A severance agreement is a legal contract offered when your employment ends. In exchange for severance pay or other benefits, employers often ask employees to waive important legal rights, including the ability to bring certain employment claims. Before signing a severance agreement in Westchester County, it is important to understand what you are agreeing to, whether the terms are negotiable, and whether signing is in your best interests.
Why Employees Turn to Fearless Justice
Losing a job can be stressful enough without having to make important legal decisions under tight deadlines. Many employees receive a severance agreement with only a few days to review it and are left wondering whether they should sign, negotiate, or walk away.
At Fearless Justice, we represent employees—not employers—in workplace disputes. We carefully review severance agreements, explain how the proposed terms may affect your legal rights, and help you determine whether negotiating for more favorable terms makes sense.
Employees work with us because:
- We represent employees exclusively.
- We provide straightforward advice about severance agreements.
- We identify provisions that may limit your legal rights.
- We evaluate whether you may have employment claims worth preserving.
Let us put our experience and the law to work for you. Connect with us today.
What Is a Severance Agreement?
A severance agreement is a contract between an employer and an employee whose employment is ending. In many cases, the employer offers compensation or benefits that the employee would not otherwise receive in exchange for a release of legal claims.
Contrary to what many people believe, New York employers generally are not required to provide severance pay unless an employment contract, collective bargaining agreement, or company policy creates that obligation.
Every agreement is different. Some contain relatively straightforward terms, while others include extensive legal provisions that may affect an employee long after the employment relationship ends.
What Does a Severance Agreement Usually Include?
Although no two agreements are identical, many include provisions addressing:
- Severance pay or salary continuation
- A release of legal claims against the employer
- Confidentiality requirements
- Non-disparagement provisions
- Return of company property
- Continuation of certain benefits
- Restrictive covenants, such as non-compete or non-solicitation provisions, when applicable
Some agreements are relatively balanced, while others may contain provisions that deserve closer review before you sign.
Should You Sign a Severance Agreement Right Away?
Generally, no. Employers often present severance agreements during an already stressful time and may include deadlines for acceptance. While those deadlines should be taken seriously, they do not necessarily mean you should sign immediately without understanding the consequences.
Once signed, a severance agreement may permanently waive valuable legal rights. Depending on the language, you could be giving up the ability to pursue claims involving discrimination, retaliation, harassment, unpaid wages, or wrongful termination.
Before making a decision, it is often worthwhile to have the agreement reviewed so you understand both the benefits being offered and the rights you may be surrendering.
Can You Negotiate a Severance Agreement?
Yes, in many situations. Some employees assume the agreement is final because it was prepared by the employer. In reality, many severance agreements can be negotiated before they are signed.
Negotiations may involve increasing severance pay, extending health insurance benefits, revising confidentiality provisions, modifying non-disparagement language, clarifying references for future employers, or removing restrictive terms that could affect future employment.
Whether negotiation is appropriate depends on the specific circumstances, including the employee’s position, the reason for the separation, and whether potential legal claims exist.
What Rights Could You Be Giving Up?
One of the most significant parts of a severance agreement is the release of claims.
A release often prevents an employee from filing certain legal claims against the employer after signing the agreement. Depending on the language, this may include claims involving discrimination, retaliation, workplace harassment, wrongful termination, or other employment-related disputes that arose before the agreement was signed.
Because these waivers can have lasting consequences, employees should understand exactly which claims are being released and whether accepting the severance package is an appropriate tradeoff.
Special Rules for Employees Age 40 and Older
Federal law provides additional protections for many employees who are age 40 or older.
When an employer asks an employee in this age group to waive certain federal age discrimination claims, the agreement generally must satisfy specific legal requirements. Depending on the circumstances, employees may be entitled to a period of time to consider the agreement and, after signing, an additional period during which they may revoke their acceptance.
These requirements are intended to help employees make informed decisions rather than feeling pressured to sign immediately.
Why Having an Attorney Review a Severance Agreement Matters
A severance agreement is more than a paycheck. It is a legal document that may affect your future rights and opportunities.
An attorney can explain what each provision means, identify language that may be negotiable, determine whether the agreement fairly reflects your circumstances, and evaluate whether you may have legal claims that should be considered before signing.
Even when an agreement appears straightforward, having it reviewed can provide valuable clarity before making a final decision.
Speak With a Westchester County Severance Agreement Lawyer
Signing a severance agreement is often a one-time decision with long-term consequences. Having an attorney review the agreement before signing can help you avoid giving up valuable legal protections unnecessarily. That’s where Fearless Justice can assist you.
Our firm represents employees throughout Westchester County in severance agreement reviews, wrongful termination matters, discrimination claims, retaliation cases, and other employment law disputes. We can review your agreement, explain your options, and help you determine the best path forward. Schedule a consultation today.
Frequently Asked Questions
Does my employer have to offer severance pay?
Not usually. In most cases, New York employers are not legally required to provide severance unless an employment contract, collective bargaining agreement, or company policy requires it.
Can I negotiate a severance agreement?
Often, yes. Many employers are willing to negotiate certain provisions before the agreement is signed, particularly when legal claims or other considerations are involved.
Can I sue after signing a severance agreement?
It depends on the language of the agreement. Many severance agreements include releases that waive an employee’s right to pursue certain legal claims. An attorney can explain how those provisions apply to your situation.
How long do I have to review a severance agreement?
The answer depends on the circumstances and the type of claims involved. Employees age 40 or older who are asked to waive certain federal age discrimination claims may have specific review and revocation periods required by law.
Should I have an attorney review my severance agreement?
Having an attorney review a severance agreement can help you protect your rights, identify negotiable provisions, and determine whether signing the agreement is in your best interests.