Being presented with a severance package at the end of your employment can be overwhelming, especially when the terms are dense, time-sensitive, and filled with legal jargon. While it may appear to offer financial security, what’s often overlooked is that severance agreements are drafted by your employer’s legal team with one primary goal: to protect the company’s interests.
In New York—an at-will employment state—it’s especially critical to understand exactly what you are agreeing to before signing anything. A severance agreement can contain provisions that limit your future employment, waive your right to pursue legal action, or even misrepresent what you are already entitled to under the law. Below, we outline eight compelling legal reasons why having a New York severance agreement lawyer review your package isn’t just advisable—it’s essential to protecting your rights and securing the compensation you deserve.
Before you sign anything, let the experienced New York employment lawyers at Levine & Blit review your severance agreement. We can help you understand the fine print, protect your rights under New York and federal law, and negotiate for the terms you truly deserve. Contact us today at 646-461-6838 to schedule a confidential consultation.
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Ensuring Compliance with New York Labor Laws
Many employees are unaware that employers are generally not legally obligated to provide severance packages—unless such provisions are expressly included in an employment contract. In most cases, severance agreements are designed primarily to serve the employer’s interests, not the employee’s.
Severance agreements must adhere to New York labor laws and employment law to protect employee rights. A skilled severance agreement attorney ensures these employment agreements align with regulations, preventing the waiver of essential rights. Specific laws, such as the Age Discrimination in Employment Act (ADEA), dictate timeframes for consideration and revocation for employees over 40, making compliance crucial.
Additionally, certain clauses like confidentiality and non-disparagement might violate employee rights under the National Labor Relations Act, affecting how employees can discuss workplace issues. Adhering to New York labor regulations safeguards your rights and prevents future complications.
Identifying Hidden Clauses in Severance Agreements
Hidden clauses in severance agreements can significantly impact your future employment opportunities. Non-compete, confidentiality, and non-disparagement clauses are common yet often overlooked. These clauses can limit your ability to secure new employment or start your own business.
Non-compete clauses, for instance, can prevent you from working in your field for a certain period or within a specific geographic area. Confidentiality clauses might restrict your ability to discuss your former employer, and non-disparagement clauses can limit what you can say about your employment experience.
A skilled New York City severance agreement attorney can identify potential pitfalls and explain their implications. This knowledge allows you to make informed decisions and avoid unintended career counseling restrictions while seeking advice regarding the circumstances surrounding your situation.
Understanding Legal Waivers
Severance agreements often include legal waivers, which require you to relinquish the right to sue your employer and restrict pursuing legal action. A severance agreement typically includes these waivers, which can significantly affect your career and financial future, and need to be understood thoroughly.
Legal counsel can help you comprehend the implications of these waivers. A NYC severance agreement lawyer can assess clauses that might limit legal recourse, such as those regarding discrimination claims or wrongful termination, including potential legal fees. This understanding helps you avoid unintentional forfeiture of your legal rights.
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Managing Financial Aspects of Severance Packages
A comprehensive understanding of the financial components within your severance package is essential to ensuring the agreement aligns with your short- and long-term financial goals. Severance arrangements may include wage continuation, retirement plan considerations, and other monetary benefits that require careful evaluation. These elements can directly influence your income stability and future retirement security.
It is also important to assess whether the package includes unpaid bonuses, continuation of health insurance coverage, or contributions toward COBRA premiums—each of which can substantially enhance the overall value of the severance offer. Additional company-provided benefits, such as memberships, tuition reimbursement, or subscription services, should not be overlooked during negotiations.
Moreover, handling equity-based compensation such as company stock and retirement contributions demands a clear understanding of company policy and tax implications. A detailed legal and financial review by an experienced severance agreement attorney ensures that all monetary and non-monetary components are properly addressed, fully optimized, and reflective of your entitlements under the law.
Negotiating Better Terms
Negotiating better terms in your severance agreement can lead to enhanced benefits. Employees often negotiate for better health coverage, financial relief, and job search assistance. Potential claims can provide leverage during negotiations.
Non-compete clauses, for example, can significantly restrict an employee’s ability to find new work. A skilled severance agreement attorney can clarify the implications of these restrictive covenants and negotiate less restrictive terms.
A severance agreement might supersede a prior non-compete clause if it includes an ‘Entire Agreement’ provision, but employers can easily modify this. An experienced severance lawyer can assist in securing a more favorable outcome by negotiating better terms.
Addressing Unpaid Wages or Benefits
Under New York law—including statutes such as the Wage Theft Prevention Act—employers are legally obligated to pay all earned wages and accrued benefits upon termination of employment. This includes unpaid salary, overtime, commissions, accrued vacation days, and other forms of earned time off.
During severance negotiations, it is essential to ensure that your severance package explicitly accounts for all outstanding compensation owed to you. This may include unpaid wages, earned but unpaid bonuses, and any accrued but unused vacation or paid time off. These amounts are separate from severance pay and should not be included as part of any general severance offer.
A properly reviewed severance agreement will distinguish between earned compensation and discretionary severance benefits, helping you secure full and fair payment for your prior work. Addressing these legal obligations upfront is vital to protecting your rights and avoiding any forfeiture of income to which you are lawfully entitled.
Protecting Against Potential Legal Claims
Severance agreements often contain clauses that restrict employees’ rights, such as waivers that limit the ability to pursue legal claims. It’s essential to review these clauses carefully to protect against potential discrimination claims related to race, gender, disability, and other protected characteristics.
Unlawfully broad severance terms in severance agreements and separation agreements may be declared void, but other lawful provisions could still be enforceable. Reviewing the agreement with a severance agreement lawyer ensures that your rights are protected and potential pitfalls are identified in a legally binding contract.
Reviewing Restrictive Covenants
Restrictive covenants in severance agreements, like non-compete clauses, can severely hinder future employment opportunities. Reviewing these clauses ensures they are not overly broad and do not unduly restrict your job search.
Understanding the duration and geographic scope of non-compete agreements is crucial for assessing their enforceability. An agreement may be deemed unenforceable if it includes overly broad restrictions. A lawyer can help negotiate terms that protect your future employment options.
Evaluating the Impact on Health Insurance Coverage
Health insurance benefits are a critical component of severance packages during a critical transition period. Negotiating for the extension of employer-paid health insurance can provide necessary coverage during the transition.
Clarifying if the severance package includes options for continuing health coverage under the existing plan is important. Understanding the specifics of COBRA coverage is crucial to maintain health benefits post-employment. An attorney can ensure that the severance agreement specifies the duration of health coverage following termination.
Seeking Legal Advice Before Signing
Consulting an experienced severance package lawyer before signing any agreement is essential to protecting your rights and achieving the most favorable terms. An attorney can help you evaluate the full scope of the agreement, identify potentially harmful provisions, and ensure that you receive fair and appropriate compensation.
Under proposed legislation, severance agreements may be required to include a notice informing employees of their right to seek legal counsel before signing. This legal safeguard exists to help you understand the implications of the agreement and prevent the inadvertent waiver of important rights, such as the ability to pursue claims for discrimination, retaliation, or unpaid compensation.
At Levine & Blit, we offer free case evaluations to individuals reviewing severance agreements. Our experienced NYC employment attorneys are here to guide you through the process, advocate for your interests, and help you make informed decisions that protect your future.
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Protect Your Rights—Consult Levine & Blit’s New York Severance Agreement Lawyers Today
If you’ve been presented with a severance package, don’t make the mistake of signing it without fully understanding what you’re agreeing to—and what you may be giving up. Severance agreements are often drafted to protect the interests of your employer, not yours. At Levine & Blit, we are committed to leveling the playing field.
Our seasoned New York severance lawyers bring decades of experience to the negotiation and review of severance agreements. We know the tactics employers use and the clauses they often include—such as non-compete provisions, waivers of legal claims, and vague release language—that can significantly impact your professional and financial future. We take the time to explain your rights, assess the fairness of the proposed terms, and, when necessary, negotiate stronger, more favorable outcomes on your behalf.
With a track record of success and a reputation for aggressive advocacy, Levine & Blit stands out as a trusted resource for employees throughout New York. Whether you’re an executive, professional, or hourly worker, we will ensure that your severance agreement serves your interests, not just your employer’s.
Contact Levine & Blit today or reach out online to schedule a confidential consultation. Let us help you protect your rights, secure your future, and move forward with confidence.