Releasing Claims in a Nevada Severance Agreement: What Rights You Give Up

A severance agreement may offer money or benefits in exchange for your agreement to release certain legal claims against your former employer. This provision, often called a “release of claims” or “general release,” can have significant consequences if you later discover that you were underpaid, discriminated against, retaliated against, or wrongfully terminated. Before accepting an offer, review our Severance Negotiation Attorney (Nevada) page to understand how legal guidance can help you evaluate the terms and negotiate a more appropriate agreement.

The phrase severance release of claims Nevada refers to a common employment-law issue: what legal rights does an employee give up by signing a severance agreement? The answer depends on the language of the agreement, the claims involved, and applicable federal and state law. A release can cover many existing employment-related claims, but it cannot automatically eliminate every statutory protection or waive claims based on events that occur after signing. Understanding these limits is essential before deciding whether the payment is worth the rights you may be giving up.

Severance Release of Claims Nevada: Which Rights Could You Waive?

A broad release may require you to give up the right to pursue certain claims arising from your employment or termination through a lawsuit or other legal proceeding. The agreement may identify specific statutes, refer generally to employment-related claims, or use both approaches. The exact wording matters because a release should be evaluated based on the claims it actually covers, not merely its title.

For example, an agreement may seek to release claims involving discrimination, retaliation, wrongful termination, unpaid compensation, employment contracts, or other workplace disputes, to the extent those claims are legally waivable and covered by the agreement. If you have a potential claim against your former employer, signing a release may limit your ability to obtain additional compensation or other remedies for that claim. The effect depends on the applicable law and whether the release is valid and enforceable.

A release also may cover claims you have not yet formally filed, provided they arose before the agreement’s effective date and are otherwise covered by a valid waiver. This can be important if you suspect that your employer acted unlawfully but have not yet gathered all the evidence. Signing without understanding the scope of the release may prevent you from pursuing certain existing claims later, even if you did not know their full value when you signed.

The U.S. Equal Employment Opportunity Commission (EEOC) explains that severance agreements commonly exchange money or benefits for a waiver of certain employment-related claims. The agency also emphasizes that employees should understand which claims are being released and which rights cannot legally be waived.

Can You Waive Discrimination or Wrongful Termination Claims?

A severance agreement may seek to release certain claims under federal and state employment laws, including claims involving discrimination based on a protected characteristic. Depending on the agreement and the facts, this may affect your ability to pursue a claim under laws such as Title VII of the Civil Rights Act, the Americans with Disabilities Act, or the Age Discrimination in Employment Act.

Nevada employees may also have potential claims under state employment laws. If you believe you were fired because of discrimination, punished for reporting unlawful conduct, denied earned wages, or treated unlawfully in another way, do not assume that the severance payment fully compensates you for those claims. Consider the potential value of the claims, the evidence supporting them, the risks and costs of pursuing them, and the obligations imposed by the agreement.

A release does not automatically make an unlawful termination lawful. Instead, a valid release may limit your ability to obtain a legal remedy for certain claims arising from that termination. Whether a particular waiver is enforceable depends on the language used, the circumstances in which you signed, and the legal requirements applicable to the claim.

What Rights Cannot Simply Be Signed Away?

Although a severance agreement may waive certain existing claims, not every employment right can be eliminated through a private agreement. Federal law places limits on the rights an employee can waive, and the precise restrictions depend on the statute and circumstances.

For example, an agreement generally cannot prevent an employee from filing a charge with the EEOC, communicating with the agency, or participating in an investigation or proceeding. A release may affect an employee’s ability to obtain personal relief for certain claims, but it cannot simply prohibit lawful cooperation with the agency. The EEOC specifically advises employees to check that a severance agreement does not improperly restrict these rights.

Other rights may also be subject to statutory restrictions. The EEOC notes that employees should pay attention to provisions involving unemployment compensation, workers’ compensation, rights under the Fair Labor Standards Act (FLSA), certain health insurance rights, and vested retirement benefits. The treatment of each right depends on the applicable law; do not assume that a general release makes every claim or benefit waivable.

Some agreements also contain confidentiality, non-disparagement, or cooperation provisions. These terms deserve separate review because their enforceability can depend on the wording, the employee’s role, and applicable law. For example, certain broad restrictions on employees’ ability to discuss workplace conditions or engage in protected concerted activity may raise issues under the National Labor Relations Act. Employees should not assume that every restriction is valid simply because it appears in a signed document.

Special Rules for Employees Aged 40 and Older

Employees aged 40 and older receive additional protections when asked to waive federal age-discrimination claims under the Age Discrimination in Employment Act (ADEA). The Older Workers Benefit Protection Act (OWBPA) establishes requirements intended to ensure that such waivers are knowing and voluntary.

For an individual separation agreement involving an ADEA waiver, the employee generally must receive a written agreement in understandable language, be advised in writing to consult an attorney, receive at least 21 days to consider the offer, and have seven days after signing to revoke the agreement. Different and additional disclosure requirements may apply to certain group termination or exit incentive programs, including a longer consideration period and information about the group covered by the program.

These are not merely suggestions that an employer can ignore. If the required conditions are not satisfied, the waiver of the federal age-discrimination claim may be invalid. The requirements also mean that an employer generally cannot demand that an employee waive the applicable revocation period in an individual ADEA waiver.

The OWBPA protections are specific to age-discrimination waivers and should not be assumed to apply identically to every type of employment claim. If you are aged 40 or older and have been offered severance, review the agreement carefully to confirm that it addresses the relevant requirements.

How to Review the Release Before Signing

Start by identifying exactly which claims the agreement covers. Look for language referring to all claims, known and unknown claims, statutory claims, claims arising from employment, and claims connected with termination. Broad wording may be intended to cover more than a single dispute, so do not focus only on the specific issue that led to your separation.

Next, determine what you are receiving in exchange for the release. The EEOC advises employees to check that the severance consideration is something of value beyond what they are already entitled to receive. For example, earned wages or other payments already owed should not automatically be treated as additional severance compensation. Compare the amount offered with the scope of the release and any ongoing obligations you must accept.

Review the deadlines, payment conditions, confidentiality language, non-disparagement provisions, cooperation obligations, and any restrictive covenants. Confirm whether the agreement limits your ability to discuss workplace conditions, respond to a government investigation, or exercise other protected rights. If a provision is unclear or too broad, ask whether the employer will revise it before you sign.

Finally, keep a complete copy of the signed agreement and related correspondence. Do not rely solely on verbal assurances that a clause will not be enforced. If the employer agrees to change the terms, make sure the revised language appears in the final written agreement.

Can You Negotiate a Release of Claims in Nevada?

Yes. You can ask an employer to narrow the release, clarify its scope, revise certain restrictions, or increase the severance payment in exchange for the rights being waived. The employer is not required to accept every request, but the terms may be negotiable, particularly when the agreement is still under review.

For example, you may ask for clearer language defining the claims covered, a more limited confidentiality provision, an agreed reference, or changes to post-employment restrictions. If you have concerns about a potential legal claim, a lawyer can help determine whether the release should be narrowed or whether additional compensation would be appropriate to consider. Any negotiated change should be included in the final written agreement.

Do not assume that crossing out a clause or sending a separate email automatically changes the agreement. The effect of proposed revisions depends on the contract and applicable law. Ask for a clean revised version and confirm that the final document reflects the terms both parties have accepted.

What If You Already Signed the Agreement?

Signing a severance agreement does not mean every provision is necessarily enforceable, but it can make it more difficult to pursue claims that were validly released. If you later discover evidence of discrimination or another potential violation, the first step is to examine the agreement, the date you signed it, the claims it covers, and any applicable statutory requirements.

Certain waivers may be invalid if they fail to satisfy legal requirements or improperly attempt to restrict nonwaivable rights. For example, a waiver of an ADEA claim may be challenged if the OWBPA requirements were not met. However, you should not assume that a change of mind or the later discovery of evidence automatically cancels a release. The available options depend on the circumstances and applicable law.

If you believe the agreement is invalid or the employer has violated its terms, seek legal advice promptly. Keep the signed document, payment records, and communications about the offer. Legal deadlines may continue to apply even when you are discussing the agreement with your former employer.

Protect Your Rights Before Accepting Severance

A severance release can be one of the most consequential parts of an employment separation agreement. It may resolve existing disputes in exchange for payment, but it can also limit your ability to seek further relief for certain claims arising from your employment or termination. The scope of the release, the value of the consideration, and the statutory protections that apply should all be reviewed before signing.

If you have been offered severance in Nevada, take time to understand the agreement rather than treating it as routine paperwork. A careful review can help you identify what you are giving up, which protections remain available, and whether negotiating different terms is in your interests.

About Milan Chatterjee

This article was prepared by Milan Chatterjee, a Nevada and California licensed attorney and founder of Best Employment Attorney, the dedicated employment law practice of Milan Legal.

Milan represents employees and employers throughout Las Vegas, Reno, and across Nevada in workplace disputes involving retaliation, whistleblower claims, wrongful termination, discrimination, wage and hour violations, severance agreements, employment contracts, and related employment matters.

He earned his Juris Doctor from UCLA School of Law and also studied at New York University School of Law as a visiting student. Before entering private practice, Milan served as Associate Compliance Counsel at Las Vegas Sands Corporation, where he advised on employment compliance, workplace investigations, corporate governance, internal policies, workforce restructurings, severance matters, and enterprise risk management.

Today, Milan combines that corporate legal experience with a focused employment law practice representing employees and employers throughout Nevada.

Frequently Asked Questions

Conclusion

A release of claims can be one of the most important provisions in a Nevada severance agreement. By signing, you may give up the ability to pursue certain existing employment-related claims in exchange for severance pay or other benefits. The scope of the release, the value of the consideration, and the rights that remain protected under federal and Nevada law should all be understood before you sign.

If you have been offered severance, do not focus only on the amount of money being offered. Review the release, confidentiality and non-disparagement provisions, restrictive covenants, payment terms, and any rights you may be giving up. If you believe your termination involved discrimination, retaliation, unpaid wages, or another employment-law issue, consider obtaining legal guidance before accepting the agreement.