Severance and the Non-Compete Clause What to Watch For

In this episode of The Layoff Podcast, Lucas and Luna dig into a question that rarely gets asked until it's too late: what happens when your severance agreement includes a non-compete clause? They walk through the real-world case of a mid-level product manager at a Boston tech firm who signed a standard severance package, only to discover that the non-compete barred her from working at any competitor in the region for 12 months — including the job offer she'd already accepted. Lucas breaks down why non-competes are increasingly common in severance agreements, how states like California and Colorado have banned them while others haven't, and the specific language you should look for before signing. Luna shares data from a 2025 FTC study showing that roughly one in five severance agreements now contain some form of non-compete or non-solicit clause. They discuss practical strategies: asking for a waiver, negotiating a carve-out for a specific industry, or pushing for a shorter duration. This episode gives you the exact questions to ask your attorney and the red-flag phrases that should make you pause before cashing that check. #Severance #NonCompete #JobLoss #CareerAdvice #EmploymentLaw #Layoff #Termination #EmployeeRights #FTC #CaliforniaLaw #ColoradoLaw #BostonTech #ProductManager #NonSolicit #Negotiation #Careers #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo