Florida Executive Severance Agreement Key Terms and Provisions

By Michelle Cohen Levy

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Employment Law

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Last Modified on Aug 25, 2026

Before signing any severance agreement, you must understand Florida executive severance agreement key terms and provisions. Executive severance agreements often contain unique elements compared to traditional severance agreements and often have complex legal language. This can make it difficult to fully understand a severance package when your employer hands you a severance agreement.

If, after reading about the key terms and provisions involved in these agreements, you are still unsure about whether to accept a severance agreement or to negotiate, you should consult with a Fort Lauderdale C-suite executive lawyer.

An Overview of Executive Severance Agreements in Florida

Executive severance agreements are contracts that establish the rights and obligations of an employer and the executive after an executive stops working. Florida severance agreement laws do not require most employers to provide severance packages, but 68.8% of public employers do offer these benefits to executives.

Every severance package is unique, mainly due to the differences in the terms and provisions of the agreement. It is important to carefully review these details, particularly under the guidance of a severance agreement attorney, as it can help you make an informed choice about whether you should accept the terms or negotiate for certain changes before signing.

Common Terms and Provisions in an Executive Severance Agreement Case

An executive severance agreement involves terms and provisions for discontinuing employment. The specific wording, benefits, and legal requirements outlined by the terms and provisions can have a lasting impact on your finances and your long-term career opportunities. Once you understand what each term actually does, you are in a better position to decide which ones are worth asking your employer to change. Common terms and provisions included in a severance agreement include:

• Severance pay. Severance pay involves continued salary after employment ends. This is sometimes paid through continued salary payments over a specific period of time, or as a lump sum. This pay often lasts for three to 12 months for executives, or one month for each year of employment.
• Performance bonuses. Performance bonuses are often a part of severance pay when your income is impacted significantly by bonuses, commissions, or other incentive compensation rather than a base salary alone. Performance bonuses may be calculated as part of your severance pay, or you may be compensated for pending bonuses.
• Equity compensation. Equity compensation, such as stock options, restricted stock units, or deferred compensation plans, can also impact a severance agreement. These terms outline how you can use these benefits after separation.
• Healthcare benefits. Many executive severance agreements have terms that require an employer to continue healthcare coverage after your employment. These benefits can be financially significant, as the average health insurance premium for family coverage through an employer is $7,258 a year.
• Release of legal claims. This provision of a severance agreement requires you to waive your right to file certain employment-related claims against your employer in exchange for your severance benefits. Before agreeing to a severance package, you should consider whether you have any reason to file a claim against your employer. Extra rules apply when a release covers age discrimination claims, and they affect how long you get to review the agreement before it becomes final.
• Confidentiality agreements. Confidentiality agreements can prohibit you from disclosing important business information. Sometimes, a confidentiality provision also includes the terms of the severance agreement itself.
• Non-Compete or non-solicitation clauses. Some employers wish to put non-compete or non-solicitation clauses into an agreement to restrict employment with competitors or communication with former clients. However, this can limit your employment opportunities, making it important to analyze the specific terms and consider their impact on your future. There are situations where signing one still makes sense, and others where the restriction costs far more than the severance is worth.
• Return of company property. Many agreements require an executive to return company property. This can include laptops, mobile devices, confidential documents, ID badges, and other business materials.

Reach Out to The Law Office of Michelle Cohen Levy, P.A., for Strategic Legal Guidance

Severance agreements are hugely impactful on your career potential, legal rights, and finances. At The Law Office of Michelle Cohen Levy, P.A., we use a deep understanding of Florida severance agreement laws and employment contracts to spot unfair executive severance agreements and negotiate for fair outcomes for employees.

Whether you are ending your employment with Deloitte, Lockheed Martin, Abbot Laboratories, or another Florida employer, we can help establish a fair agreement that supports your transition.

FAQs

What Are the Provisions of a Severance Agreement?

The provisions of a severance agreement are the specific terms and clauses included in the agreement. They outline the legal rights and responsibilities of both the executive and the employer. Depending on your severance agreement case, provisions could involve severance pay, health insurance continuation, the release of legal claims, and non-compete agreements.

What Are the Common Severance Terms?

Common severance terms involve the specific terms of severance pay and non-compete agreements. Severance pay terms can include limits on the amount or duration of severance pay, what bonuses and other compensation are included, and how stock options are to be handled. Non-compete agreements often have specific terms regarding what positions and companies you must avoid, and how long the non-compete is valid for.

What Are Red Flags in a Severance Agreement?

Some common red flags in a severance agreement include overly broad non-compete clauses, vague or unfavorable payment terms, unusually extensive releases of legal claims, or short deadlines that pressure you to sign before fully reviewing the agreement. If you notice these red flags, or any other terms and provisions that you are unsure about, you should hire a severance agreement lawyer to evaluate the agreement and explain your next steps.

Why Should You Hire a Severance Agreement Lawyer?

A severance agreement lawyer can be an invaluable source of guidance when you are separating from a company. A lawyer can review your agreement, explain complex provisions, and identify negotiable terms. Based on their findings, they can advise you on whether you should accept the agreement or negotiate unfavorable details. During negotiations, a lawyer can communicate on your behalf with your employer and present evidence to support your case.

Learn How The Law Office of Michelle Cohen Levy, P.A., Can Help

An experienced Fort Lauderdale C-suite executive lawyer can help you review a severance agreement, explain your rights, and pursue a severance package that protects your immediate financial interests as well as your long-term professional goals. Contact us to set up a consultation with a skilled severance agreement attorney.