Employment Law Aid

Virginia Severance Agreements: What to Know

Updated 2026-12-11
Fact Checked

Quick Answer

Guide to Virginia severance agreements including release requirements, negotiation tips, and employee rights.

Quick Answer: Virginia employers aren't required to offer severance, but many do in exchange for releasing legal claims. With the Virginia Values Act expanding employee rights, severance releases may be more valuable. Understand what you're giving up before signing.

Know your rights before signing.

Severance Basics

Not Required

Key points:

  • No Virginia law requires severance
  • Voluntary employer decision
  • Contract may require
  • Policy may apply

Why Employers Offer

Reasons:

  • Obtain release of claims
  • Avoid VVA litigation
  • Smooth transition
  • Confidentiality

Typical Components

May include:

  • Cash payment
  • Benefits continuation
  • Reference letter
  • Non-disparagement

Release of Claims

What You're Releasing

Typically covers:

  • VVA claims (discrimination)
  • Wrongful termination
  • Wage claims
  • Contract claims

Virginia Values Act Claims

Now more valuable:

  • Broader protections since 2020
  • More covered categories
  • No cap on compensatory damages
  • Consider claim value

OWBPA (Age 40+)

Requirements:

  • 21 days to consider
  • 7-day revocation
  • Must advise attorney consultation

Negotiating Severance

Everything Negotiable

Consider:

  • Higher payment
  • Extended benefits
  • Better reference
  • Non-compete modification

Leverage Points

Stronger if:

  • VVA claims exist
  • Institutional knowledge
  • Senior position
  • Transition needed

Key Terms

Non-Disparagement

Watch for:

  • Scope
  • Mutual or one-sided
  • Exceptions

Confidentiality

Understand:

  • What's covered
  • Who can you tell
  • Exceptions

Non-Compete

Review:

  • Low-wage ban may apply
  • Terms reasonable?
  • Modified in agreement?

Common Scenarios

Scenario 1: Layoff

Situation: Standard severance offer.

Analysis: Negotiate improvements. Evaluate claims.

Scenario 2: Potential Discrimination

Situation: Believe VVA violation occurred.

Analysis: VVA claims valuable. Consult attorney.

Scenario 3: Low-Wage Worker

Situation: Severance includes non-compete.

Analysis: Non-compete likely unenforceable. May not need to agree.

Before Signing

Take Time

Don't rush:

  • Use review period
  • 21 days if 40+
  • Request more if needed

Evaluate Claims

Consider:

  • VVA discrimination?
  • Wage issues?
  • Contract violations?

Get Legal Review

Attorney can:

  • Evaluate claim value
  • Identify problems
  • Negotiate better terms

Frequently Asked Questions

Is severance required?

No Virginia law requires it.

How valuable are VVA claims?

Potentially significant. No cap on compensatory damages.

Can I negotiate?

Yes, almost everything is negotiable.

Should I get a lawyer?

Recommended if potential claims or significant severance.

Related Topics

Take Action

If offered severance:

  1. Don't sign immediately
  2. Evaluate potential VVA claims
  3. Review all terms
  4. Consult attorney
  5. Negotiate improvements

Legal Disclaimer

This article provides general information about Virginia severance agreements and is not legal advice. For specific advice, consult a licensed Virginia employment attorney.

Frequently Asked Questions

What is not Required?
Key points: No Virginia law requires severance Voluntary employer decision Contract may require Policy may apply
Why Employers Offer?
Reasons: Obtain release of claims Avoid VVA litigation Smooth transition Confidentiality
What is typical Components?
May include: Cash payment Benefits continuation Reference letter Non-disparagement
What You're Releasing?
Typically covers: VVA claims (discrimination) Wrongful termination Wage claims Contract claims
What is virginia Values Act Claims?
Now more valuable: Broader protections since 2020 More covered categories No cap on compensatory damages Consider claim value

Legal Disclaimer

The information on this website is for general informational purposes only and does not constitute legal advice. Employment laws vary by state and change frequently. For advice specific to your situation, consult a licensed employment attorney in your state. Employment Law Aid is not a law firm and does not provide legal representation. No attorney-client relationship is created by using this website.