Employee Survival Guide® - Severance Negotion Power Moves: No. 2

Episode Date: February 16, 2026

Comment on the Show by Sending Mark a Text Message.The moment the axe falls is disorienting: a manager reads a script, a number sits on a page, and your mind races to rent, kids, and health insurance. We slow that moment down and turn panic into a plan, showing how to price your signature, protect your benefits, and negotiate a severance that reflects market reality, not just a corporate formula.We start by killing the biggest myth—there’s no law that guarantees a set severance—and reset the baseline. From there, we map a practical playbook: calculate your burn rate, match it to realistic job-search timelines by level, and build a calm, data-backed counter. Then we dig into the hidden buckets companies hope you ignore: prorated annual bonuses when you’ve worked most of the year, unpaid commissions sitting in pipeline, and time-based equity that’s weeks from vesting. You’ll hear how to request accelerated vesting, how to document commissions, and how to turn “must be employed on payout date” clauses into fair prorations.Healthcare is its own minefield. We explain why COBRA reimbursements often become taxable income and how to ask the employer to pay premiums directly to the carrier during the severance period, extending coverage past month-end so you don’t get caught mid-appointment or mid-prescription. Finally, we talk about the real value on the table: your release of claims. If there are signs of discrimination, retaliation, or whistleblower issues, the math shifts from weeks of pay to risk mitigation for the company, and the number can climb dramatically with the right legal guidance.By the end, you’ll have a checklist to compare their first offer to your true needs—runway months, prorated bonus, commissions, equity at risk, and healthcare costs—and a script to deliver your counter without heat or apology. If this helped you reframe your exit, subscribe, share it with a colleague who needs it today, and leave a quick review telling us the one negotiable you’re asking for first. If you enjoyed this episode of the Employee Survival Guide please like us on Facebook, Twitter and LinkedIn. We would really appreciate if you could leave a review of this podcast on your favorite podcast player such as Apple Podcasts and Spotify. Leaving a review will inform other listeners you found the content on this podcast is important in the area of employment law in the United States. For more information, please contact our employment attorneys at Carey & Associates, P.C. at 203-255-4150, www.capclaw.com.Disclaimer: For educational use only, not intended to be legal advice.

Hey, it's Mark here and welcome to the next edition of the Employee Survival Guide, where I tell you, as always, what your employer does definitely not want you to know about. And a lot more. I'm your host, Mark Carey. I'm an employment attorney, and I'm here to tell you what your HR department won't tell you. Today, we're talking about the moment the axe falls. You've been let go. You're in shock, and they slide a document across the table called a separation agreement.

It has a number on it. Most people look at the number. They feel grateful just to get something, and they're not. sign it, stop. That number is not a gift. It's a purchase price. They are buying your rights. And today I'm going to teach you how to negotiate the real price of your signature so you don't leave money on the table. Let's first debunk a major myth. Employees always ask me, Mark, isn't there a law that says I get two weeks of pay for every year I worked? If I was asked that question, I would be a millionaire over and over and over because I'm asked it so many times. The answer is no, unless you have a union

contract or an employment agreement that explicitly states it, there is no federal state law mandating severance pay zero. Our companies usually have a policy. The typical corporate formula is one week, one to two weeks of pay per year of service. But here's what they don't tell you. That is a floor, not a ceiling. That is the go away quietly price. If you were over 40 under the older workers benefit protection act, you have 21 days to consider that agreement. Use them. Don't sign in the room. You need time to calculate your actual damages. So how do you calculate what you should get? You need to look at your severance, not as a reward for past severance, but as a bridge to your next job, which I do tell people quite often.

I want you to calculate your personal burn rate, your cash, and your bank and how much, how long you're going to last. You don't want to deplete all your savings, but you want to, you know, how long, you need to figure out how long it will take you to find a comparable job in the market. If you are a C-suite executive, it might take nine to 12 months. Typically, those folks have agreements in advance of their termination. We always negotiate that way. If you are mid-level, maybe three to six months of pay. If they offer you four weeks of pay, but the market data says it will take you six months to find a job, that offer is insufficient.

You need to counteroffer based on the market reality, not just their internal formula. Remember, employers are cheap. Your argument to them is simple. Your offer exposes me to significant financial risk based on current hiring trends. For my role, I need 16 weeks. not four to secure a new employment. Don't be shy about it. Now, let's look for the money they hope you forgot.

I call this the hidden buckets. Bucket number one, the bonus. If you are fired in October or November, you have earned almost your entire annual bonus. But most plans, bonus plans, say you must be employed on the date of your payout to get it. That is a loophole used to steal your labor, demand the prorated bonus. We do this all the time at an executive level. No reason you shouldn't do it for you.

If you worked 75% of the year, you deserve 75%. percent of your bonus. Don't back down. The bucket number two, the commission, people. Listen it. Look at your pipeline. If you close deals that haven't yet paid out, get that running. Do not let them walk away with your commissions. Bucket number three, R-ish and stock options. This is a huge one. If your stock vests next month and they fire you today, they are effectively clawing back that equity. I often negotiate what's called accelerated investing as part of the severance. Ask for the next tranche of stock to invest immediately. The COBRA trap. Let's talk about about health insurance, COBRA.

COBRA is expensive. It's 102% of the premium. If the employer is offering to reimburse you for COBRA, that reimbursement is often taxable income to you. Instead, ask the employer to continue paying the employer portion of the premium directly to the insurance carrier for the severance period. I also have asked the employer to pay both the employer and employee premium during the severance period. It saves you the tax hit and keeps the money flowing smoothly. Also, never just accept coverage ends at the end of the end of the month. were fired on the 28th and asked coverage to the end of the month. Well, ask for the following

month after that. Let's talk about the value of your silence. Finally, remember that you are what you're selling. They want a general release of claims. They want to sleep at night knowing you won't sue them for discrimination, retaliation, and unpaid wages, or hire me as your attorney. That will make them sleep well a night. I will assure you that. If you have any potential legal claims, if you were treated differently than others, if you blew the whistle on something, or if you feel the layoff was targeted, your severance shouldn't be two weeks per year. It should be significantly higher

because you are settling a potential lawsuit. This is where you need to get a lawyer, like myself, if you have a claim. The calculator changes from weeks of pay to risk mitigation for the company. That number is much, much, much higher. I promise you that. Here's the bottom line.

The first severance offer is never the best severance offer. It's usually a test. Do the math, add up your burn rate, your prorated bonus, your loss, stock option, and the cost of health insurance. Compare that to their offer. The difference is what you are trying to negotiate for.

Don't leave money on the table. You earned it. If you've been let go, need help reviewing your agreement, give us a call. Until next time, thank you for allowing to be a service. Have a great week. Hey, it's Mark, and thank you for listening to this episode of the Employees FI-E-E-Gide. If you'd like to be interviewed for our podcast

and share your story about what you're going through at work and do so anonymously, please send me an email at M-C-A-R-E-Y at C-A-P-C-C-Law.com. And also, if you like this podcast episode and others like it, please leave us a review. It really does help others find this podcast. So leave a review on Apple or Spotify or wherever you listen to this podcast. Thank you very much. And I'm glad to be a service to you.