Severance Negotiation and Review Lawyers in New York
Protecting Your Rights as an Employee in New York
Employees have important rights when it comes to their work and wages. To ensure that fair policies govern employment and the workplace, many states have enacted important employment laws. Furthermore, employers have the right to provide employees benefits to maintain a competitive job market. However, the competitiveness of the job market is compromised when benefits such as severance pay are treated as a means of oppressing employees.
In New York, severance pay is a voluntary employee benefit that some companies provide to employees based on the length of their time at the business. This creates an incentive for those in the job market to work for a certain business. An employee is typically entitled to severance pay when their employment is terminated against their will.
The terms of severance benefits vary from employer to employer. However, severance benefits can be used to stifle the rights of employees in some situations. For example, a person can unwittingly sign a severance agreement asking the employee to relinquish some of their rights.
Because severance can be used as a tool against employees, you should consult an experienced employment lawyer in New York to determine the full extent of your rights under a proposed severance agreement. At Nisar Law Group, P.C., our legal team has years of experience dealing with issues surrounding severance pay. We can negotiate and review a proposed severance agreement to make sure your legal rights are not threatened.
For more information call Nisar Law Group, P.C. at (212) 600-9534.
Comprehensive Legal Services for Severance Agreements
Under New York law, an employer is not required to provide terminated employees with severance benefits. However, Labor Law Section 198-c recognizes the right to severance pay in situations where the employer agrees to provide such benefits to employees.
- Provisions purporting to waive discrimination or wage claims
- Implicit severance rights based on the regular practices and policies of your employer
- Severance claims subject to the federal Employee Retirement Income Security Act (ERISA)
- Unpaid severance
- Provisions attaching unfair conditions to severance benefits
At Nisar Law Group, P.C., you can count on our legal team to deliver quality legal advice and advocacy when it comes to employment law matters in New York, such as severance benefits agreements. Our skilled attorneys have the knowledge and experience to effectively negotiate on your behalf to ensure you get a severance deal that you deserve. Furthermore, we can review the provisions of a proposed severance agreement to make sure your rights are not being infringed.
Moreover, if you worked as an executive at your company, we can advise you about your rights to severance pay based on the compensation you received as an executive.
Contact Nisar Law Group, P.C. for Quality Legal Advice
Have you been terminated from your job against your wishes? If so, you should seek professional legal advice from an experienced New York employment lawyer. At Nisar Law Group, P.C., our legal team has dedicated years of their practice toward resolving legal disputes centered on New York employment laws. You can rely on a skilled group of attorneys to do whatever they can to advance your legal rights and interests when it comes to issues arising from New York employment law. Our firm takes pride in delivering personalized legal representation that takes into account the unique circumstances relevant to your case.
For an initial consultation exploring your rights, call us at (212) 600-9534 or contact our office online today.
Why We're the Right Choice
- Seasoned Litigators Who Have Handled Numerous Jury & Bench Trials
- Providing Representation with Clarity, Honesty & Integrity
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Frequently Asked Questions About: Severance Negotiation
Absolutely. Most initial severance offers are starting points, not final offers. Employers often expect negotiation and build flexibility into their proposals. Even if you think the offer seems fair, there are usually additional benefits you can request beyond the basic severance amount—like extended health insurance, outplacement services, or neutral reference agreements. Companies would rather negotiate reasonable improvements than face potential legal challenges or negative publicity.
The key is approaching negotiations professionally and strategically. Consider your leverage, which might include your length of service, specialized knowledge, potential legal claims, or the circumstances of your departure. Remember, the worst thing they can say is no, but many employers will agree to reasonable requests to ensure a smooth transition. Having an employment attorney review the offer and guide your negotiation strategy can significantly improve your final package while protecting your rights.
The most common rule of thumb is one to two weeks of pay per year of service, though this varies significantly by industry, position level, and company size. Executive and senior-level employees often receive more generous packages—sometimes one month per year of service or even more. However, there’s no legal requirement for most private employers to provide severance pay, so these are general guidelines rather than guarantees.
Your actual severance should reflect multiple factors beyond just tenure. Consider your salary level, the difficulty of replacing your skills, current market conditions in your field, and the reason for your departure. Companies may offer more generous packages to avoid potential discrimination claims, prevent negative reviews on employer sites, or retain institutional knowledge during transitions. Don’t automatically accept a package just because it meets the “standard” formula—your specific situation might warrant significantly more.
Start by expressing appreciation for the offer while indicating you’d like to discuss the terms. You might say something like: “Thank you for this severance proposal. I appreciate the company’s recognition of my contributions. I’d like to discuss a few adjustments that would help ensure a smooth transition for both of us.” This sets a collaborative tone rather than an adversarial one.
Focus your requests on specific, reasonable improvements rather than general demands for “more money.” For example: “Given my five years of service and the relationships I’ve built with key clients, I’d like to request an additional four weeks of severance pay and extending my health benefits for six months rather than three.” Always frame your requests in terms of mutual benefit and be prepared to explain why your proposals are reasonable based on your contributions, industry standards, or the company’s own policies for similar situations.
A reasonable severance package should provide adequate financial support while you search for new employment, typically covering 3-6 months of expenses for most employees. For senior-level positions or long-term employees, 6-12 months or more may be appropriate. Beyond the monetary amount, reasonable packages often include continued health insurance, outplacement services, accelerated vesting of retirement benefits, and positive reference agreements.
The “reasonableness” of your package depends heavily on your specific circumstances. Factors like your age, industry, geographic location, specialized skills, and current job market all matter. If you’re over 40, you should receive additional consideration time under federal law. If your termination involves potential legal issues—like discrimination, harassment, or violation of company policies—the package should reflect that additional risk to the employer. Remember, what’s reasonable for a recent hire differs greatly from what’s appropriate for a 15-year veteran or someone with unique expertise.
The “over 40 clause” refers to special protections under the Older Workers Benefit Protection Act (OWBPA), which requires employers to provide additional safeguards when employees over 40 sign severance agreements that waive age discrimination claims. You must receive 21 days to consider the agreement (45 days if it’s part of a group layoff), clear information about what you’re waiving, and a 7-day period after signing to revoke your acceptance.
These protections exist because older workers are particularly vulnerable to age discrimination and need more time to evaluate whether they’re giving up valuable legal rights. The agreement must specifically reference the Age Discrimination in Employment Act (ADEA) and advise you to consult with an attorney. If your employer doesn’t comply with these requirements exactly, the waiver may be invalid, preserving your right to pursue age discrimination claims even after accepting severance. Don’t rush through this process—use the full consideration period to have an employment attorney review both the severance terms and any potential age discrimination issues.
Start by researching industry standards for your position level and years of service, but remember that “fair” depends on your unique situation. Calculate your basic needs: how long will it realistically take to find comparable employment in your field and location? Consider factors like your age, specialized skills, current job market conditions, and family financial obligations. A fair package should bridge the gap between jobs without causing undue financial stress.
Beyond the monetary calculation, evaluate the total value of all components. Extended health insurance might be worth thousands of dollars per month. Outplacement services, positive references, non-disparagement agreements, and early vesting of retirement benefits all have real value. Also consider whether you have potential legal claims against your employer—if so, a fair package should reflect the risk the company is asking you to waive. The best way to determine fairness is to have an employment attorney review your situation, assess any potential claims, and benchmark the offer against both industry standards and your specific leverage points.
While you can negotiate severance without a lawyer, having legal representation significantly improves your chances of success and protects you from signing away valuable rights unknowingly. Employment attorneys understand which terms are negotiable, how to value different components of severance packages, and whether you have potential legal claims that increase your leverage. They also know how to communicate with employers professionally to avoid damaging relationships while maximizing your package.
The risks of going alone include accepting inadequate compensation, signing overly broad non-compete clauses, or waiving legal rights without understanding their value. Many employment attorneys offer initial consultations to assess your situation and explain your options. If you decide to negotiate yourself, at minimum have an attorney review the final agreement before signing—especially if you’re over 40 or suspect any discrimination. Remember, the company likely has legal counsel involved in drafting these agreements, so having your own representation levels the playing field and ensures your interests are protected.
Yes, severance pay is generally taxable as ordinary income, just like your regular salary. Your employer will typically withhold federal and state income taxes, Social Security, and Medicare taxes from severance payments. However, the tax treatment can vary depending on how the severance is structured and paid out. Lump sum payments might push you into a higher tax bracket for that year, while payments spread over time might result in lower overall tax liability.
There are some strategic ways to minimize the tax impact of severance. For example, if you have control over the timing, receiving severance payments in January rather than December might spread the tax burden across two tax years. Contributing to retirement accounts, timing other deductions, or negotiating for the employer to pay COBRA premiums (which isn’t taxable to you) can also help. Some severance components, like outplacement services, may not be taxable. It’s worth consulting with both an employment attorney and a tax professional to structure your severance in the most tax-efficient way possible while ensuring you’re getting fair compensation.
A typical severance payment ranges from two weeks to six months of salary, depending on your position level, years of service, and company policies. For hourly or lower-level employees, the payment might be relatively modest—perhaps 2-4 weeks of pay. Mid-level professionals often receive 1-2 weeks per year of service, while executives and senior employees may receive significantly more generous packages, sometimes equivalent to 6-18 months of compensation or more.
The actual check amount depends on whether you receive a lump sum or periodic payments. Some companies prefer lump sum payments to close the relationship cleanly, while others spread payments over time (which may affect unemployment benefits eligibility). Beyond the base severance amount, your “check” might include payment for unused vacation time, prorated bonuses, or accelerated vesting of stock options. Remember that the gross amount will be reduced by tax withholdings, so plan accordingly. If you’re negotiating, consider requesting that the company cover the employer portion of health insurance premiums separately, as this provides value without increasing your taxable income.
Start by thoroughly understanding what you’re being offered and what you might be entitled to under company policy or employment contracts. Don’t just focus on the cash amount—consider the total value of health insurance continuation, outplacement services, positive references, and other benefits. Research what others in similar positions at your company or in your industry have received to establish reasonable benchmarks for your negotiation.
Identify your strongest negotiation points: long tenure, specialized knowledge, strong performance history, potential legal claims, or difficult market conditions in your field. Present your requests professionally, focusing on specific improvements rather than general demands. Consider asking for non-monetary benefits if the company has budget constraints—things like extended health coverage, outplacement services, or flexible payment timing can be valuable without significantly impacting the employer’s bottom line. Most importantly, don’t sign anything immediately. Take time to review the offer, consult with an employment attorney, and negotiate improvements. The initial offer is rarely the final offer, and most employers expect some level of negotiation in severance discussions.