New York City Severance Agreement Lawyer
If your employer has offered you a severance agreement, you may have more negotiating leverage than you realize. A severance agreement can affect your compensation, benefits, bonus payments, equity, references, confidentiality obligations, restrictive covenants, and your ability to pursue potential employment claims.
Before signing a severance agreement, it is important to understand exactly what you are receiving, what rights you may be giving up, and whether the proposed terms adequately protect your interests. An experienced New York City severance agreement lawyer can review the agreement, identify potential legal and financial issues, evaluate potential negotiating leverage, and negotiate with your employer when appropriate.
For more than 25 years, our law firm has represented employees in employment matters and severance negotiations, including executives, financial professionals, technology employees, and other professionals. We have experience reviewing and negotiating severance agreements involving compensation, bonuses, equity, benefits, restrictive covenants, releases of claims, and other employment-related provisions.
If you have recently received a severance agreement, do not assume that the employer’s first offer is necessarily the best offer available to you. The terms of a severance package may be negotiable.
Do I Need a Lawyer to Review My Severance Agreement?
You are not necessarily required to hire a lawyer before signing a severance agreement, but having an experienced employment attorney review the agreement can help you understand the legal and financial consequences of signing it.
A severance agreement is a contract. It may provide you with severance pay or other benefits in exchange for releasing certain claims or agreeing to other obligations.
An attorney reviewing your agreement may evaluate:
- The amount and timing of severance payments
- Salary continuation or lump-sum payments
- Bonuses and commissions
- Stock options, restricted stock, or other equity compensation
- Accrued paid time off and other compensation
- Health insurance and COBRA-related issues
- Releases and waivers of legal claims
- Confidentiality provisions
- Non-disparagement provisions
- Non-compete and other restrictive covenants
- Non-solicitation provisions
- Cooperation obligations
- References and employment-verification language
- Return-of-property requirements
- Tax-related provisions
- The circumstances surrounding your termination
- Potential discrimination, retaliation, wage, contract, or other employment claims
The goal is not simply to determine whether you can sign the agreement. The goal is to determine whether the agreement is in your best interests and whether there are terms that should be changed before you sign.
What Does a Severance Agreement Lawyer Review?
A severance agreement may contain considerably more than a promise to pay you a certain amount of money.
Severance Pay
An attorney can review the proposed severance amount, payment schedule, conditions attached to payment, and whether the proposed compensation is consistent with the circumstances of your separation.
Bonus and Commission Compensation
If you were expecting a bonus, commission, incentive payment, or other compensation, the agreement should be reviewed carefully to determine how those amounts are treated following your separation.
Equity Compensation
Executives and employees of technology, financial, and other companies may have stock options, restricted stock units, or other equity interests. The treatment of vested and unvested equity can be an important part of a severance negotiation.
Health Insurance and Benefits
Health insurance and other benefits can represent a substantial portion of an employee’s overall compensation. The agreement should be reviewed to determine what happens to those benefits after employment ends and whether the employer will contribute toward continuation coverage or other benefits.
Release of Claims
One of the most important provisions in many severance agreements is the release of claims.
By signing a release, an employee may agree not to pursue certain legal claims against the employer relating to employment or termination. The scope of the release should therefore be carefully examined before signing.
Confidentiality and Non-Disparagement
Your agreement may contain provisions restricting what you can disclose about your employer, the agreement, or your employment.
A non-disparagement clause may also restrict statements about the employer or its employees. Depending on the language and circumstances, these provisions may be negotiable.
Restrictive Covenants
A severance agreement may contain a non-compete, non-solicitation provision, confidentiality restriction, or another restrictive covenant.
Whether a particular restriction is enforceable depends on the specific language and circumstances and the law that applies. An attorney can review the provision and, where appropriate, negotiate its scope, duration, or removal.
References
Employees may also be able to negotiate the terms under which an employer will respond to future employment inquiries.
Depending on the circumstances, you may want to request a neutral reference, an agreed-upon reference letter, or specific employment-verification language.
Can a Lawyer Negotiate My Severance Package?
Yes. A severance agreement is often negotiable, although the extent of the negotiation depends on the circumstances.
An attorney may negotiate issues involving:
- The amount of severance
- The payment schedule
- Bonus or commission payments
- Equity compensation
- Health insurance benefits
- Treatment of paid time off
- References
- Confidentiality provisions
- Non-disparagement provisions
- Non-compete and other restrictive covenants
- The scope of the release
- Cooperation obligations
- Other contractual provisions
The employer may have provided a standard agreement, but that does not necessarily mean every provision is beyond discussion.
Can a Lawyer Increase My Severance?
A lawyer may be able to negotiate a larger severance payment or a more favorable overall package, depending on the circumstances.
The potential leverage does not necessarily come from simply asking the employer for more money. An attorney may identify issues that increase your negotiating leverage, including:
- Potential discrimination claims
- Retaliation concerns
- Wrongful-termination issues
- Contractual rights
- Unpaid wages, commissions, or bonuses
- Equity compensation issues
- Restrictive covenants
- Problems with the proposed release
- Issues involving the circumstances of your termination
- Other potential employment-law claims
Potential claims do not automatically mean that an employee will receive additional severance. However, where legitimate legal or contractual issues exist, they may provide negotiating leverage.
The objective is to understand the full value and risk of the situation before deciding what terms to request.
What Can I Negotiate in a Severance Agreement?
The answer depends on the agreement and the circumstances of your employment, but potentially negotiable provisions can include:
1. Severance Amount
The most obvious issue is the amount of money the employer is offering.
2. Payment Timing
You may be able to negotiate whether severance is paid as a lump sum or over time, depending on the employer’s proposal and applicable considerations.
3. Bonus and Commission
If you were expecting compensation that has not yet been paid, the agreement should address how those amounts will be treated.
4. Equity
Stock options, RSUs, restricted stock, and other equity awards may require special consideration.
5. Health Insurance
You may be able to negotiate employer contributions toward health insurance premiums or other benefits.
6. References
You may request a neutral reference or agreed-upon language for future employment verification.
7. Non-Disparagement
The language may be negotiated, including whether the obligation is mutual.
8. Confidentiality
The scope of confidentiality obligations may be reviewed and, where appropriate, narrowed.
9. Non-Compete and Non-Solicitation Provisions
An attorney can evaluate restrictive covenants and negotiate their scope, duration, or removal when appropriate.
10. Release of Claims
The precise claims and rights being released should be carefully examined before you agree to the provision.
What Should I Look for Before Signing a Severance Agreement?
Before signing, you should understand both sides of the exchange: what you receive and what you give up.
A severance agreement may provide additional compensation or benefits in exchange for a release of claims and other obligations.
At a minimum, review:
- How much severance you will receive
- When you will receive it
- Whether payment is contingent on compliance with the agreement
- What happens to bonuses and commissions
- What happens to equity compensation
- What happens to health benefits
- Whether you are releasing potential legal claims
- Whether the release covers claims you may not realize you have
- Whether there are confidentiality restrictions
- Whether there is a non-disparagement provision
- Whether there is a non-compete or other restrictive covenant
- Whether you have ongoing cooperation obligations
- What the agreement says about references
- Whether the agreement contains provisions concerning attorneys’ fees or enforcement
- Whether any deadlines apply to accepting the agreement
How Can a Severance Lawyer Help Me Leverage My Position?
Effective severance negotiation begins with understanding the employee’s position and the employer’s potential concerns.
An attorney may investigate the circumstances surrounding the termination and identify potential claims or contractual issues that could affect the negotiation.
Potential issues can include discrimination based on characteristics protected by applicable law, retaliation, wage and compensation disputes, breach of contract, or other employment-law issues.
Potential claims do not automatically mean that an employee will receive additional severance. However, where legitimate legal or contractual issues exist, they may provide negotiating leverage.
The objective is to understand the full value and risk of the situation before deciding what terms to request.
What Rights Do I Give Up When I Sign a Severance Agreement?
This depends on the specific agreement.
A severance agreement may contain a release under which you agree not to pursue certain claims against your employer. The agreement may also impose continuing obligations concerning confidentiality, non-disparagement, restrictive covenants, cooperation, or other matters.
This is why an employee should not evaluate a severance offer based solely on the dollar amount.
The important question is:
What am I receiving in exchange for the rights and obligations I am agreeing to?
An attorney can review the release and other provisions and explain what the agreement could mean for your particular situation.
Are Severance Agreements Required in New York?
Generally, New York law does not require an employer to provide severance pay simply because an employee’s employment ends. Where there is no written or oral policy or agreement requiring severance, New York generally does not require an employer to provide severance pay.
However, the circumstances can differ where an employment agreement, employer policy, collective bargaining agreement, or other arrangement provides for severance or other separation benefits.
Even when an employer is not legally required to offer severance, the employer may choose to offer a severance package in exchange for an agreement containing a release and other obligations.
New York’s No Severance Ultimatums Act — S372A
New York lawmakers passed the No Severance Ultimatums Act (S372A) in June 2026. The legislation would amend New York Labor Law to establish additional protections concerning severance agreements, including notice of an employee’s right to consult an attorney, a minimum consideration period, and a post-signing revocation period.
Important: S372A should not be described as an enacted New York law unless and until its status changes.
The legislation provides for, among other provisions, a 21-calendar-day period to consider a severance agreement and a seven-calendar-day revocation period after execution. The bill also addresses circumstances under which an employee may shorten the applicable periods.
The status of this legislation should be confirmed before relying on its proposed protections. Employees should also be aware that other federal or state laws may provide applicable protections depending on the circumstances.
Because legislation and employment law can change, consult an attorney regarding the law applicable to your particular severance agreement.
How Long Do I Have to Review a Severance Agreement?
The answer depends on the circumstances and the rights being waived.
Certain federal requirements apply to waivers of age-discrimination claims under the Older Workers Benefit Protection Act. For an individual waiver of an ADEA claim, federal law generally requires at least 21 days to consider the agreement and seven days after signing to revoke it, assuming the statutory requirements apply. Different rules can apply to certain group termination programs.
Other severance agreements may be governed by different requirements.
Do not assume that you have unlimited time to review an agreement. Look carefully at the deadline stated in the agreement and seek legal advice promptly if you are considering negotiation.
Should I Sign a Severance Agreement Immediately?
You should understand the agreement before signing it.
Even when an employer presents a severance agreement as a standard document, the agreement may contain provisions affecting your future employment, legal rights, compensation, confidentiality obligations, or ability to pursue certain claims.
If you believe you may have a discrimination, retaliation, wage, contract, or other employment claim, signing a release without understanding its effect could have significant consequences.
Severance Agreements for Executives and Professionals
Severance negotiations can become particularly significant for executives and highly compensated professionals.
Our firm has experience reviewing and negotiating severance arrangements involving:
- CEOs and other executives
- Financial professionals
- Banking and finance employees
- Financial analysts
- Technology professionals
- Employees of technology companies
- Corporate professionals
- Retail employees
- Manufacturing employees
- Employees affected by reorganizations and reductions in force
Executive severance agreements may involve additional issues concerning bonuses, equity compensation, deferred compensation, employment contracts, restrictive covenants, benefits, and executive compensation.
Each agreement should be evaluated based on the individual’s employment relationship, compensation structure, circumstances of separation, and applicable law.
Severance Agreements Following Layoffs and Reductions in Force
Employees who are laid off as part of a reduction in force may receive a severance agreement that differs from an agreement offered in an individual termination.
The circumstances surrounding a group layoff can also be relevant to the analysis of potential employment claims and federal requirements governing certain releases.
For employees age 40 or older, federal law contains specific requirements for waivers of age-discrimination claims, and additional requirements can apply to certain group termination programs.
If you are part of a reduction in force, it can be particularly important to have the agreement reviewed before the applicable deadline.
Can I Negotiate a Non-Compete in a Severance Agreement?
A severance agreement may contain a non-compete or another restrictive covenant.
The enforceability and scope of a restrictive covenant can depend on the specific language, the employee’s position, the employer’s interests, the circumstances in which the restriction was imposed, and applicable law.
Rather than assuming that a non-compete is either automatically enforceable or automatically invalid, an attorney should review the specific provision.
Potential negotiation issues can include:
- Duration
- Geographic scope
- Covered business activities
- Covered customers or clients
- Employee solicitation
- Employee recruiting
- Confidential information
- Carve-outs and exceptions
A lawyer may be able to negotiate a narrower restriction or seek its removal as part of the overall severance negotiation.
What About a Non-Disparagement Clause?
A non-disparagement provision may restrict statements about your employer or other individuals associated with the company.
These provisions should be reviewed carefully because their scope can vary substantially.
Possible negotiation issues include whether the provision is mutual, what constitutes prohibited conduct, whether truthful statements are addressed, and what exceptions apply.
The exact language matters.
What About COBRA and Health Insurance?
Health insurance can be an important component of a severance negotiation.
When employment ends, an employee may have rights concerning continuation of employer-sponsored health coverage under COBRA or other applicable laws. The financial impact of continued coverage should be considered when evaluating the overall value of a severance package.
Depending on the circumstances, an employee may seek an employer contribution toward health insurance premiums or other benefits as part of the negotiation.
Because health-benefit rights can depend on the particular plan and circumstances, legal and benefits advice may be appropriate.
What Happens to Unemployment Benefits When I Receive Severance?
Severance or dismissal payments can affect the timing or eligibility for New York unemployment benefits in certain circumstances.
Because unemployment eligibility involves separate rules and individual circumstances, employees receiving severance should review the applicable New York Department of Labor requirements rather than assuming that receiving severance automatically makes them eligible or ineligible for benefits.
How Much Does a Severance Agreement Lawyer Cost?
The cost of having a severance agreement reviewed or negotiated can depend on factors such as:
- The length and complexity of the agreement
- Your compensation level
- Whether you are an executive
- Whether potential employment claims must be evaluated
- Whether negotiations with the employer are necessary
- Whether litigation or another employment matter is involved
Ask the attorney about the fee arrangement during your initial consultation so you understand what services are included and how fees will be calculated.
Speak With a New York City Severance Agreement Lawyer
If you have received a severance agreement from your employer, the decision about whether to sign it should not be based solely on the amount of money being offered.
The agreement may affect your legal rights, compensation, benefits, future employment, and continuing obligations.
For more than 25 years, our firm has represented employees in employment matters and severance negotiations. We can review your severance agreement, discuss potential negotiating leverage, and help you understand your options.
Contact our New York City employment law firm to schedule a consultation regarding your severance agreement.
Call [PHONE NUMBER] or [REQUEST A CONSULTATION].
This page provides general information and is not a substitute for legal advice. Employment laws and the status of legislation can change, and the application of the law depends on the facts and circumstances of each individual matter.