Q: Employee term is under 40 and we are offering severance agreement. Is it 5 Days to sign and No Revocation period?

A: In California, when offering a severance agreement to an employee who is under 40 years old, the specific timeframe for signing the agreement and any revocation period are not mandated by federal laws like the Older Workers Benefit Protection Act (OWBPA), which applies to employees over 40. For employees under 40, the state does not set a minimum period to consider the severance offer. However, it's crucial to ensure that the employee has enough time to review and understand the agreement fully, so they make an informed decision. Providing a reasonable period, though not legally required, reflects good practice and fairness.

Regarding the revocation period, for employees under 40, California law does not mandate a revocation period for severance agreements. This contrasts with the requirements for older employees, where a revocation period must be offered. Nonetheless, it's essential to draft severance agreements that are clear, fair, and considerate of the employee's rights, including clearly stating any terms regarding acceptance and if any voluntary revocation period is allowed by the employer.

When drafting and offering severance agreements in California, it's advisable to seek legal guidance to ensure compliance with all applicable laws and to ensure the agreement is structured in a way that protects both the employer and employee's interests. Even though the law does not prescribe specific periods for those under 40, providing clear, understandable terms and possibly a reasonable timeframe for consideration and any voluntary revocation can help ensure a smooth and respectful termination process.