What A Severance Agreement Really Says
You are being asked to sell something. Understanding what makes the price negotiable.
Severance is not automatic in New York, which has at-will employment. Where it is offered, it is a transaction: the employer pays, and in exchange the employee gives up the right to sue and accepts conditions on future conduct.
Understanding it as a purchase rather than a courtesy is what makes negotiation possible.
The release
The core of the agreement is a general release of claims. Read what it covers and whether it is mutual. A one-sided release leaves the employer free to bring claims against you while you have given up yours.
Some rights cannot be waived. Employees retain the ability to file charges with, and participate in investigations by, government agencies, and agreements restricting that are problematic.
Time to consider
Where a release covers age discrimination claims, federal law requires a minimum consideration period and a revocation period after signing. Employers who present an agreement demanding a signature within hours are, at best, misinformed.
Whatever the legal minimum, asking for time to take advice is normal and rarely refused.
Non-disparagement and confidentiality
These clauses are standard and their scope varies enormously. Note whether non-disparagement is mutual — often it is not until asked. Note also that New York law limits the use of non-disclosure provisions in settlements of discrimination and harassment claims, reflecting a policy that such clauses should not be imposed on the complainant.
What else is on the table
Beyond the payment: continuation of health cover, treatment of unvested equity, the wording of the departure announcement, an agreed reference, and the return date for company property. Equity treatment is frequently worth more than additional weeks of salary and is frequently not raised.
Get advice before signing
An employment lawyer's review of a severance agreement is a small, fixed cost against an irrevocable decision. If the amount offered is meaningful, the review is worth it.
This is general information, not legal advice. Speak to a qualified New York attorney before acting on any of it.