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If you've received a severance offer—or been terminated without one—you're likely wondering: "Do I have any power to negotiate?" In Utah, an at-will employment state, the answer isn't straightforward. While the legal framework might seem to favor employers, our experience representing Utah employees reveals that negotiation opportunities exist more often than most people realize.
The reality is nuanced. You may have more leverage than you think, even in situations where the law doesn't require your employer to offer anything at all.
Utah follows the at-will employment doctrine, meaning either you or your employer can terminate the employment relationship at any time, for any lawful reason, or for no reason at all. This fundamental principle creates the first challenge in severance negotiations: your employer has no legal obligation to provide severance pay unless a written contract requires it.
This includes:
Without one of these written agreements, severance becomes entirely discretionary from a legal standpoint.
Despite limited legal requirements, Utah employees negotiating severance often have more bargaining power than they realize. Your leverage typically comes from three sources.
The most significant leverage exists when circumstances surrounding your termination raise legal red flags. These situations shift the power dynamic considerably because they expose your employer to potential liability.
Discrimination or Retaliation Claims
If your termination followed any of these circumstances, you may have substantial leverage:
Utah employers take these situations seriously because defending against discrimination or retaliation claims involves significant legal costs, potential damages, and reputational harm—even when they believe they'll ultimately prevail.
Wage and Hour Violations
Unpaid overtime, misclassification as an exempt employee, or unpaid commissions create legal leverage because Utah employees have clear statutory rights to proper compensation. Employers often prefer resolving these issues through severance negotiations rather than formal claims or litigation.
Not all leverage is legal. In many cases we've handled, employers offer or negotiate severance simply because:
Long-tenured employees or those who've been high performers often have more leverage in these situations, even without legal claims.
Here's what many Utah employees don't realize: severance agreements almost always require you to give your employer something valuable. This exchange creates natural negotiation opportunities.
Standard severance agreements typically include:
Each of these provisions has value to your employer. You're entitled to negotiate compensation that reflects what you're relinquishing.
We've seen hundreds of Utah employers negotiate severance terms despite having no legal obligation to do so. Understanding their motivations helps you approach negotiations strategically.
Employers know that severance agreements with legal releases prevent future claims. Even when they believe a termination was completely lawful, the cost of defending against an EEOC charge or employment lawsuit often exceeds the cost of modest severance pay. For them, it's insurance.
Many Utah employers, particularly larger companies, build negotiation flexibility into their initial severance offers. They expect some back-and-forth and may have internal guidelines allowing managers to increase offers by certain percentages or add specific benefits without additional approval.
This means an initial "take it or leave it" offer may actually have room for improvement.
Employers understand that how they handle departures affects remaining employees' morale and loyalty. Generous severance—or at least fair negotiation—sends positive signals to the workforce and protects the employer's reputation as a good place to work.
Beyond the amount of severance pay, several other terms are frequently negotiable:
Financial Components:
Benefits:
Career Transition Support:
Agreement Terms:
Based on our experience representing Utah employees, these strategies improve negotiation outcomes:
1. Don't React Immediately
Take time to review any severance offer carefully. You're entitled to consideration time, and rushing signals desperation. For employees over 40, federal law requires employers to provide at least 21 days to consider severance agreements (or 45 days in group terminations).
2. Document Everything
Gather documentation that might support your leverage:
3. Make a Thoughtful Counter-Offer
Rather than simply asking for "more," present specific, justified requests:
4. Understand Your Timeline Leverage
If your employer wants you to sign quickly, ask yourself why. They may be trying to avoid you consulting an attorney or may need closure for their own business reasons. This creates leverage.
5. Focus on Mutual Benefit
Frame negotiations as solving mutual problems:
Some situations warrant professional legal guidance before signing any severance agreement:
At our firm, we've helped Utah employees identify leverage they didn't know they had and negotiate substantially improved severance terms—often recovering additional compensation that far exceeded our legal fees.
It's important to acknowledge that some Utah employers maintain firm policies against severance negotiation. Government employers and some larger corporations may have strict guidelines that leave little room for individual negotiation.
However, you won't know which category your employer falls into unless you ask. In our experience, employers who are truly unwilling to negotiate will say so directly, and you haven't harmed your position by making professional, reasonable requests.
At-will employment in Utah creates an uneven playing field, but it doesn't eliminate your ability to negotiate severance. Your leverage comes from potential legal claims, the value of what you're giving up, and often simply from employer practices and goodwill.
Before signing any severance agreement, consider:
Text or call us at (801) 695-9039 to learn more.
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