New York Severance Agreement Lawyer

Protect Your Rights

Your employer just handed you a severance agreement. The document is dense, the deadline is tight, and you are not sure whether the terms are fair — or whether signing will cost you the right to pursue legitimate legal claims. You are not alone. Thousands of New York employees sign agreements every year without understanding what they are giving up.

At Joya Law Firm, we review, negotiate, and — when necessary — challenge severance agreements for employees across New York City and the surrounding boroughs. Founded by attorney Kamran Joya, our firm represents employees exclusively. We make sure you understand every clause, fight for better terms, and protect the legal rights you have earned.

What a New York Severance Agreement Typically Includes

A severance agreement is a contract between you and your employer. In exchange for a package of benefits, you agree to certain restrictions — usually including a full release of legal claims. There is no federal or New York state law that requires employers to offer severance. When they do, it is almost always because they want something in return.

A typical New York severance package may include:

Severance pay — often calculated as one to four weeks of pay per year of service, though there is no legal formula
Continuation of health insurance — sometimes through COBRA subsidies or extended employer-paid coverage
Payment for unused vacation or PTO — which may already be owed to you under company policy
Outplacement services — job search assistance or career coaching
Stock or equity vesting — acceleration or forfeiture of unvested shares
A neutral or positive reference letter
Non-disparagement clauses — restricting what both parties can say publicly
A general release of claims — the employer’s primary objective

The release clause is the heart of the agreement. By signing, you typically waive your right to sue for wrongful termination, workplace discrimination, retaliation, unpaid wages, and nearly every other employment-related claim. Once signed, there is generally no going back.

When You Need a Severance Agreement Lawyer

Not every severance agreement requires legal review — but most do. You should consult a severance negotiation attorney in NYC if:

You were laid off or terminated and suspect discrimination, retaliation, or wrongful termination played a role
You are over 40 and the agreement includes an age discrimination waiver (OWBPA requirements apply — more on this below)
The agreement includes a non-compete clause that could restrict your ability to work in your field
You are being asked to waive claims you may not fully understand
The timeline is short — employers sometimes pressure employees into signing within days
Your severance seems low relative to your tenure, role, and the circumstances of your departure
You were part of a group layoff that may trigger WARN Act obligations

A severance package review lawyer does not just read the document. We assess whether you have underlying legal claims that increase your negotiating leverage — and we use that leverage to secure better terms.

Red Flags in New York Severance Agreements

Employers draft severance agreements to protect themselves, not you. Watch for these common red flags:

Overly Broad Release of Claims

Some releases attempt to waive claims you do not even know about yet, including claims under the New York City Human Rights Law (NYCHRL), the New York State Human Rights Law (NYSHRL), Title VII of the Civil Rights Act, and the Americans with Disabilities Act. A well-drafted release should be specific. A release designed to sweep everything under the rug is a warning sign.

Unreasonably Short Deadlines

If your employer gives you only a few days to sign, that urgency benefits them — not you. Under the Older Workers Benefit Protection Act (OWBPA), employees 40 and older must receive at least 21 days to consider the agreement (or 45 days in a group layoff). Employees under 40 have no statutory minimum review period, but responsible employers still provide reasonable time.

Restrictive Non-Compete Clauses

New York courts scrutinize non-compete agreements, and recent legislative efforts have moved toward banning them entirely for most workers. If your severance includes a non-compete, you need a lawyer to assess whether it is enforceable and whether it is worth the trade-off.

Non-Disparagement Provisions Without Mutual Terms

Many agreements prohibit you from saying anything negative about the employer but place no similar restriction on the company. Insist on mutual non-disparagement — or push back on the clause entirely.

No Mention of Cooperation or Future Obligations

Some agreements require ongoing cooperation with the employer — such as participating in litigation, providing testimony, or assisting with transition — without compensating you for that time. These obligations should be clearly defined and limited.

OWBPA Protections for Employees Over 40

If you are 40 or older, federal law provides you with specific safeguards under the Older Workers Benefit Protection Act (OWBPA), an amendment to the Age Discrimination in Employment Act (ADEA). These are not optional — they are legal requirements. If your employer fails to comply, the age discrimination waiver in your severance agreement may be unenforceable.

OWBPA requires:

Written agreement in plain language

The waiver must be understandable to the average employee, not buried in legalese

Specific reference to ADEA rights

The agreement must explicitly state that you are waiving claims under the Age Discrimination in Employment Act

Advice to consult an attorney

Your employer must recommend in writing that you consult with a lawyer before signing

21-day consideration period

You must have at least 21 days to review the agreement (45 days for group layoffs)

7-day revocation period

After signing, you have 7 days to change your mind and revoke your acceptance

Additional consideration

The severance must offer something beyond what you are already entitled to receive

Disclosure of group layoff data (if applicable)

In a group termination, the employer must disclose the job titles and ages of all employees selected and not selected for the layoff

If your employer skipped any of these steps, your waiver of age discrimination claims may be void — even if you already signed.

How a Severance Negotiation Attorney Improves Your Package

Many employees assume a severance offer is final. It is not. Employers expect negotiation — and employees who hire a severance pay attorney in New York consistently achieve better outcomes. Here is how the negotiation process works:

Step 1

Comprehensive Review

We review every provision of your agreement — the release language, restrictive covenants, payment terms, benefit continuation, and any hidden obligations.

Step 2

Evaluate Underlying Claims

We assess whether you have viable claims for wrongful termination, discrimination, retaliation, unpaid wages, or other violations. These claims are your leverage.

Step 3

Calculate Fair Value

We determine what your severance should be based on your tenure, compensation, the strength of any potential legal claims, and current market conditions for your role.

Step 4

Present a Counter-Proposal

We prepare a detailed counter-proposal that articulates why the original offer is inadequate and presents specific, justified demands.

Step 5

Negotiate

We handle all communication with your employer’s legal team. Most negotiations are resolved within one to three rounds of counter-offers. Litigation is rarely necessary at this stage.

Step 6

Final Agreement

Once terms are agreed upon, we review the final document to confirm it reflects the negotiated terms and protects your interests.

Common improvements we negotiate include:

Higher severance payments — often 50% to 200% more than the initial offer
Extended health insurance coverage — additional months of employer-paid COBRA
Removal or narrowing of non-compete clauses
Neutral reference letters with agreed-upon language
Extended deadlines for consideration and transition
Acceleration of unvested equity or bonuses
Mutual non-disparagement instead of one-sided restrictions

What If You Already Signed a Severance Agreement?

If you already signed, your options are more limited — but they may not be gone. There are situations where a signed severance agreement can be challenged:

OWBPA violations — if you are over 40 and the employer did not comply with OWBPA requirements, the age discrimination waiver may be unenforceable
Fraud or misrepresentation — if the employer lied about material facts (such as the reason for your termination or the existence of other claims)
Duress or coercion — if you were pressured into signing under threat or without reasonable time to consider
Unconscionability — if the terms are so one-sided that no reasonable person would agree to them
Revocation period — if you are within the 7-day revocation window (for OWBPA-covered agreements), you can still revoke

Even if the release stands, certain claims cannot be waived. You cannot waive your right to file a charge with the EEOC, your right to unemployment insurance benefits, or claims for vested retirement benefits under ERISA.

NY WARN Act and Mass Layoff Severance Obligations

If you were terminated as part of a mass layoff or plant closing, your employer may have additional obligations under the Worker Adjustment and Retraining Notification (WARN) Act. Both federal and New York State have WARN Act provisions, and the New York version (NY WARN Act) is broader.

Under the New York WARN Act, employers with 50 or more employees must provide 90 days’ advance written notice before a mass layoff, plant closing, or relocation affecting 25 or more full-time employees. The federal WARN Act requires 60 days’ notice for employers with 100+ employees.

If your employer failed to provide proper WARN Act notice, you may be entitled to:

Back pay and benefits for each day of the violation period (up to 60 or 90 days)
Civil penalties payable to the affected community

This entitlement exists independently of any severance offer and cannot be waived without adequate consideration. If your employer’s severance offer merely compensates you for what they already owe under the WARN Act, you are not receiving anything additional — and the release may be unenforceable.

Why Employees Choose Joya Law Firm for Severance Negotiations

Joya Law Firm represents employees — never employers. That distinction matters. When you work with us, there is no conflict of interest and no ambiguity about whose side we are on.

Our approach to severance agreement review and negotiation is grounded in:

Whether your severance package is $5,000 or six figures, the legal issues are the same. Every employee deserves to understand what they are signing and what they are giving up.

Frequently Asked Questions (FAQ)

Do I have to accept a severance agreement in New York?

No. Severance agreements in New York are voluntary. Your employer cannot force you to sign, and in most cases, you are free to negotiate the terms or walk away entirely. However, rejecting an offer does not mean you will receive a better one later — which is why having a New York employment lawyer review the agreement before making a decision is critical.

How much severance pay should I receive?

There is no legal minimum for severance pay in New York. Common benchmarks range from one to four weeks of pay per year of service, but the amount depends on your role, tenure, the circumstances of your departure, and whether you have viable legal claims. Employees with potential claims for discrimination or wrongful termination often have leverage to negotiate significantly higher packages.

Can I negotiate my severance agreement without a lawyer?

You can, but employers draft these agreements with the help of experienced corporate attorneys. Negotiating without legal representation puts you at a significant disadvantage. A severance negotiation attorney understands the legal claims you may be waiving, identifies red flags, and knows how to present a counter-proposal that employers take seriously.

What happens if I sign a severance agreement and then discover I had a legal claim?

In most cases, the release you signed will bar you from pursuing that claim. This is why reviewing the agreement with a lawyer before signing is so important. There are limited exceptions — including OWBPA violations, fraud, and duress — but these are difficult to prove after the fact.

How long do I have to review a severance agreement in New York?

If you are 40 or older, the OWBPA requires your employer to give you at least 21 days to review the agreement (45 days in a group layoff), plus 7 days to revoke after signing. If you are under 40, there is no statutory minimum — but you should never let an employer pressure you into signing immediately.

Can my employer revoke the severance offer if I try to negotiate?

Legally, yes — an employer can withdraw an offer at any time before you accept it. In practice, this almost never happens. Employers offer severance to avoid litigation, and revoking the offer increases that risk. Reasonable negotiation is expected and does not typically result in a withdrawn offer.

Does a severance agreement affect my unemployment benefits?

Signing a severance agreement does not automatically disqualify you from receiving unemployment insurance in New York. However, specific terms — such as how the severance is structured and when payments begin — can affect when your benefits start. Your lawyer can help ensure the agreement is structured to protect your eligibility.

Take the Next Step

If you have been offered a severance agreement in New York, do not sign it before a lawyer reviews it. The deadlines may feel urgent, but you have more time — and more leverage — than you think.

Joya Law Firm reviews and negotiates severance agreements for employees across New York City, including Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. We will tell you what the agreement really says, what you may be giving up, and how to secure a better outcome.

Book a Consultation or call us at 415-302-9437 to discuss your severance agreement today.