Severance agreements are legal contracts that outline the terms under which an employee will leave their employer, often in exchange for compensation or other benefits. While these agreements are common in New York City, they can sometimes include provisions that are unfair, unlawful, or detrimental to the employee’s rights.
If you’ve been offered a severance agreement in New York City, it’s crucial to understand the potential legal implications before you sign anything. Severance agreements often contain provisions that could limit your rights, such as non-compete clauses, non-disparagement clauses, or waivers of your ability to pursue legal action.
Before agreeing to any terms, contact the experienced employment law attorneys at Levine & Blit. We can thoroughly review your severance agreement to ensure it protects your interests and that you’re not unknowingly signing away important rights. Schedule a free case evaluation with one of our New York City severance agreement lawyers today and safeguard your future. Call us at 646-461-6838 or reach out online.
👉Also Read: Top Reasons When Not to Sign a Severance Agreement
How Do Severance Agreements Work?
A severance agreement typically outlines key terms, such as severance pay, continuation of benefits, non-disclosure clauses, non-compete provisions, and waivers of legal claims. While employers aren’t legally required to provide severance unless specified in an employment contract, union agreement, or company policy, many do so to mitigate risks of future litigation or to ensure a smoother transition.
Key Provisions in Severance Agreements
- Waivers of Legal Claims: Most severance agreements require employees to waive their right to sue the employer for claims like wrongful termination, discrimination, or harassment.
- Non-Disclosure Agreements (NDAs): These prevent employees from sharing proprietary information or discussing the circumstances of their termination.
- Non-Compete and Non-Solicitation Clauses: These restrict an employee’s ability to work for competitors or solicit the company’s clients after leaving.
- Confidentiality Clauses: Employees may be required to keep the terms of the severance agreement confidential.
While many of these provisions are enforceable, they must comply with federal, state, and city laws. Employees have the right to negotiate or challenge terms they find unfair or unlawful.
Legal Grounds to Challenge a Severance Agreement
You may challenge a severance agreement in NYC under several circumstances, particularly if it violates legal protections or includes unlawful terms.
Coercion or Duress
If an employee was pressured, threatened, or coerced into signing the agreement, it may not be enforceable. For example, if an employer demands immediate signature without allowing time for review or consultation with an attorney, this could constitute duress.
Lack of Consideration
A severance agreement must provide some form of consideration, such as monetary compensation or benefits, in exchange for the employee’s waiver of rights. If the agreement lacks adequate consideration, it may be invalid.
Misrepresentation or Fraud
If an employer misrepresents the terms of the agreement or conceals critical information, the employee may have grounds to challenge its validity. This includes situations where the employer provides false information about the employee’s rights or the consequences of signing the agreement.
Violation of Labor Laws
Severance agreements must comply with applicable federal, state, and city laws, including:
- Title VII of the Civil Rights Act: Prevents discrimination based on race, gender, religion, or other protected categories.
- Age Discrimination in Employment Act (ADEA): Requires that employees over the age of 40 be given at least 21 days to review the agreement and 7 days to revoke it.
- New York Human Rights Law (NYHRL): Prohibits discrimination and retaliation in the workplace.
- New York City Human Rights Law (NYCHRL): Offers additional protections against workplace discrimination.
If the agreement violates these laws or attempts to waive non-waivable rights (e.g., filing a discrimination complaint with the EEOC), it may be unenforceable.
Overly Broad or Unreasonable Provisions
New York courts may refuse to enforce overly broad non-compete or non-solicitation clauses that unfairly restrict an employee’s ability to find new employment. Similarly, confidentiality clauses that suppress the reporting of illegal activities, such as harassment or discrimination, may be invalidated under whistleblower protections.
👉Also Read: Negotiating Severance Pay in NYC: Tips for Getting the Best Deal When Responding to an Offer
How to Challenge a Severance Agreement in New York?
Challenging a severance agreement against a current or former employer requires careful legal strategy and attention to procedural requirements. Here’s how employees in NYC can navigate the process:
1. Consult an Employment Attorney
An experienced New York City employment lawyer can help you understand your rights, identify problematic provisions, and determine the best course of action. They can also assist with negotiating better terms or filing a legal challenge if necessary.
2. Review the Agreement Thoroughly
Before an employee signs the severance agreement, it should be examined for any unlawful provisions, lack of consideration, violation of a governing law related to unemployment insurance, or other red flags such as clauses to release claims. Be aware of your rights under federal and state labor laws.
3. Identify Legal Violations
If the agreement violates laws such as the ADEA, NYHRL, or NYCHRL, document the specific issues and gather evidence to support your case.
4. Negotiate with the Employer
In many cases, disputes over severance agreements can be resolved through negotiation. Your attorney can negotiate with your employer to amend or remove problematic terms.
5. File a Complaint or Lawsuit
If negotiation fails, you may have the option to file a complaint with the EEOC, the New York State Division of Human Rights, or the New York City Commission on Human Rights. In some cases, you may need to pursue a lawsuit to challenge the enforceability of the agreement.
Important Considerations for Employees
- Time for Review: Federal law under the Older Workers Benefit Protection Act (OWBPA) mandates that employees aged 40 or older be given sufficient time to review the agreement (21 days) and a revocation period (7 days).
- Waiver of Future Claims: While severance agreements can waive existing claims, they cannot prevent employees from filing claims for future violations or cooperating with investigations by regulatory agencies.
- Legal Fees: Some agreements include provisions requiring employees to cover the employer’s legal fees in disputes. These clauses can be challenged as unconscionable.
- Whistleblower Protections: Severance agreements can’t lawfully prevent employees from reporting illegal activities or cooperating with government investigations.
👉Also Read: Decoding Severance Package: What Every Employee Should Know
How Our NYC Employment Attorneys Will Challenge a Severance Agreement on Your Behalf to Recover Full Compensation for You
At Levine & Blit, we understand the complexities of severance agreements and the emotional and financial stakes involved when leaving an employer. Our experienced NYC employment attorneys are dedicated to protecting your rights and maximizing your compensation. We approach severance agreement challenges with precision, determination, and a proven legal strategy designed to deliver results. Here’s how we advocate for you every step of the way:
Comprehensive Legal Consultation and Case Assessment
The first step in challenging a severance agreement is understanding your unique situation. During an initial consultation, we will:
- Listen to Your Concerns: We take the time to hear your story, review the circumstances of your termination, and understand your priorities.
- Analyze the Agreement: Our attorneys will carefully dissect every clause in the severance agreement, identifying provisions that may be unfair, unlawful, or unenforceable.
- Explain Your Rights: We ensure you fully understand your rights under federal, state, and local laws, including protections under the Age Discrimination in Employment Act (ADEA), New York Human Rights Law (NYHRL), and New York City Human Rights Law (NYCHRL).
- Discuss Your Options: We will provide you with clear, actionable advice on whether to challenge the agreement, negotiate better terms, or pursue legal action.
Diligent Review of the Severance Agreement
Every severance agreement is unique, and our attorneys at Levine & Blit scrutinize every detail to protect your interests. Our review includes:
- Waivers of Legal Claims: We assess whether the waiver of claims is overly broad or unlawfully attempts to limit your rights, such as your ability to file discrimination or retaliation complaints with government agencies.
- Non-Compete and Non-Solicitation Clauses: We evaluate whether these restrictions are overly restrictive and could unreasonably hinder your ability to secure future employment.
- Confidentiality and Non-Disclosure Clauses: We ensure these provisions comply with whistleblower protections and don’t suppress your right to report illegal activities or unethical conduct.
- Adequate Consideration: We confirm that the severance package provides fair compensation in exchange for the rights you are giving up, ensuring compliance with applicable laws.
If we identify any unlawful, ambiguous, or exploitative terms, we will prepare a detailed plan to challenge or renegotiate the agreement.
Identifying Legal Violations and Building a Strong Case
Our attorneys are skilled at uncovering legal violations within severance agreements, including:
- Discrimination or Retaliation: If your severance agreement is tied to discriminatory or retaliatory practices, we will gather evidence to expose and address these violations.
- Failure to Meet Legal Requirements: We check for compliance with laws such as the ADEA, which mandates a 21-day review period and a 7-day revocation period for employees aged 40 or older. Agreements that fail to meet these requirements may be invalidated.
- Coercion or Duress: If your employer pressured or misled you into signing the agreement, we can argue that it was not signed voluntarily, making it unenforceable.
We leave no stone unturned in identifying legal violations, ensuring that your case is supported by compelling evidence and sound legal arguments.
Skilled Negotiation with Your Employer
In many cases, we can resolve disputes related to job termination, discrimination claims, and severance package issues through negotiation, allowing you to avoid the time and stress of litigation. Our approach includes:
- Demanding Revisions: We negotiate with your employer to remove or amend problematic provisions, such as overly broad non-compete clauses or confidentiality agreements that violate your rights.
- Securing Better Compensation: We fight to maximize your severance pay, continuation of benefits, or other forms of consideration.
- Protecting Your Future: Our goal is to ensure that your severance agreement allows you to move forward without unnecessary restrictions or lingering disputes.
Employers often prefer to settle disputes quickly, and our attorneys leverage their negotiation skills to secure favorable outcomes for our clients.
Aggressive Legal Action When Necessary
If negotiation fails or the employer refuses to address unlawful terms, we are fully prepared to take legal action. This may include:
- Filing a Complaint with Government Agencies: We can file complaints with the Equal Employment Opportunity Commission (EEOC), the New York State Division of Human Rights, or the New York City Commission on Human Rights if your agreement violates anti-discrimination laws.
- Challenging the Agreement in Court: Our attorneys have extensive litigation experience and will not hesitate to file a lawsuit to challenge the enforceability of the agreement or to seek damages for unlawful conduct.
- Seeking Damages for Employer Misconduct: If your employer acted in bad faith, engaged in coercion, or discriminated against you, we will pursue every legal avenue to recover compensation for lost wages, emotional distress, and other damages.
Our New York employment lawyers are relentless advocates for our clients and will fight for maximum severance benefits on your behalf, whether through settlement or litigation.
Ongoing Support and Advocacy
At Levine & Blit, we prioritize our clients’ well-being and long-term success. Beyond challenging your separation agreement, we may provide:
- Career Transition Guidance: We ensure that the terms of your severance agreement do not hinder your ability to secure new employment or explore other opportunities as a former employee.
- Continued Legal Support: If new legal issues arise related to your employment, severance, or termination date, we are here to provide guidance and representation.
👉Also Read: New York Severance Agreement Essentials for Executives: What to Know Before Signing
Get Strong Legal Representation from Our NYC Severance Agreement Lawyer
At Levine & Blit, we bring decades of experience, a deep understanding of employment law, and a steadfast commitment to every case. Our track record includes successfully challenging and renegotiating severance agreements for employees across New York. We combine proven negotiation skills with aggressive trial readiness to ensure you receive the fair treatment and compensation you deserve.
If you are facing an unfair or unlawful severance agreement, contact our experienced NYC employment attorneys today. We will fight tooth and nail to protect your rights and achieve the best possible outcome for you. Call Levine & Blit now to schedule a free case evaluation and take the first step toward justice and compensation.