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Severance Agreement

Severance Agreement Attorney in New York City

Losing your job is the last thing anyone expects to happen. It can be a shock to meet with HR and receive a severance agreement to review. The agreement should come with a list of the terms and benefits your employer is offering you. But now, as you try to navigate your future, following the fine print is too complex to handle.

The attorneys of Brown Kwon & Lam can walk you through the severance agreement process to help ensure you receive the package you deserve.

Why Hiring a New York City Severance Agreement Attorney is Crucial

Finding out you’re losing your job can be stressful and emotionally draining. But just because your heart and mind may be in a bad place does not mean you should waive your rights. You should not let your employer dismiss you without proper compensation.

When you are deciding whether to contact a severance agreement lawyer in New York City, it helps to think about the following benefits:

  • Clear explanation of your rights. We help you understand what claims you may have under federal, New York State, and New York City laws before you sign them away.
  • Careful review of complex language. We read the fine print in your agreement, including release, non-compete, and confidentiality provisions, and explain them in straightforward terms.
  • Assessment of the overall offer. We look at severance pay, benefits, and non-monetary terms together so you can see how the package fits your real needs.
  • Guidance on negotiation options. We talk through where there may be room to request changes and how to raise those requests in a constructive way.

When you work with a severance agreement lawyer, you gain a clearer picture of what you are being asked to give up in exchange for the money being offered. We can talk through how the agreement affects any potential discrimination case, retaliation, or wage claims you may have under New York or federal law and whether the release language is broader than it needs to be. For many employees in New York City, this may be the first and only time they negotiate a severance package, while their employer and its counsel have handled these agreements many times before. Having someone on your side who understands common employer strategies helps balance that power and can give you the confidence to slow down, ask questions, and decide whether the offer truly reflects your contributions and circumstances.

Understanding Severance Agreements in New York City

In essence, a severance agreement is a legally binding document that covers the rights and responsibilities of the employee and employer in the event of termination or layoffs. This can include pay, insurance, and other benefits. In some severance agreements, a non-compete and non-disclosure provision will be included as part of the total employment agreement.

The agreement ensures that the employee understands two things:

  • The terms under which they are being let go.
  • What benefits they will receive.

However, this is not necessarily intended to help employees. Many companies use severance agreements to make sure a former employee does not file a lawsuit against the company for wrongful termination.

Once they sign the document, the employee knows that they will receive severance pay. This acts as the incentive for the employee to sign the contract in the first place.

Key Components of Severance Agreements in NYC

While no severance agreements are the same, there are basic elements of a New York City severance agreement employees should be mindful of. 

These include:

  • Severance Pay: Under federal, New York State, and New York City laws, employers are not required to provide severance pay. However, companies often do so to encourage you not to pursue legal action or disclose company information.
  • Medical Benefits: Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), employees are generally entitled to elect continued health insurance coverage for a limited period after termination.

While these are the financial benefits you may be most interested in, there are other factors to include. They are:

  • Time: When presented with a severance package, you must be allotted time to review the terms and conditions of the agreement. Anyone over the age of 40 has 21 days to consider the agreement, and 7 days to rescind the offer after signing, in certain situations under federal law. Only you as the employee can waive the 21-day consideration period.
  • Limitations: If a severance agreement bars you from taking action with the Equal Employment Opportunity Commission, uses complex jargon intended to make you miss the fine details, or appears to stop you from filing a discrimination case, you need to review the contract with an attorney and discuss your options.

Common Issues In New York City Severance Agreements

When you first read a severance package, it may seem like it is only about the amount of money and continuation of benefits you are being offered. In reality, many agreements used by New York City employers contain provisions that can affect your future career, your ability to speak about what happened at work, and your right to pursue claims in courts like the New York Supreme Court or the U.S. District Court for the Southern District of New York. Understanding these less obvious provisions helps you decide whether the offer matches your long-term interests, not just your immediate need for income.

Some employees are surprised to learn that the agreement may include broad non-disparagement or confidentiality clauses that restrict what they can say to coworkers, prospective employers, or even friends and family. Others discover detailed non-solicitation or non-compete restrictions that go beyond what New York law will reasonably allow, especially for employees who did not have access to trade secrets. At Brown Kwon & Lam, we take time to walk through these sections with you so you can see, in practical terms, how they might affect where you can work next and whether there is room to narrow the language.

Another frequent issue in a severance agreement is how the employer characterizes your departure and the scope of the release of claims. The document may say you are resigning, even if you felt pushed out, or it may require you to waive claims under federal, New York State, and New York City human rights laws without acknowledging what you raised internally. We review the release and any cooperation or non-cooperation clauses to identify situations where the wording could be softened, clarified, or made more balanced. By flagging these points early, we can help you decide whether to request targeted changes before you sign so that the final document reflects the reality of your work history and preserves as much flexibility as possible.

Understanding Your Rights: The Importance of Employment Law Education

In today's complex work environment, being informed about your rights as an employee is essential. At Brown Kwon & Lam, we believe that knowledge is power. Understanding employment law can help you navigate workplace challenges, negotiate better severance agreements, and protect yourself from potential legal issues.

Here are some key reasons why educating yourself on employment law is beneficial:

  • Empowerment: Knowing your rights allows you to advocate for yourself effectively.
  • Prevention: Awareness of employment laws can help you recognize and address potential issues before they escalate.
  • Informed Decisions: Understanding the legal landscape enables you to make better choices regarding your career and employment agreements.
  • Negotiation Skills: Being knowledgeable about severance agreements and other employment laws enhances your ability to negotiate favorable terms.
  • Access to Resources: We provide resources and consultations to help you stay informed and prepared.

At Brown Kwon & Lam, we are committed to providing you with the information and support you need to navigate your employment journey confidently. Contact us today to learn more about your rights and how we can assist you in understanding the complexities of employment law in New York City.

How We Review And Negotiate Your Severance Package

Before you sign a severance agreement, we help you understand your rights, evaluate the terms, and determine whether negotiation may be beneficial. 

Our process includes:

  • Learning about your situation: We discuss your employment, separation, and goals.
  • Reviewing the agreement: We analyze severance pay, benefits, release provisions, confidentiality, and post-employment restrictions.
  • Explaining your options: We identify favorable and potentially problematic terms in clear, straightforward language.
  • Negotiating when appropriate: We help negotiate revised terms or communicate with your former employer or its legal counsel on your behalf.
  • Supporting informed decisions: We explain potential outcomes so you can decide whether to accept, negotiate, or decline the offer.

Our goal is to help you make informed decisions while protecting your interests and future career opportunities.

Ensure Your Rights and Compensation Are Protected

If you receive a severance package, you need the experience of an NYC employee rights attorney. We can review the terms of the agreement and help ensure no one is infringing on your rights.

As part of an NYC severance package review, we can also discuss whether the agreement reflects the realities of your role, length of service, and the way your employment ended. In some cases, it may be appropriate to request changes to payment timing, the way your departure is described internally, or restrictions on future employment that could limit your ability to work in your industry. We help you understand how the agreement interacts with protections under New York Labor Law and New York City Human Rights Law so that you are not surprised later by obligations you did not realize you were accepting. Our goal is to put you in a position to make a deliberate, informed choice about signing instead of feeling rushed into a decision.

Frequently Asked Questions

Can I Negotiate The Terms Of My Severance Agreement?

Many severance agreements are negotiable, even when presented as standard forms. You may be able to negotiate severance pay, continued benefits, restrictive covenants, confidentiality provisions, or reference terms. Your bargaining position depends on the circumstances of your departure and the agreement's language. Guidance from a New York City severance agreement lawyer can help you identify terms that may be revised before you sign.

Do I Lose My Right To Sue If I Sign A Severance Agreement?

Many severance agreements require employees to waive certain legal claims in exchange for compensation. The scope of the release varies and may include claims under federal, New York State, and New York City employment laws, although some rights cannot be waived. A severance agreement attorney in New York City can help you understand what claims you may be releasing before signing.

How Much Time Do I Have To Review A Severance Agreement?

The time to review a severance agreement depends on its terms and applicable law. Employees age 40 or older asked to waive federal age discrimination claims may receive specific review and revocation periods under the Older Workers Benefit Protection Act. Because deadlines can be short, guidance is important to help you evaluate the agreement before responding.

Will Signing A Severance Agreement Affect My Ability To Work For A Competitor?

Some severance agreements contain non-solicitation, confidentiality, or other restrictive provisions that may affect future employment. While New York generally disfavors overly broad non-compete agreements, enforceability depends on the specific facts and contract language. Severance agreement attorneys can review these provisions and explain how they may impact your ability to pursue new employment.

 Contact the New York employment attorneys of Brown Kwon & Lam today, and for more information about New York employment contract disputes, visit our website.

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