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Employment Litigation

Confidentiality and Severance Agreement

Drafting comprehensive severance agreements requires hours of research across multiple legal sources, verification of jurisdiction-specific enforceability rules, and careful attention to evolving compliance requirements like NLRB regulations. Attorneys must manually search for current best practices, cross-reference state laws on restrictive covenants, and ensure release language meets legal standards—all while managing tight deadlines during sensitive employment separations.

Automation ROI

Time savings at a glance

Manual workflow4.5 hoursAverage time your team spends by hand
With CaseMark12 minutesDelivery time with CaseMark automation
EfficiencySave 22.5x time with CaseMark

The Problem

Drafting comprehensive severance agreements requires balancing employer protection with legal compliance across multiple jurisdictions. Attorneys must navigate OWBPA requirements, state-specific restrictive covenant laws, and evolving NLRA standards while ensuring every provision is enforceable and tailored to the specific employment relationship.

The CaseMark Solution

CaseMark automates the creation of legally sound, jurisdiction-specific confidentiality and severance agreements. Our AI analyzes your employment documents, applies relevant federal and state law requirements, and generates comprehensive agreements with proper OWBPA compliance, enforceable releases, and tailored restrictive covenants.

Key benefits

How CaseMark automations transform your workflow

Generate complete severance agreements in 12 minutes vs. 4.5 hours manually

Automatic compliance verification with NLRB rules and state-specific employment laws

AI-powered extraction of relevant facts from employment records and termination documents

Built-in legal research with citations from verified sources like bar associations and legal databases

Jurisdiction-specific enforceability guidance for non-compete and non-solicitation clauses

What you'll receive

Parties
Recitals
Severance Payments and Benefits
Release of Claims
Confidentiality Obligations
Non-Disparagement
Non-Compete and Non-Solicitation
Governing Law and Dispute Resolution
Entire Agreement and Severability
Signatures

Document requirements

Required

  • Employee Information
  • Employment Agreement or Offer Letter

Optional

  • Company Severance Policy
  • Performance Documentation
  • Benefits and Equity Information
  • Prior Agreements

Perfect for

Employment litigation attorneys handling employee separations
In-house counsel managing workforce reductions or terminations
HR legal teams coordinating severance negotiations
Labor and employment law firms representing employers
Corporate legal departments handling executive departures

Also useful for

This workflow is applicable across multiple practice areas and use cases

Transactional employment attorneys regularly draft severance agreements for executive departures, workforce reductions, and employment separations as part of their core practice.

This workflow directly addresses transactional employment matters including confidentiality, non-compete, and separation agreements which are fundamental transactional documents rather than litigation-focused.

M&A transactions frequently require severance agreements for executives and key employees during workforce integration, change of control events, and post-closing restructuring.

Severance agreements are critical transaction documents in M&A deals, particularly for managing executive transitions and ensuring smooth integration while protecting confidential deal information.

Corporate governance attorneys draft severance agreements for board members, executives, and officers during leadership transitions, ensuring compliance with corporate policies and protecting company interests.

Executive separations and severance arrangements are governance matters requiring careful drafting of confidentiality, non-compete, and release provisions to protect corporate interests.

Corporate General72% relevant

Corporate attorneys handle employee separations, executive departures, and workforce reductions requiring compliant severance agreements with appropriate confidentiality and restrictive covenant protections.

General corporate practice regularly involves drafting separation agreements as part of managing employment relationships, protecting trade secrets, and ensuring smooth business operations.

Frequently asked questions

Q

How does CaseMark ensure OWBPA compliance for employees over 40?

A

CaseMark automatically incorporates all Older Workers Benefit Protection Act requirements when the employee is age 40 or older. This includes specific ADEA waiver language, advisement to consult an attorney, the appropriate 21-day or 45-day consideration period based on whether it's an individual or group termination, and clear explanation of the 7-day revocation right with proper execution instructions.

Q

Can the tool adapt restrictive covenants based on state law?

A

Yes, CaseMark tailors non-compete and non-solicitation provisions to the specific jurisdiction where the employee worked and resides. The system applies state-specific enforceability standards, adjusts temporal and geographic scope accordingly, and excludes or modifies restrictive covenants in states like California where they are largely unenforceable. It also addresses whether separate consideration is required beyond the severance payment.

Q

What happens if I don't have all the employee information available?

A

CaseMark can work with partial information and will flag missing details that are critical for a complete agreement. The system will generate bracketed placeholders for missing information like specific compensation amounts, equity details, or benefits continuation terms, allowing you to complete these sections once the information becomes available while still producing a comprehensive draft structure.

Q

Does the agreement include required notices under the Defend Trade Secrets Act?

A

Yes, every agreement generated by CaseMark includes the verbatim whistleblower immunity notice required under the Defend Trade Secrets Act of 2016. This notice informs employees of their right to confidentially disclose trade secrets to government officials or attorneys for the purpose of reporting suspected legal violations, ensuring compliance and avoiding potential penalties for omission.

Q

How does CaseMark handle severance calculations and payment structures?

A

CaseMark structures severance payments based on the information you provide about the employee's compensation, tenure, and your company's policies. The system calculates prorated bonuses, accrued PTO in accordance with state law requirements, addresses equity compensation treatment, and specifies payment timing, tax withholding, and contingencies. You can customize whether payments are lump sum or installments and set appropriate clawback provisions for breach.