Severance pay – also referred to as severance payment or separation payment – is a type of financial compensation provided to employees upon termination of their employment due to layoffs, downsizing, or company restructuring. In some cases, severance pay is also offered to those who voluntarily resign or are fired.
While severance pay can help mitigate the financial impact of losing employment, you need to consult with an experienced New York employment law attorney before accepting it. Accepting severance pay typically involves signing a severance agreement, which often includes a release of claims and several other clauses that can affect your right to pursue legal action against your employer and find better employment opportunities in the future.
At Levine & Blit, we believe that no employee should be forced to sign away their rights in exchange for financial assistance. Our seasoned New York employment lawyers know what kind of clauses employers tend to include in severance agreements and how they can impact employees’ rights and interests. We can make sure you receive the compensation you are entitled to without giving up your legal rights in any way.
Call us today at 646-461-6838 to schedule a free consultation with a top-rated New York severance pay lawyer.
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Is Severance Pay Mandatory in New York?
No, it is not. According to the Fair Labor Standards Act (FLSA) and the New York State Human Rights Law (NYSHRL), employers don’t need to offer severance packages to employees who are laid off or terminated. Your employer can choose to provide you with a severance package – depending on their company policy, the terms of your employment contract, and various other factors.
Benefits Included in Severance Packages in New York
The most common types of benefits included in severance packages are:
Severance Payment: The most important benefit included in a severance package is the severance pay, which is typically offered as a one-time lump sum payment. In some cases, your employer might also allow you to receive severance pay in installments.
Continuation of Salary or Wages: In some cases, your employer might offer to continue paying your salary or wages for a specified period following your termination.
Continued Health Insurance Coverage: Your severance package might include provisions for continued health insurance coverage for a certain period, allowing you to maintain your healthcare benefits while you search for new employment or explore alternative coverage options.
Outplacement Services: Your employer might offer outplacement services as part of their severance package, which might include career counseling, interview training, pay negotiation training, job search advice, and networking opportunities to help you find new employment opportunities.
Retirement Benefits: Depending on your age and length of service, your severance package might include retirement benefits like pension contributions, retirement account contributions, or access to retirement planning resources.
Other perks and benefits that might be offered as part of your severance package include reimbursement for relocation expenses, payment of unused vacation or sick leave, and access to employee assistance programs for counseling and support.
How Is Severance Pay Calculated in New York?
The method of calculating severance payments can vary from one employer to another depending on company policy and employment contract terms. The most common factors taken into account while calculating severance pay include your length of employment, your position in the company, your salary, your past work performance, and the circumstances associated with your termination.
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Risks Associated with Accepting a Severance Package without Consulting with a New York Employment Attorney
Waiving Legal Rights
By signing a severance agreement without legal review, you might unintentionally waive certain legal rights or claims you might have against your employer – including claims for wrongful termination, discrimination, or violations of employment laws.
Inadequate Compensation
Without legal advice, you might not know whether the severance package you are offered is fair. As a result, you might end up accepting a package that does not adequately compensate you for your years of service, salary level, or the circumstances of your termination.
Unfavorable Terms
Severance agreements often contain clauses that might restrict your ability to work for your employer’s competitors or disclose certain information about your company and its products or services. Without legal review, you might unknowingly agree to unfavorable terms that can severely limit your future employment opportunities.
How the New York Employment Attorneys at Levine & Blit Can Negotiate a Higher Severance Pay for You
- We can review your employment contract, company policies, relevant laws, and the circumstances surrounding the termination to understand the basis for negotiation.
- We can identify potential legal claims or issues that can strengthen your negotiating position. This could include claims related to wrongful termination, discrimination, breach of contract, or violations of employment laws.
- We can develop persuasive arguments to support your request for a higher severance package. This may involve highlighting your achievements and contributions to the company, emphasizing any potential legal claims or issues, and presenting market data or industry standards for severance pay.
- If your employer makes a counteroffer in response to our offer, we can carefully evaluate the terms and advise you on whether to accept, reject, or counter the offer. We can continue to negotiate on your behalf until a satisfactory agreement is reached.
👉Also Read: Securing Your Future: The Role of Law Offices in Severance Agreement Signings
Our New York Severance Pay Lawyers Can Help You Get the Best Possible Deal from Your Employer!
If you have been offered a severance package by your employer, you need to talk to a lawyer before signing the agreement. Accepting a severance package can have long-term implications – ranging from waivers of legal rights to limitations on future employment opportunities, affecting your ability to receive unemployment benefits and many more.
At Levine & Blit, we have highly experienced New York employment attorneys who have years of experience in drafting, negotiating, and reviewing severance agreements. From assessing the fairness of the offer to negotiating for a higher severance package, we can advocate for you every step of the way and make sure your rights and interests are protected.
Do not settle for less than you deserve. Call us today or contact us online to schedule a free consultation with a seasoned New York severance package lawyer.