A severance agreement is a legally binding contract that outlines the terms of your departure from an employer. It may include compensation, benefits, and restrictions on your future employment or legal rights. Before signing, it is important to understand what you are giving up and whether the agreement offers adequate severance pay. A careful review helps you make informed decisions and avoid unintended consequences.
Why Choose Us?
Employees in New York come to Orin Kurtz for clear, practical guidance on severance agreements and other important workplace decisions.
- Focused representation for employees, with guidance tailored to your individual situation
- More than two decades of employment law experience across a wide range of workplace matters
- Clear explanations of severance terms, so you understand what you are signing and what rights may be affected
- Strategic insight into negotiation opportunities, including compensation and restrictive clauses
- Practical, straightforward advice to help you move forward with confidence
Don’t sign a severance agreement before speaking with an experienced employment law attorney. Connect with us today!
What Is a Severance Agreement and Why Does It Matter?
A severance agreement is typically offered when employment ends, whether due to layoffs, restructuring, or disputes. In exchange for severance pay and other benefits, you are often asked to release legal claims against your employer.
This matters because once you sign, your ability to pursue claims for issues such as discrimination, retaliation, or unpaid compensation may be permanently waived. The agreement may also include obligations that affect your future, such as:
- Non-compete or non-solicitation restrictions
- Confidentiality requirements
- Non-disparagement clauses
- Cooperation provisions
Even when the financial terms seem straightforward, these additional provisions can have implications for your career and legal rights.
What Should Be Reviewed in a Severance Agreement?
Every agreement is different, but several key areas should always be reviewed carefully:
Compensation and Benefits
- Severance pay amount and timing
- Bonus eligibility or prorated payments
- Health insurance continuation (COBRA or employer-paid coverage)
- Equity, stock options, or deferred compensation
Release of Claims
- Scope of claims you are waiving
- Whether the release includes unknown or future claims
- Compliance with federal and New York requirements
Restrictive Covenants
- Non-compete and geographic scope
- Non-solicitation of clients or employees
- Duration and enforceability under New York law
Other Key Terms
- Confidentiality and non-disparagement obligations
- References or neutral reference clauses
- Return of company property
- Deadlines for signing and revocation periods
An experienced employment lawyer can help ensure the agreement reflects what was discussed and does not include terms that go beyond what is reasonable or enforceable.
Can a Severance Agreement Be Negotiated?
In many cases, yes. Severance agreements are often presented as final, but they are frequently negotiable depending on the circumstances. An experienced employment lawyer can negotiate to:
- Increase severance pay or extend benefits
- Narrow restrictive covenants
- Clarify ambiguous language
- Adjust confidentiality or non-disparagement terms
- Secure a positive reference or mutual non-disparagement provision
- Obtain a release of potential claims by your employer
Employers may be more open to negotiation than expected, especially when there are potential legal risks or unresolved issues tied to the separation. Having informed representation can give you leverage and make a meaningful difference in the outcome.
When Should You Have a Severance Agreement Reviewed?
You should have a severance agreement reviewed before signing, even if the deadline feels short. Many agreements include strict timelines, but rushing to sign can lead to unintended consequences.
Review is especially important if:
- You believe your termination may involve discrimination, retaliation, or other legal concerns
- The agreement includes non-compete or restrictive clauses
- You are a senior employee or have complex compensation
- The terms differ from what was discussed verbally
- You are unsure what rights you may be waiving
Even a brief review can clarify your options and help you decide whether to accept, reject, or negotiate the agreement.
Talk to a Severance Agreement Lawyer in New York
A severance agreement can shape your financial position, your legal rights, and your next career move. If you have been presented with an agreement, taking the time to review it carefully can make a meaningful difference. That’s where Orin Kurtz can assist you. Contact us today for a confidential consultation.
Frequently Asked Questions
Do I have to sign a severance agreement?
No. Severance agreements are voluntary. However, declining to sign may mean you do not receive the offered benefits.
How long do I have to review a severance agreement?
It depends on the agreement. Some include specific deadlines, while others are negotiable. Certain employees, such as those over 40, may have additional time under federal law.
Can I negotiate my severance package?
Often, yes. Many terms—including compensation and restrictive covenants—can be negotiated depending on your circumstances.
What happens if I sign without a review?
Once signed, the agreement is typically binding. You may waive important legal rights, making it difficult to pursue claims later.
Is a non-compete enforceable in a New York severance agreement?
Non-competes in severance agreements will be subject to scrutiny and often will not be enforceable.