You’re sitting there, staring at your bank balance, and it’s still the same as yesterday. You signed the paperwork. You did the awkward exit interview. You even turned in your laptop and that weirdly sticky charger. So, where’s the check? Understanding severance release time isn’t just about waiting for a direct deposit; it’s a legal maze involving federal laws, state labor codes, and the specific "revocation periods" that HR usually glosses over in those tiny, 10-point font paragraphs.
It's frustrating. Honestly, it’s more than frustrating—it’s scary when you have a mortgage and no active income.
Most people think they’ll get paid the moment they sign. That’s rarely how it works in the real world. Depending on your age and the state where you worked, you might be legally barred from getting that money for at least a week, sometimes longer. Companies don't do this to be mean (usually). They do it because the Equal Employment Opportunity Commission (EEOC) and the Older Workers Benefit Protection Act (OWBPA) basically force their hand.
The 21/7 Rule: The primary reason for the delay
If you’re over 40, the law treats your signature differently. Under the OWBPA, which is an amendment to the Age Discrimination in Employment Act (ADEA), employers are required to give you 21 days to even consider the severance offer. You don't have to take the full three weeks, but once you do sign, the law mandates a 7-day revocation period.
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This means you can literally call your boss on day six and say, "Psych! I changed my mind," and the contract is void. Because of this, no sane payroll department is going to hit "send" on your money until that eighth day. They want to make sure you can't back out after the cash has already cleared your account. It’s a protection for them, but a waiting game for you.
Even if you’re under 40, many companies apply this 7-day rule across the board just to keep their legal processes uniform. It’s easier for a massive corporation like Google or Amazon to have one standard severance release time for everyone than to calculate individual countdowns based on birthdates.
What about group layoffs?
Things get even slower if you were part of a mass layoff. When a company cuts a significant portion of its workforce—think the massive tech layoffs we saw at Meta or Salesforce—the consideration period often jumps from 21 days to 45 days. This is to give employees time to look at the "decisional unit" data, which is just a fancy way of saying a list of who else got fired and how old they are. It helps you determine if the layoff was actually a disguised attempt to purge older, more expensive workers.
State laws: California vs. The Rest of the World
State laws change the math. In California, for example, the Labor Code is notoriously strict. While severance isn't technically "wages" earned for hours worked, any "final pay" (your last paycheck for hours worked plus accrued vacation) must be paid immediately upon termination if you were fired. If you quit, they have 72 hours.
But severance? That’s a separate beast.
Because severance is an exchange—you give up your right to sue them, they give you money—it’s a contract. In New York, the rules are different. In Texas, they’re even more employer-friendly. If your contract doesn't specify a severance release time, you might be at the mercy of the company's standard payroll cycle. Some companies only run payroll every two weeks or even once a month. If you miss the cutoff because you signed your release on a Friday afternoon, you might be waiting until the next cycle.
The "Net-30" habit
Some corporate accounting departments treat severance like a vendor invoice. They might have a "Net-30" policy, meaning they pay out 30 days after the agreement is fully executed. This is rare for individual employees but common in high-level executive departures where the numbers are large enough to require multiple rounds of internal approvals from the CFO or a board of directors.
Common myths that mess up your timeline
- "I signed digitally, so it's instant." Nope. DocuSign is fast, but the 7-day revocation period is a legal requirement, not a technical one.
- "They said 'lump sum,' so it comes today." Lump sum just means you get it all at once instead of in bi-weekly increments. It doesn't mean "immediately."
- "My boss promised me the check by Monday." Your boss probably doesn't handle payroll. The HR person in a different state or the third-party payroll provider (like ADP or Workday) is the one actually pulling the lever.
Wait. There's also the "mailing factor." Believe it or not, some companies still mail physical checks for severance to ensure they have a paper trail of the "last known address." If it’s in the mail, you’re adding three to five business days to your severance release time purely because of the USPS.
Why HR might be ghosting you
If it’s been two weeks and you haven't heard anything, it might not be a conspiracy. It’s often just administrative sludge.
I’ve seen cases where the person responsible for "releasing" the payment went on vacation. Or, more commonly, the signed document got stuck in an "Approver" queue in a software system. In larger companies, severance payments often require an extra layer of authorization that a standard paycheck doesn't.
If you're worried, check your "Separation Agreement." Look for the section titled "Payment" or "Timing of Consideration." Most well-drafted agreements will say something like, "Payment will be made within 14 days following the expiration of the Revocation Period."
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If it says that, and you're on day 10, you just have to wait.
Negotiating the clock
Can you make it faster? Maybe.
If you are in a financial bind, you can ask for an "expedited" payment during the negotiation phase. While they can't waive the legal 7-day waiting period if you’re over 40, they can agree to process the payment via wire transfer instead of a standard ACH or a physical check. Wires are nearly instant once initiated.
Most people don't think to ask for this. They’re too focused on the dollar amount. But if your rent is due on the 1st and your severance release time looks like it's landing on the 5th, that wire transfer request is a lifesaver.
Tax withholding: The "Bonus" Trap
Another thing that slows down the perception of getting paid is the tax hit. Severance is often taxed at a "supplemental" rate, which is a flat 22% for federal taxes in the U.S. This is different from your normal tax bracket. If you see a smaller amount than you expected, check your pay stub before assuming they short-changed you. The delay might actually be your own bank holding a large, unusual deposit for "verification" purposes.
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Banks get twitchy when a $20,000 or $50,000 deposit suddenly hits an account that normally sees $3,000. That can add another 24 to 48 hours to your wait time.
Actionable steps to take right now
Stop refreshing your bank app every ten minutes. It won't help. Instead, do these things to get clarity on your specific severance release time:
- Read the Revocation Clause: Find the exact number of days you have to "revoke" the agreement. Add one day for processing. That is your earliest possible pay date.
- Verify the Method: Check if the payment is coming via Direct Deposit or a physical check. If you closed the bank account the company has on file, call HR immediately.
- The "Friendly Nudge" Email: If the revocation period ended more than three business days ago, send a polite email to your HR contact. Use this exact phrase: "I'm checking in to confirm the effective date of my separation agreement and see if there is an estimated date for the payment processing."
- Check for "Conditions Precedent": Did you return your keys? Your badge? Your laptop? Some agreements explicitly state that the severance release time doesn't start until all company property is recovered and "processed" by IT.
- Calculate the Tax: Prepare for the "supplemental rate" hit. Don't budget for the gross amount; budget for about 60-70% of it to be safe.
If you’ve done all that and it’s been over 30 days since you signed (and the revocation period has passed), it’s time to look at legal options. Most labor attorneys will give you a quick consultation to see if the company is in breach of contract. But in 95% of cases, the delay is just a mix of federal waiting periods and slow-moving corporate bureaucracy. Stay patient, keep your records, and make sure you've actually returned that sticky charger.