If you’ve recently been presented with a severance package, you’re likely feeling a mix of emotions: relief, uncertainty, maybe even anxiety about what comes next. Whether you’re a tech employee facing a layoff in New York or a finance professional navigating a Wall Street severance package, understanding how to negotiate severance package terms can significantly impact your financial and professional future.
At Gordon & Gordon, one of the leading NYC law firms, our team of experienced employment lawyers specializes in severance package negotiation and offers expert guidance to help you get what you deserve. This post will walk you through what you should know about severance agreements and why hiring an attorney or a severance lawyer can be a game-changer.
What Is a Severance Package?
A severance package is a set of benefits an employer offers when an employee is laid off or their employment ends unexpectedly. It often includes severance pay, continuation of health benefits, and sometimes outplacement services. In executive or C-suite separation agreements, the terms can be more complex, including stock options or bonuses.
In New York, employers are generally not legally required to offer severance, unless stipulated by contract or company policy. However, a severance agreement often includes a release of claims, meaning you agree not to sue the company in exchange for the severance benefits.
Why Negotiating Your Severance Package Matters
You might wonder, “How much severance pay am I entitled to in NY?” The truth is, there’s no one-size-fits-all answer. Severance pay often depends on factors like your length of employment, your position (whether you’re negotiating director-level severance pay or a VP severance negotiation), and the company’s financial situation.
Negotiating your severance package can secure additional months of pay, extended health coverage, or better terms in your non-compete agreement. These elements are crucial if you’re planning your next career move or concerned about financial stability during your transition.
Key Elements to Review in a Severance Agreement
When you receive a severance offer, it’s essential to perform a thorough severance package review. Key components to examine include:
- Severance pay: Understand how it’s calculated and whether it includes bonuses or unused vacation pay.
- Health benefits: Is there COBRA continuation, or will your employer extend benefits longer than usual?
- Release of claims: What rights are you waiving by signing? This often means you cannot pursue claims related to wrongful termination or other disputes.
- Non-compete clauses: Can you negotiate restrictions that might limit your future job prospects?
- Separation agreement terms: Be aware of confidentiality or non-disparagement agreements.
For executives, these contracts may have additional clauses related to stock options or retirement benefits.
Practical Tips for Negotiating Your Severance Package in New York
Knowing how to negotiate a better severance package in New York starts with understanding your leverage. Here are some expert tips:
- Take your time and don’t rush to sign. Employers might pressure you to accept quickly, but you have the right to review the offer carefully.
- Consult a lawyer. You may ask, “Should I have a lawyer review my severance agreement?” The answer is yes. A separation agreement lawyer or employee rights lawyer in NYC can help uncover unfavorable terms and suggest improvements.
- Know your rights under the NY WARN Act and layoff laws. If your employer is conducting mass layoffs, you might be entitled to additional compensation or notice.
- Negotiate beyond severance pay. Consider asking for extended health benefits, outplacement services, or modifications to any non-compete agreement.
- Be prepared to leverage your performance and role. If you are negotiating tech employee severance or navigating a finance professional layoff, your specialized skills and market demand can give you more negotiating power.
Common Mistakes to Avoid in Severance Negotiations
Even seasoned professionals can slip up when negotiating severance. Avoid these pitfalls:
- Signing without fully understanding the release of claims and other legal jargon.
- Overlooking tax implications of severance pay.
- Failing to get negotiated terms in writing.
- Ignoring clauses that limit your future employment options.
- Assuming severance offers are non-negotiable.
Remember, even in media industry layoff cases or Wall Street severance package situations, negotiation is often possible and encouraged.
When to Seek Legal Assistance
If you are unsure about the terms or suspect your termination might be wrongful, contacting a severance lawyer or one of the trusted employment lawyers at Gordon & Gordon is crucial. Cases involving wrongful termination or disputes over the NY WARN Act can be complex.
Hiring an employment attorney early can help ensure you get a fair deal and protect your layoff rights in NY. At Gordon & Gordon, one of the premier city law firms, we offer a free consultation employment lawyer to review your severance package and advise you on your next steps.
What to Do When You Get a Severance Offer
If you’ve just received a severance package, here’s what to do:
- Don’t sign immediately. Ask for time to review.
- Contact a law firm with expertise in severance and employment law.
- Request a severance package review to understand if the offer is reasonable.
- If you want to hire an employment attorney in NY, choose one experienced in your industry, whether that’s tech, finance, media, or corporate executives.
- Discuss potential negotiation strategies to improve your package.
Why Choose Gordon & Gordon?
Negotiating severance can be overwhelming, especially when dealing with complex agreements like an executive severance package or a C-suite separation agreement. At Gordon & Gordon, our team of employee rights lawyers understands the nuances of New York employment law and has a proven track record helping clients secure the best possible outcomes.
Whether you need help with severance agreement legal advice or want to speak to a severance lawyer who can provide personalized guidance, we’re here to help you through every step.
Ready to Start Negotiating?
A severance package is more than just a payout; it’s a critical bridge to your next career opportunity and financial security. Knowing how to negotiate a better severance package in New York can make all the difference. Don’t leave money or rights on the table by signing without proper review.
If you want to find a severance lawyer in NYC or need help to get your severance package reviewed, contact a severance negotiation attorney at Gordon & Gordon today. Our expert team offers a free consultation service to help you understand your options and negotiate with confidence.