Severance packages are one of the most fraught areas of employment law—mishandle the language, calculations, or releases, and you're exposed to litigation. Smart labor attorneys position severance review services as a high-value, lower-touch offering that commands premium fees while building client loyalty.
The Market for Severance Review Services
Business owners and HR leaders rarely negotiate severance terms alone. They face regulatory complexity, multi-state considerations, and the constant risk of wrongful termination claims. A severance package review service addresses this directly: you audit the agreement, flag legal exposure, and ensure the release language holds up in court.
Demand is steady. Companies conducting layoffs, restructurings, or separating executives need legal eyes on documents before they're signed. Small to mid-sized businesses especially lack in-house counsel equipped to spot problems like inadequate consideration, vague non-compete language, or state-specific statutory conflicts.
Pricing Models That Work
Flat-fee project work is the most common structure for severance reviews.
- Single package review: $500–$1,500 (basic audit of a non-executive separation agreement)
- Executive severance package: $1,500–$4,000+ (multi-page agreements with equity, deferred comp, clawbacks, or restrictive covenants)
- Batch reviews (3–5 packages during a RIF): $3,500–$8,000 (volume discount, but higher billable value than piecemeal)
The flat fee works because the scope is contained. You're not drafting the severance from scratch; you're reviewing, revising, and certifying. The turnaround is typically 5–10 business days, which appeals to companies managing tight timelines during layoffs.
Some labor attorneys layer on hourly consulting for follow-up questions (severance negotiation strategy, state compliance issues, release enforceability post-signature). Bill at $250–$400/hour for this advisory work.
Positioning Your Expertise
Differentiation matters when competing on severance work. Generic "we review contracts" doesn't win deals. Instead, niche deeper:
Specialize by company size or industry. An employment attorney focused on tech sector severances (with knowledge of equity acceleration, RSU treatment, and California law) commands higher fees than a generalist. Same applies if you specialize in financial services separations or healthcare workforce reductions.
Highlight multi-state compliance. If your client operates in multiple states, the severance package must account for varying notice laws, garden leave rules, non-compete validity, and wage payment deadlines. Emphasize this complexity in your messaging—it justifies premium positioning.
Bundle with related services. Severance review pairs naturally with separation agreement drafting, WARN Act compliance reviews, or post-termination litigation risk assessment. Offering a "separation audit" that includes all three command $4,000–$7,000 and position you as a full severance solutions provider.
Lead Generation and Client Acquisition
HR consultants and employment brokers are your warm referral channel. Build relationships with these intermediaries; they often advise companies on severance strategy and need legal review capacity.
LinkedIn outreach works well here. Target HR managers, CFOs, and general counsel at mid-market companies (500–5,000 employees) with ads focused on "severance package compliance" or "avoid costly separation disputes."
Listing your severance review services on Mercoly connects you directly with business owners searching for employment law help—they can see your pricing, experience, and reviews, making it easier to win leads and close deals quickly.
Red Flags to Address in Marketing
Don't oversell what you can do. Severance work has real limits:
- You cannot guarantee the release will hold (state law, employee circumstances, and litigation risk vary)
- You're not drafting severance packages from scratch in most cases—you're auditing existing drafts
- Timing constraints during layoffs mean you can't conduct deep workplace investigation
Lead with what you can deliver: legal compliance, enforceability assessment, litigation risk flagging, and fastest-turnaround reviews in your market.
Frequently Asked Questions
Q: Should I offer severance package reviews on retainer? Retainer is risky for severance work because demand is unpredictable—some clients need three reviews in a month, others none for six months. Flat-fee projects are more sustainable; you can offer a retainer discount (e.g., $25,000/year for up to 20 hours of severance advice) if the client commits to using you as their go-to counsel.
Q: What's the most common legal issue I'll spot in severance packages? Overly broad or unenforceable non-competes and non-solicits. Many agreements copy boilerplate language without adjusting for state law, resulting in language that a court will strike entirely, leaving no protection for your client's business.
Q: How do I price an executive severance review differently from a standard one? Executive packages include equity treatment, tax gross-ups, deferred compensation, and board/committee removal language—add $1,000–$2,500 to your base fee for the additional review complexity and litigation exposure.
Start with one severance review client this month, set your flat fee, and track how long the work actually takes—your real margins will inform better pricing.