Navigating Corporate Layoffs in Chicago: What Tech and Corporate Professionals Need to Know About Severance

October 26, 2026

Corporate restructuring has become increasingly common as companies adapt to changing markets, new technologies, and shifting business priorities. For employees, however, a restructuring, reduction in force (RIF), or position elimination can be unexpected and raise important questions about what comes next. 


Whether you are a tech, sales, finance, or executive professional at major employers such as Google, Salesforce, Cisco, Morningstar, Uber, or Caterpillar, a layoff can be a significant career and financial disruption. While large companies often provide standard severance packages, employees should remember that a severance agreement is a legal contract and terms are negotiable, the key is to find leverage to successfully negotiate. 


What Should You Review in a Severance Agreement? 

The amount of severance pay is only one part of the agreement. Before signing, corporate professionals should carefully review provisions addressing: 

Severance and compensation: Understand how much you will receive and how bonuses, commissions, equity, and benefits are treated. 

Release of claims: Determine which legal claims you may be giving up by signing. 


Restrictive covenants: Review non-compete, non-solicitation, and confidentiality provisions that could affect your future employment. 

Non-disparagement and confidentiality: Understand what you can and cannot say or disclose after leaving the company. 


Illinois Protections for Corporate Employees 

The Illinois Freedom to Work Act places restrictions on certain non-compete and non-solicitation agreements, including earnings thresholds that determine when these covenants may be enforceable. The law also establishes requirements surrounding notice and an employee's opportunity to consult with an attorney. 



If your severance agreement includes a restrictive covenant, it is important to understand how Illinois law applies to your specific circumstances rather than assuming the provision is automatically enforceable. 


Can You Negotiate Your Severance? 

A severance agreement may not be as final as it first appears. Depending on the circumstances, an attorney may be able to negotiate for: 

A higher severance payment 

Additional time to negotiate 

Modified restrictive covenants 

Changes to confidentiality or non-disparagement provisions 

Clarification regarding bonuses, commissions, or equity 

For workers, professionals, and executives, negotiating these terms can be particularly important because the agreement may affect both immediate compensation and future career opportunities. 


Before You Sign, Know Your Options 

If you have received a severance agreement following a layoff, restructuring, or position elimination, consider having it reviewed before signing. Understanding the terms of the agreement can help you make an informed decision about your next steps. 

Have questions about your severance agreement in Chicago? Book a consultation with a Kaplan attorney for a severance agreement evaluation. 

This article is provided for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. Employment laws can vary depending on the circumstances. 


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