When the end of an employment relationship arrives, whether due to layoffs, restructuring, or termination, it generally comes with a critical and complex document: the severance package. While some employees may be tempted to accept what’s offered and move on, those familiar with employment law in New York know that severance agreements are negotiable, and often include terms that significantly affect one’s financial future and legal rights.
As experienced employment attorneys in New York City, we at Levine & Blit have spent decades reviewing, negotiating, and litigating severance-related matters. From high-level executives in Fortune 500 companies to professionals in creative industries and finance, we’ve seen the full spectrum of severance offers and helped clients maximize their packages.
If you suspect that termination is around the corner, whether it’s because of internal restructuring, management changes, or subtle shifts in your workload, now is the time to act. At Levine & Blit, we’ve developed a proven strategy to help employees secure severance packages they otherwise would not be entitled to. Our approach is unlike anything offered by any other law firm, and we don’t reveal how it works—because that’s what clients hire us for.
Our strategy is discreet, effective, and designed for your unique situation, especially if you’re still employed but seeing the warning signs. Don’t wait until you’re out the door. Contact our New York City labor and employment law attorneys now at 646-461-6838 and let us put our method to work for you to evaluate, negotiate, and secure a fair severance package in New York.
👉Also Read: 8 Legal Reasons to Have a New York Lawyer Review Your Severance Package
What Is a Severance Package in New York?
A severance package in New York typically refers to a combination of compensation and benefits provided to an employee upon termination. Severance may include:
- Lump-sum payments or continued salary over a period of time
- Payment for accrued but unused vacation or PTO
- Extension of health benefits (often through COBRA)
- Outplacement services
- Release of claims and confidentiality agreements
- Non-compete or non-solicitation clauses
- Stock options or deferred compensation payouts
Contrary to popular belief, New York law does not require employers to provide severance unless it is stipulated in a contract, collective bargaining agreement, or company policy. However, employers frequently offer severance in exchange for something valuable: a general release of claims, which waives your right to sue them in the future.
Why Employers Offer Severance
Employers are strategic when offering severance packages. Their goals may include:
- Preventing lawsuits for wrongful termination, discrimination, or retaliation
- Controlling public relations, especially in high-profile or sensitive cases
- Enforcing restrictive covenants such as non-compete or non-disparagement clauses
- Protecting proprietary information and trade secrets
Awareness of these motivations is essential for negotiating leverage. An experienced employment law attorney in New York can identify employer vulnerabilities (like discriminatory motives or pending complaints) that can be used to secure a better deal.
👉Also Read: Does Severance Pay Stop When You Get a New Job? Insights from a New York Severance Attorney
Key Legal Considerations in New York Severance Agreements
At-Will Employment Doesn’t Bar Negotiation
New York is an at-will employment state, meaning employers can terminate employees for any reason that is not illegal. However, this does not mean an employee has no negotiating power. For example, if your termination follows a protected complaint (e.g., reporting harassment, requesting FMLA leave), that opens the door to potential legal claims, which gives you leverage in severance discussions.
The Release of Claims Clause
Nearly every severance package in New York includes a release of claims clause. This waiver usually covers:
- Discrimination (race, gender, disability, age, etc.)
- Retaliation and harassment
- Wage and hour violations
- Wrongful termination
- FMLA and ADA violations
Once you sign, you typically lose the right to sue your employer for these issues, even if they are valid. That’s why severance should never be signed without legal review, especially if there’s a potential legal violation underlying your termination.
Older Workers Benefit Protection Act (OWBPA)
For employees over 40, the OWBPA (part of the federal ADEA) requires that:
- Severance agreements must be written in clear, understandable language.
- Employees must be given 21 days to review the agreement (or 45 days in a group layoff).
- Employees must be given 7 days to revoke after signing.
Employers often fail to meet these requirements, rendering the waiver unenforceable—another point a skilled attorney can use to renegotiate terms.
Non-Compete and Confidentiality Clauses
New York courts scrutinize non-compete clauses closely but will enforce them if they’re reasonable in duration, geography, and scope. Many severance agreements include new or expanded non-compete clauses. Accepting such terms without negotiation may impair your ability to find new work, particularly in specialized industries like tech, finance, or media.
👉Also Read: How to Secure Severance in New York When Termination is Looming: Levine & Blit’s Exclusive Approach
How to Evaluate a Severance Offer
When analyzing a severance package in New York, an employment attorney considers several factors:
Value of Legal Claims
Do you have a viable claim for unlawful termination, retaliation, discrimination, or wage violations? Even if you don’t plan to file a lawsuit, identifying these claims strengthens your bargaining position.
Your Position and Length of Employment
Executives, managers, and long-term employees often receive more generous severance due to their seniority or contractual terms. A standard formula may be one or two weeks’ pay per year of service—but that can and should be adjusted depending on your role and circumstances.
Company Precedents
Has the company offered more favorable severance to similarly situated employees in the past? Employment attorneys can request these comparators during negotiations.
Post-Employment Restrictions
Are you being asked to accept restrictions that weren’t in your original employment agreement? If so, these are negotiable. Don’t trade away your right to work elsewhere lightly.
Tips for Negotiating Your Severance Package in New York
Don’t Sign Immediately
You are never required to sign a severance agreement on the spot. Always ask for time to review the document. If you are over 40, you may be entitled to 21 or 45 days.
Ask for Severance Even If It’s Not Offered
Just because an employer hasn’t offered severance doesn’t mean you can’t ask. If your departure is abrupt, comes after reporting misconduct, or involves unfair treatment, you may have grounds to request compensation.
Request Written Confirmation of Benefits
Clarify details like COBRA coverage, continued vesting of stock options, bonuses owed, or commissions earned. Get everything in writing.
Be Professional, But Strategic
Tone matters. The goal is to negotiate from a position of calm confidence, not confrontation. Having an attorney communicate on your behalf can help maintain this balance.
What to Do If Severance Is Denied or Unfair
If an employer refuses to negotiate or offers a severely unfair severance package, you may have legal recourse. This is especially true if your termination involved:
- Protected activity, such as whistleblowing or FMLA leave
- Discriminatory motives (workplace discrimination)
- Violation of employment contract terms
- Retaliation for reporting sexual harassment or wage issues
Skilled New York City employment lawyers can help you file a claim with the EEOC or New York State Division of Human Rights, or even pursue litigation when warranted.
👉Also Read: Understanding Severance Pay Rights in New York: How Much Can You Expect to Receive?
How Our NYC Employment Attorneys at Levine & Blit Can Help Maximize Your Severance Package in New York
At Levine & Blit, we understand that severance negotiations are rarely straightforward and that most employees are not equipped to identify the legal and strategic landmines embedded in severance agreements. Far too often, people sign these documents out of pressure, fear, or the false assumption that there’s nothing more to gain.
But the reality is this: severance packages are negotiable, and with the right legal support, they can be dramatically improved. Our experienced employment law attorneys in New York go far beyond surface-level reviews. We use our deep knowledge of employment law and high-stakes negotiation to position our clients for maximum advantage, even when the employer insists the offer is “final.”
Here’s how we help protect your interests and unlock hidden value in your severance package in New York:
Identify Hidden Legal Claims
Most employees don’t realize that a severance negotiation is also a legal minefield. Employers may offer severance not just as a goodwill gesture, but as a preemptive defense against potential lawsuits. Our seasoned New York labor law attorneys thoroughly assess your employment history for any legal violations you may not even be aware of, such as age discrimination, wrongful termination, FMLA leave violations, or retaliation for whistleblowing. These potential claims become powerful leverage in negotiations.
Strategize Your Leverage Points
Severance is all about leverage. Our New York employment lawyers have mastered the art of identifying what matters most to employers, whether it’s avoiding negative publicity, preventing regulatory scrutiny, or containing internal unrest. We use these pressure points to strengthen your bargaining position. At Levine & Blit, we don’t just react to your employer’s offer, but we develop a custom strategy to proactively shape the negotiation in your favor.
Negotiate Better Terms
It’s not just about the check. Our NYC employment lawyers can help you negotiate for a higher severance payout, longer continuation of health benefits, outplacement services, stock options vesting, and favorable tax structuring. We also scrutinize restrictive covenants like non-compete and non-disparagement clauses to ensure you are not unjustly constrained after leaving the company.
Protect You from Legal Traps
Many severance agreements are filled with legal landmines: confidentiality clauses, waiver of rights, future claims releases, and complex language that can come back to haunt you. Our attorneys ensure that you do not unknowingly sign away your rights or agree to terms that harm your future career prospects or income potential.
With Levine & Blit in your corner, you get more than a review—you get strategic legal firepower. We turn a standard severance into an opportunity.
Why Choose Our New York City Employment Law Attorneys?
Severance negotiations in New York differ from those in other jurisdictions because of the state’s robust legal framework and the concentration of high-profile employers. At Levine & Blit, our NYC employment attorneys are especially adept at handling:
- Executive compensation disputes
- High-value severance packages
- NDA and media-sensitive severance matters
- Wall Street, healthcare, and the entertainment industry contracts
- Discrimination and harassment claims under New York City Human Rights Law, one of the most employee-friendly laws in the nation
At Levine & Blit, we are proud to represent clients; not companies. Our legal team brings over 100 years of combined experience to the negotiation table. We’ve secured multi-million dollar severance settlements in cases involving wrongful termination, retaliation, and high-profile departures.
👉Also Read: New York Severance Agreement Requirements: Essential Guide for Employees
Know Your Value, Protect Your Future
A severance agreement is more than just a final paycheck. It is a legal document that affects your rights, your finances, and your future career. In New York, where employment laws offer substantial protections and many severance agreements are designed to shield employers from liability, understanding your rights is vital.
Before you sign anything, talk to our experienced employment attorney in New York. Whether you’re a laid-off tech worker, a finance executive, or a media professional leaving under sensitive circumstances, our team at Levine & Blit is ready to evaluate your case, protect your interests, and secure the severance you deserve.
Call 646-461-6838 or contact us online to set up a confidential consultation with one of New York’s most trusted employment law firms.