Being presented with a severance package can be one of the most important moments in your career, particularly if the termination was unexpected. It’s also one of the most legally delicate. In New York, the law does not automatically require employers to provide severance unless it’s part of an employment agreement, union contract, or company policy. That means any severance offer you receive is a negotiation, and in negotiations, knowledge and strategy are everything.
A severance agreement is a legally binding contract with long-term implications for your finances, reputation, and even future career options. By working with an experienced Westchester severance lawyer, you can evaluate the offer through the lens of New York’s severance laws, identify potential pitfalls, and push for terms that genuinely protect your interests.
👉Also Read: Breaking Down the 10 Key Clauses in NY Severance Agreements – Updated for 2025
Why Severance Fairness Matters
For many employees, severance is a short-term financial safety net that eases the transition between jobs. With that said, severance agreements may contain clauses that impact your rights far beyond the payout. You may be asked to:
- Waive the right to sue for discrimination or wrongful termination
- Agree to non-compete or non-solicitation clauses
- Commit to strict confidentiality or non-disparagement terms
- Return company property and comply with intellectual property restrictions
If these obligations are not balanced with fair compensation and clear protections, you could be signing away valuable rights without adequate benefit.
New York Severance Laws
Unlike some jurisdictions, NY State severance laws generally don’t guarantee severance pay unless there is a contractual obligation. Moreover, there are important state and federal laws that intersect with severance negotiations:
- New York Labor Law—governs final wage payments, accrued vacation payouts, health insurance benefits, unemployment insurance benefits, and certain employer obligations upon termination.
- Federal anti-discrimination laws—including Title VII, the Americans with Disabilities Act, and the Age Discrimination in Employment Act can influence severance agreements because employers often seek waivers of these claims.
- WARN Act obligations—Both federal and New York State versions of the Worker Adjustment and Retraining Notification Act require certain employers to provide advance notice or pay in lieu of notice in cases of mass layoffs or plant closures.
Your Westchester severance lawyer will help determine whether these laws apply to your situation and how they can be leveraged for a better package.
👉Also Read: How To Maximize Outplacement Support and Employee Benefits in Your Executive Severance Package in New York
Key Components of a Severance Package
Before you can decide if an offer is fair, you must understand its full scope. A comprehensive severance package typically includes:
1. Payment Terms – Lump sum vs. periodic installments, calculation method (e.g., years of service × weekly pay).
2. Health Benefits – Continuation of medical, dental, and vision insurance (often via COBRA), and whether the employer will cover premiums.
3. Retirement Accounts – Handling of vested and unvested benefits, employer contributions, and stock options.
4. Outplacement Services – Career counseling, resume assistance, and job placement help.
5. Confidentiality and Non-Disparagement – Restrictions on discussing your employment or termination.
6. Non-Compete or Non-Solicitation – Geographic and time-based restrictions on working in your field.
7. Waivers and Releases – Legal rights you’re agreeing to relinquish.
A skilled attorney can uncover terms that appear standard but may be overly restrictive or ambiguous.
👉Also Read: Understanding the Impact of the No Severance Ultimatums Act on New York Severance Packages
Questions to Ask Your Severance Lawyer
When meeting with your Westchester severance lawyer, preparation is key. The following questions will help you assess whether your package is fair and identify areas for negotiation.
1. How Was My Severance Amount Calculated?
Understanding the employer’s formula, whether based on years of service, position, or company policy, helps you see if it is consistent and competitive with industry norms.
2. Am I Waiving Any Legal Claims I Might Have?
Many agreements require you to release the employer from liability. Your lawyer should explain exactly what rights you would be giving up and whether those claims could be valuable.
3. Are the Non-Compete and Non-Solicitation Clauses Reasonable?
Overly broad restrictions can prevent you from working in your field for months or years. Your lawyer can negotiate to narrow these terms or remove them entirely.
4. Will My Health Benefits Continue, and for How Long?
Medical coverage gaps can be costly. Ask if the employer will extend coverage beyond COBRA requirements or subsidize premiums.
5. Are There Tax Implications I Should Prepare For?
Severance payments may have complex tax consequences. A lawyer can help you plan accordingly or coordinate with a tax advisor.
6. How Does This Agreement Affect My Unemployment Benefits?
Some severance arrangements delay or reduce eligibility for unemployment. Your attorney should clarify this before you sign.
7. Is the Confidentiality Clause Too Broad?
If the clause prevents you from discussing the circumstances of your departure even with potential employers, it could be harmful to your job search.
8. Can We Negotiate Outplacement or Additional Support?
If the payout is fixed, you might still be able to negotiate non-cash benefits like career coaching or job placement assistance.
9. How Quickly Do I Need to Decide?
Some agreements impose short deadlines, which can be coercive. Your lawyer can request more time for review.
10. Could This Agreement Impact My Professional Reputation?
Certain clauses, like non-disparagement, can limit your ability to respond to inquiries about your work history. Your lawyer can push for neutral reference provisions.
Additional Questions to Deepen the Review
11. Does the Agreement Comply with NY Severance Laws and Federal Standards?
Your lawyer should ensure the terms meet all legal requirements, particularly in cases involving age discrimination waivers.
12. Is There Language That Could Be Interpreted Against Me Later?
Ambiguity in legal contracts can lead to disputes, and clear wording is essential.
13. What Happens If I Breach a Clause Accidentally?
Some agreements have harsh penalties. Ask your lawyer to clarify and possibly soften these provisions.
14. Can I Receive a Positive or Neutral Reference in Writing?
Reaching an agreement on this point in the contract can enhance your job search prospects.
15. Are There Hidden Offsets or Deductions?
Some severance amounts may be reduced by other benefits or payments. Your lawyer can spot this.
16. Does the Agreement Address Stock Options or Equity?
Equity rights can be valuable and should be explicitly covered.
17. Can We Add a Mutual Non-Disparagement Clause?
This ensures the employer is also bound not to speak negatively about you.
18. Is Arbitration Mandatory?
Mandatory arbitration can limit your ability to bring claims to court. Ask about implications and whether it can be removed.
19. Are There Provisions About Future Rehire?
Some agreements bar you from working for the company again; others leave the door open.
20. What Is the Best Negotiation Strategy for My Circumstances?
A seasoned lawyer will adjust the approach based on your leverage, the employer’s motivations, and industry norms.
Warning Signs of an Unfair Severance Offer
Even without deep legal knowledge, there are red flags that may indicate an offer is not in your best interest:
- Unreasonably Short Review Period – Designed to rush you into signing.
- Overly Broad Non-Compete Clauses – Restricting your career opportunities beyond what is reasonable.
- One-Sided Waivers – You give up all claims without any meaningful benefits in return.
- Ambiguous Language – Creates room for the employer to interpret terms in their favor.
- Lack of Clarity on Benefits – No clear statement about health insurance, retirement, or stock options.
👉Also Read: Essential Employee Rights and Concerns When Signing a Severance Agreement in New York
How Our Severance Lawyer in Westchester Can Help
At Levine & Blit, we are not a general practice law firm that occasionally takes on employment cases. Representing a current or former employee is at the core of what we do, and we never represent employers. This exclusive focus means that every piece of advice we provide and every strategy we develop is individualized to advancing your interests, not balancing them against a corporate agenda.
Our Westchester severance lawyers have built a strong track record of negotiating high-value severance packages for executives, professionals, and employees at all levels across diverse industries, from finance and healthcare to media and technology. Here’s how we make a difference when you’re facing the pivotal decision of whether to accept a severance package.
Conduct Detailed Agreement Reviews
Severance agreements are written in dense legal language that can obscure important details or even bury unfavorable terms deep within the fine print. At Levine & Blit, we perform a clause-by-clause review of your collective bargaining agreement, translating every term into clear, plain English so you know exactly what you are signing.
For example, a seemingly harmless “non-disparagement” clause may be so broad that it effectively prevents you from ever speaking about your former employer—even in ways that could help you network for future opportunities. Similarly, a confidentiality provision might not just protect trade secrets but also bar you from disclosing the agreement’s terms to your spouse or financial advisor.
By carefully reviewing each section, we identify both the benefits and the pitfalls, ensuring you’re informed before you make a decision.
Identify Leverage Points
A fair severance package is not just about what is written in the company’s first offer. It’s about what can be negotiated. Our attorneys in Westchester County look for leverage points that can shift the balance in your favor. These might include:
- Legal protections under NY severance laws and federal employment statutes that the company must comply with.
- Your length of service or history of positive performance reviews can strengthen your bargaining position.
- Industry norms for severance benefits in your role or sector, which can be used to argue for higher payouts.
- Company-specific practices, such as past severance offers made to peers, can highlight inconsistencies or unfair treatment.
In some employment contracts, we may uncover compliance issues, such as failure to pay earned bonuses, unused vacation, or overtime that can be used as negotiation tools.
Negotiate Strategically
Negotiation within the confines of employment law is both an art and a science. We don’t simply demand “more money” and hope for the best. Instead, we build a strategic negotiation plan designed to maximize the financial and non-financial terms of your package.
Financial improvements might involve increasing the number of weeks or months of pay, securing the payment of outstanding commissions, or obtaining lump-sum settlements instead of staggered payments. Non-financial terms can be just as important, such as:
- Removing or narrowing restrictive covenants like non-compete or non-solicitation clauses.
- Extending health insurance coverage beyond what is initially offered.
- Preserving your eligibility for certain retirement benefits.
- Ensuring that the termination is classified as a layoff or position elimination rather than “for cause,” which can affect future job prospects.
Our approach is always measured and evidence-based, giving your employer clear reasons why improving your package benefits both sides.
Protect Your Future
The end of one job should not jeopardize your career trajectory. Unfortunately, some severance agreements are structured in ways that limit your ability to work in your chosen field, restrict your networking opportunities, or tarnish your professional reputation.
We work to ensure that nothing in the agreement unnecessarily restricts your rights or opportunities. For instance, we may push to:
- Limit the scope and duration of non-compete clauses in your employment contract so you can continue working in your field.
- Ensure that references from your employer are neutral or positive, preventing reputational harm.
- Preserve your right to participate in whistleblower activities or report legal violations, even if you sign a confidentiality clause.
By addressing these issues before you sign, we safeguard not only your severance payment but also your long-term professional and financial well-being. Call us at 646-461-6838 or contact us online to set up a confidential consultation.