lawyer and at least five business days to consider the agreement. Signing earlier is allowed when it is the worker's own choice.
When the agreement releases age claims, federal law adds at least 21 days to consider it and 7 days after signing to revoke. California's five business days apply as well.
In a group layoff or exit program, the federal period is at least 45 days, plus 7 days to revoke, and the employer gives written information about who was selected and who was not.
If the agreement changes: California's rule is silent on revised drafts. For age claims, a material change restarts the 21 or 45 days, unless the parties agree that changes do not restart it.
Gov. Code 12964.5 · 29 U.S.C. 626(f) · 29 C.F.R. 1625.22. General information, not legal advice. Map the timelines for a situation · Free and low-cost help
The California rule
For a separation agreement, Government Code 12964.5 requires two things: notice that you have the right to consult an attorney about the agreement, and a reasonable period of at least five business days to consider it.
You can sign earlier if you want to. The law treats an early signature as valid when it is your own knowing and voluntary choice, and not the result of pressure such as a threat to withdraw the offer or better terms for people who sign quickly.
The rule does not cover a negotiated settlement of a claim you have already filed in court, with an agency, in arbitration or through the employer’s internal complaint process.
The federal rule for workers 40 and over
If you are 40 or older and the agreement releases age discrimination claims, the federal Older Workers Benefit Protection Act sets longer minimums:
- 21 days to consider the agreement, or 45 days if it is part of a group layoff or exit program.
- 7 days after signing to revoke it. This window cannot be shortened.
- In a group program, the employer must also give written information about who was selected and who was not.
When the agreement changes
This is where most confusion happens. California’s five-day rule does not say what happens when a revised version arrives on day four. For age claims, the federal rule restarts the 21 or 45 days after a material change, but the agreement is allowed to say that changes do not restart it.
A common step people take is to note the date each version arrived, compare the versions, and ask in writing for a list of every change before signing.
Count real dates
Business days skip weekends and usually holidays. Write the date you received the version you are being asked to sign, then count forward on a calendar. If two sections of the same agreement give different numbers of days, people commonly ask in writing which one controls.
Read the transcript
Over 40 and handed a severance agreement? If it waives age discrimination claims, federal rules generally give at least 21 days to consider it, 45 in a group layoff, and 7 days to revoke after signing. That time is when many people check one thing. Is the version on the signing screen the version they read? Same file name. One new line. California law gives workers a copy of the employment documents they sign. Upon request. Many people ask for it, and keep it where it opens without a company login. The agreement you remember isn't the one that counts. The one you signed is. Send this to someone who just got the email.
Watch · 0:40
Over 40? The review clocks
The federal 21, 45 and 7 day periods for agreements that release age claims, and why many people compare the signing screen with the version they read.
Common questions
Can my employer make me sign a severance agreement on the spot?
For most separation agreements, no. Government Code 12964.5 requires at least five business days to consider the agreement and notice of the right to consult an attorney. You may choose to sign sooner, but the choice is yours.
Does the five-day rule apply to every agreement?
No. It does not apply to a negotiated settlement of a claim you already filed in court, with a government agency, in arbitration or through the employer's internal complaint process.
If the agreement changes, does my review period start over?
California law is silent on revised drafts. For a release of age claims, federal rules restart the 21 or 45 days after a material change, unless the agreement says changes do not restart it.
Not legal advice
This article explains how California and federal rules generally work. It does not tell you what to do in your situation, and reading it does not create an attorney-client relationship. Every example on this site is a fictional story. For advice, seefree and low-cost help in California.