NYC Severance Agreement & Executive Compensation Attorneys

Severance agreements vary widely, but most include:

• Severance pay calculation (often weeks per year of service)
• Payment structure (lump sum vs. salary continuation)
• COBRA health insurance provisions
• Release of legal claims against the employer
• Non-compete and non-solicitation clauses
• Non-disparagement provisions
• Confidentiality clauses
• Cooperation clauses
• Return of company property requirements
• Reference terms or neutral reference agreements
• Clawback provisions tied to misconduct allegations

What appears “standard” may have serious legal and financial consequences. Signing a release typically waives the right to sue for discrimination, retaliation, wage claims, or other employment violations.

Employees age 40 and over are protected under the Older Workers Benefit Protection Act (OWBPA). For a waiver of age discrimination claims to be valid, strict requirements must be met:

• 21-day consideration period (individual terminations)
• 45-day consideration period (group reductions in force)
• 7-day revocation period after signing
• Clear written language
• Disclosure of job titles and ages of employees selected and not selected in group layoffs

Failure to comply with these requirements may invalidate the waiver.

If you are over 40, legal review before signing is critical.

Many employees do not realize severance is often negotiable.

Key Leverage Points

• Pending or potential discrimination claims
• Strong performance history
• Employer’s desire to avoid litigation
• Public relations concerns
• Equity acceleration rights
• Restrictive covenant enforceability

Negotiation Strategies

• Increasing severance pay or extending salary continuation
• Securing bonus or commission payouts
• Accelerating vesting of stock options or equity
• Narrowing non-compete and non-solicitation clauses
• Adding a neutral reference provision
• Extending health benefits
• Structuring a consulting transition
• Clarifying language around future employment

Timing is critical. Employers frequently impose short deadlines to create pressure. We routinely review and negotiate agreements under expedited timelines, including 24-hour turnaround when necessary.

Certain provisions should trigger immediate legal review:

• Overly broad release language
• Hidden clawback provisions
• Exclusion of earned bonuses or commissions
• Non-competes without additional compensation
• Confidentiality clauses with financial penalties
• No neutral reference language
• Ambiguous equity forfeiture terms

Once signed, these agreements are difficult to undo.

We represent executives and senior professionals in disputes involving:

• Unpaid severance
• Earned but unpaid bonuses or commissions
• Stock options and restricted equity
• Carried interest disputes
• Forfeiture provisions
• Allegations of misconduct affecting payout
• Enforcement or defense of restrictive covenants

Our litigation team resolves matters through negotiation, arbitration, and state or federal court when necessary.

We advise businesses on:

• Drafting compliant severance agreements
• Structuring enforceable waivers and releases
• Managing executive exits
• Conducting pre-termination legal audits
• Ensuring compliance with federal and New York labor laws
• Protecting trade secrets and client relationships

Well-drafted agreements reduce risk while protecting reputation and continuity.

Generally, no. New York law does not require employers to provide severance unless:

• An employment contract guarantees it
• A company policy promises it
• A collective bargaining agreement applies

However, employers frequently offer severance in exchange for a release of claims.

How much severance should I ask for?

It depends on position, tenure, compensation structure, leverage, and potential legal claims.

Can I negotiate a severance agreement after signing?

Usually no. Once signed and the revocation period expires, terms are binding.

What rights am I waiving in a severance agreement?

Typically discrimination, retaliation, wage claims, and other employment-related legal claims.

Can a non-compete be enforced in New York?

It depends on reasonableness, scope, duration, and legitimate business interests.

Do I need a lawyer to review a severance agreement?

Strongly recommended — especially if you are over 40, have equity, or are subject to restrictive covenants.

How long do I have to sign a severance agreement?

Deadlines vary. Some agreements provide only a few days. Employees over 40 must receive statutory review periods under federal law.

• Before signing a release
• If you are over 40
• If you suspect discrimination or retaliation
• If bonuses or commissions are unpaid
• If you hold stock options, equity, or carried interest
• If a non-compete restricts future employment
• If the deadline to sign feels rushed

The earlier counsel becomes involved, the stronger your negotiation position.