Executive Severance Agreements in Broward County: What You Need to Know Before Signing

By Michelle Cohen Levy

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Employment Law

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Last Modified on Feb 11, 2026

If you have been recently terminated from a job, your employer may ask you to sign a severance contract for you to receive payments for a certain time following your termination. If you are unsure what to watch for in an executive severance agreement, a Fort Lauderdale employment lawyer can help. We at The Law Office of Michelle Cohen Levy, P.A., can explain how executive severance agreements in Broward County work.

Economic Context of Executive Severance Agreements in Broward County

Many companies, such as Spirit Airlines and Silver Airways, are based in Broward County. The average severance payment in Florida is $72,138 annually, or $34.68 per hour. Compared to nationwide severance payments, this is lower than the national average, which is $96,532. In fact, it is the state with the lowest average severance payment amount. Fort Lauderdale has the seventh-highest average severance payment in Florida, with $91,953 annually, or $44.21 per hour.

What Is an Executive Severance Agreement?

An executive severance agreement is a contract issued to someone who has been recently terminated from a company. These agreements will grant someone severance, payments, and other kinds of benefits for a short while following termination. Florida law does not require companies to provide severance to terminated employees, but many employers choose to provide it, especially if a company has been downsized or closed down. Understanding when and why companies offer severance packages in Florida can help you evaluate whether the offer you received is fair and reasonable.

Items that can be included in a severance package include:

• Many months of salary (usually at least 12 months, depending on how the company works)
• Stock options
• Health insurance continuation
• Pay bonus
• An outplacement service to help you transition to a new position

Severance payments are calculated based on the time an employee has worked at a company and their tier in the company. Severance payments are either given during a fixed time period, such as for 12 or 18 months, or based on a calculation of months at the company and experience. Severance pay is usually based on how much an employee was paid while working.

Executive severance agreements are different from general severance agreements. These are aimed at high-level employees whose roles have been eliminated for reasons such as a company merger. Those who have voluntarily been terminated are also entitled to a severance package.

What to Watch for in an Executive Severance Agreement

Under federal law, you are allowed to sign a severance agreement within seven days or more, depending on your employer and your age. Under the Older Workers Benefit Protection Act (OWBPA), workers over 40 have 21 days to sign a severance agreement. If there have been group layoffs, the timeframe is increased to 40 days.

Some executive severance agreements may have conditions where you are not allowed to pursue legal action against the company for the following reasons:

• Wrongful termination
• Discrimination
• Harassment

If you have been wrongfully terminated, experienced discrimination, or suffered harassment in the workplace, you may want to pursue legal action in the future, so these conditions may not be good in your agreement.

What to Do About an Unfair Severance Agreement

You are allowed to negotiate an executive severance agreement prior to signing it. Make sure to read every clause and condition to see if it meets your needs. If you might want to file a business law case against the company in the future due to reasons such as discrimination or wrongful termination, check that this is allowed in the contract. If it is not, try to renegotiate.

If your employer cannot or refuses to renegotiate your executive severance agreement, signing it may not be the right option for you. Your rights must be protected; if signing a severance agreement with terms that would go against them, you should not allow that to happen. A trusted employment lawyer can go over your executive severance agreement to protect your interests. For a deeper look at what these contracts typically contain, our guide on executive severance agreements in Broward County walks through the fine print step by step. An attorney can also review your agreement against Broward County business laws to see if it is even legally valid.

FAQs

What Should I Do Before Signing a Severance Agreement?

It is crucial to go over a severance agreement carefully before signing. You do not have to sign a severance agreement immediately. Depending on your age and your company’s policies, you can take as little as a week or as many as 40 days to sign a severance agreement. This can give you enough time to consider your options and review the agreement, either on your own or with a trusted business attorney.

What Are the Red Flags in a Severance Agreement?

Red flags in a severance agreement can include:

• Unclear instructions about payments and benefits
• The company not allowing you to pursue legal action if you choose to do so
• Unknown nondisclosure agreements

It is important to read through your severance agreement before signing. That way, you can make sure each condition is agreeable. If not, you should try to negotiate with your employer prior to signing it.

When Should I Not Accept a Severance Package?

You should not accept a severance package if it does not meet your needs. You are allowed to negotiate with your employer about your severance package to make sure it does. If your employer refuses to change certain clauses that you disagree with, you should not accept that severance package.

What Are Common Severance Package Mistakes?

Common severance package mistakes include:

• Conditions that do not follow local or federal laws
• Terms that do not take into account older employees’ age
• Clauses that waive rights that cannot be waived
• Agreements to waive your right to file claims in the future

If your current severance package has any of these kinds of mistakes, you should try to renegotiate. It is important to look out for these mistakes before signing an agreement.

Hire a Business Lawyer

Your employer may provide you with an executive severance agreement after you have been let go from your job. If you are having trouble understanding an executive severance contract and need guidance, we at The Law Office of Michelle Cohen Levy, P.A., can review your agreement and protect your interests. Contact our office today to set up a consultation with us. Don’t wait, hire a business lawyer for your case. We also speak Spanish.