Severance agreement review in Arizona

Am I entitled to severance pay in Arizona?

Generally no. Arizona has no statute that requires severance, and at-will employment means an employer can end the job without paying anything beyond wages already earned. Severance exists because the employer wants something from you, usually a release of claims, which is why the agreement is worth reading as the trade it is.

How long do I have to decide?

If you are 40 or older, the Older Workers Benefit Protection Act requires at least 21 days to consider a release of age claims (45 days in a group layoff) and 7 days to revoke after signing. Under 40, the deadline is whatever the agreement says, and a very short one is itself a negotiating point.

An employer that pressures you to sign on the spot has usually written a deadline it cannot enforce. Take the document home.

What am I actually releasing?

Typically every claim you could bring against the employer through the date you sign: discrimination, retaliation, wrongful termination under A.R.S. § 23-1501, unpaid wages, contract claims. Some rights cannot be waived, including the right to file an EEOC charge and claims for wages already earned, which the employer owes whether or not you sign.

Is the amount negotiable?

Often. Severance is a business decision, and the number moves when the release is worth more to the employer than the offer, when the departure has facts the employer would rather not litigate, or when the agreement asks for more than a release (a non-compete, cooperation, a non-disparagement clause). The assessment tells you which of those apply to you.

What else is usually in the agreement?

Confidentiality, non-disparagement, a non-compete or non-solicit, return of property, a cooperation clause, and the reference the employer will give. Arizona enforces reasonable non-competes, so a clause that limits your next job is a real cost and belongs in the negotiation, not the fine print.