Losing a job can be stressful, and when your employer presents you with a severance agreement, you may feel pressured to sign it quickly. Pertaining to this, signing too soon can be a costly mistake—you might be waiving important legal rights, accepting an unfair package, or missing out on better terms. At Levine & Blit, our NYC severance agreement lawyers help employees review, negotiate, and challenge unfair severance packages.
👉Also Read: New York Severance Agreement Requirements: Essential Guide for Employees
What is a Severance Agreement?
A severance agreement is a legally binding contract between an employer and an employee, typically offered when an employee is terminated, laid off, or resigns under certain conditions.
It usually includes:
- A severance payment (lump sum payment or continued salary)
- Extended health insurance benefits (COBRA coverage)
- Non-disclosure and non-disparagement clauses
- Non-compete and non-solicitation restrictions
- A waiver of legal claims against the employer
When You Should Hold Off on Signing a Severance Package
Before signing, take the time to evaluate whether the separation agreement fulfills the New York severance agreement requirements and truly serves your best interests. Here are key red flags and situations where you should pause and consult a New York severance attorney before signing:
1. You Were Wrongfully Terminated or Discriminated Against
If you were fired due to discrimination, retaliation, or unlawful reasons, you may have a strong legal claim against your employer under New York employment law. Employers often offer severance to avoid lawsuits, so signing an agreement without legal advice could mean giving up a right to sue for significantly higher compensation.
Signs of wrongful termination:
- Fired after reporting harassment, discrimination, or illegal activities
- Let go while on medical leave, maternity leave, or after requesting accommodations
- Terminated due to age, race, gender, disability, religion, or other protected factors
Legal Tip: If you suspect wrongful termination, consult our attorneys before signing. You might be entitled to more than what’s in your severance offer.
2. The Severance Pay Is Too Low
Severance agreements are negotiable, and employers rarely offer their best deal upfront. Many companies use a standard formula, but this doesn’t mean it is fair compensation for your circumstances.
Factors that affect severance pay:
- Your years of service and seniority
- Whether you had a high-level role or specialized skills
- The circumstances of your termination
- Whether you were offered severance in exchange for waiving rights
Legal Tip: Our severance lawyers will review your employer’s financials and industry norms to demand a better employee benefits package—negotiating a significantly higher payout.
3. The Agreement Contains Unfair Non-Compete or Non-Solicitation Clauses
Many severance agreements include restrictive covenants that limit your ability to work for competitors or start your own business. These restrictions can hurt your career and earning potential.
Risks of restrictive clauses:
- A non-compete clause may bar you from working in your industry for months or years
- A non-solicitation clause may prevent you from contacting former clients or colleagues
- Some agreements prohibit working for a competitor, even in a different role
Legal Tip: New York courts often scrutinize and limit non-compete clauses. Our attorneys can challenge overbroad restrictions or negotiate better terms to protect your career.
4. You Are Being Asked to Waive Important Legal Rights
Many severance agreements require employees to waive their right to sue for:
- Discrimination or harassment claims
- Retaliation or whistleblower claims
- Unpaid wages or overtime violations
Warning: If you sign, you may lose the ability to pursue legal action even if your employer violated state or federal laws.
Legal Tip: Our lawyers will assess whether signing the waiver is in your best interest—and if not, we’ll negotiate changes to preserve your legal rights.
5. The Employer Is Pressuring You to Sign Immediately
If your employer is rushing you to sign, proceed with caution. Employers may:
- Imply that you will lose the offer if you delay
- Downplay restrictive clauses or waivers
- Avoid discussing alternative compensation options
- Pressurize you to sign for the sake of employment relationship
Legal Tip: New York employees have at least 21 days to review severance agreements under federal law (45 days in group layoffs). Do not sign under pressure—consult our severance attorneys first.
👉Also Read: Should You Accept a Severance Package or Stay? A Guide for New York Employees
6. You Have Unused Vacation Pay, Bonuses, or Stock Options
Your severance should account for all unpaid benefits, including:
- Unused PTO and vacation days
- Unpaid bonuses or commissions
- Stock options or retirement benefits
Employers may sometimes ignore these benefits unless you demand them.
Legal Tip: Our attorneys will audit your full compensation package and ensure you get every dollar owed to you, including any unemployment benefits.
7. Your Agreement Contains a Non-Disparagement or Gag Clause
Many severance agreements prohibit you from speaking negatively about your employer—even if they mistreated you.
- This could limit your ability to report misconduct against the former employer
- You may be barred from discussing your case with future employers
Legal Tip: We will fight to remove overly restrictive gag clauses so you can safely discuss your experience if necessary.
👉Also Read: Can You Challenge a Severance Agreement in NYC? Your Rights and Options
How Our New York Severance Agreement Attorneys Can Help
At Levine & Blit, our experienced New York severance agreement attorneys provide strategic legal counsel to employees facing job termination, layoffs, or voluntary separations. A severance package is more than just a payout—it can affect your future employment, financial stability, and legal rights. That’s why it is critical to have a knowledgeable attorney review your severance agreement before you sign.
Here’s how Levine & Blit can help you navigate all matters related to your severance package, protect your rights, and maximize your financial compensation.
1. Comprehensive Review of Your Severance Agreement
Most severance agreements are drafted by employers to protect their own interests, not yours. Our attorneys will carefully analyze every clause in your agreement to ensure you are not signing away valuable rights or accepting an unfair deal.
- Severance Pay: We evaluate whether your severance payment is fair based on your tenure, role, and industry standards.
- Waivers & Releases: In many cases, the employment agreement may require employees to waive their right to sue for wrongful termination, discrimination, or unpaid wages. We assess whether these waivers are appropriate or negotiable.
- Non-Compete & Non-Solicitation Clauses: If your agreement restricts your ability to work in your industry, we determine if the clause is enforceable or needs modification.
- Benefits & Bonuses: We ensure your agreement accounts for all compensation owed to you, including unused PTO, commissions, stock options, health insurance coverage, and retirement benefits.
- Confidentiality & Non-Disparagement Clauses: We evaluate whether your employer’s gag orders are too restrictive and negotiate fairer terms.
Legal Tip: Employers sometimes try to rush employees into signing severance agreements quickly before they fully understand their rights. Do not sign anything without consulting our attorneys first.
2. Aggressive Severance Negotiation to Maximize Your Compensation
Your initial severance offer is rarely the best deal your employer is willing to offer. Our attorneys have extensive experience in negotiating severance agreements and can secure better compensation, extended benefits, or more favorable terms.
- Increasing Severance Pay: We push employers to provide severance pay based on your tenure, industry norms, and employer financials.
- Extending Health Benefits: If your employer-provided health insurance is set to expire, we negotiate extended COBRA coverage or alternative benefits.
- Modifying Restrictive Clauses: If the agreement contains overly broad non-compete or non-disparagement clauses, we negotiate more reasonable terms to protect your future career.
- Preserving Legal Claims: If you suspect wrongful termination, we negotiate terms that allow terminated employees to pursue additional legal action.
Legal Tip: Many employees accept low severance pay without realizing they have leverage. Our attorneys know how to apply pressure and negotiate aggressively to maximize your payout.
3. Protecting You from Unfair Non-Compete and Non-Solicitation Agreements
Many severance agreements contain restrictive covenants that can make it difficult or even impossible to work in your industry for months or years after leaving your job.
- Non-Compete Clauses: Employers may bar you from working for competitors, even in a different role. We challenge overly broad restrictions to ensure you can continue working in your field.
- Non-Solicitation Clauses: Some agreements prevent you from reaching out to former clients, vendors, or colleagues—even if they want to work with you. We limit or remove unfair restrictions.
- Enforceability in New York: Not all non-compete agreements are enforceable under New York law. We assess whether the restrictions in your severance agreement are legally valid and fight to protect your career prospects.
Legal Tip: New York courts usually reject overly broad non-compete clauses. If your employer’s restrictions are too severe, we will fight to have them removed or modified.
4. Identifying Wrongful Termination, Discrimination, or Retaliation Claims
If your severance package is being used to cover up illegal termination, you may be entitled to much more than what’s being offered. Our employment attorneys will investigate whether you have grounds for legal action based on:
- Wrongful Termination: If you were fired due to discrimination, retaliation, or exercising your legal rights, we may advise against signing your agreement and instead pursue legal action.
- Workplace Discrimination: If you were terminated due to age, race, gender, pregnancy, disability, religion, or sexual orientation, signing a severance agreement could waive your right to sue.
- Retaliation: If you were fired for reporting harassment, unsafe work conditions, or unethical practices, we may seek additional damages beyond severance pay.
Legal Tip: If you were wrongfully terminated, you may be entitled to significantly higher compensation than what your severance package offers. Consult our attorneys before signing anything.
5. Guiding You Through the Severance Negotiation & Legal Process
At Levine & Blit, we ensure that you fully understand every aspect of your severance agreement before making any decisions. Here’s how we guide you through the process:
- Step 1: Free Evaluation – We review your severance agreement and assess your legal options.
- Step 2: Agreement Analysis – We identify unfair terms, missing benefits, and negotiation opportunities.
- Step 3: Negotiation Strategy – We discuss your priorities (higher severance, extended benefits, removal of restrictions) and negotiate with your employer.
- Step 4: Legal Protection – If your employer refuses to negotiate or has violated labor laws, we explore legal action to recover additional compensation.
- Step 5: Finalizing Your Agreement – Once a fair severance package is secured, we ensure all terms are legally sound before you sign.
Legal Tip: Under federal law, you have at least 21 days to review a severance agreement (45 days in mass layoffs). Don’t feel pressured to sign immediately.
👉Also Read: Severance Agreements: Should I Have a Lawyer Review My Severance Agreement?
Why Choose Our NYC Severance Agreement Lawyer?
- Decades of Experience – At Levine & Blit, our attorneys have successfully handled thousands of severance agreement cases.
- Proven Track Record – We have helped employees secure higher severance pay, extended benefits, and stronger legal protections.
- Aggressive Legal Advocacy – We challenge unfair employer practices and fight for your best interests.
- Personalized Legal Strategy – Every case is unique. We develop tailored legal strategies based on your career goals and legal rights.
Before signing a severance agreement, let our experienced New York severance agreement attorneys review your package and fight for a better deal. You deserve fair compensation and protection for your future career. Call us at 646-461-6838 for a free case evaluation or contact us online.