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Severance and Separation Agreement Negotiation
Maximizing Your Exit Package in New York
When facing employment termination, the severance package you negotiate can significantly impact your financial stability and future career prospects. At Dolce Law PLLC, we help employees throughout New York City and the surrounding areas secure fair, comprehensive severance agreements that protect their interests and provide appropriate compensation for their service.
What Is a Severance or Separation Agreement?
A severance agreement (also called a separation agreement) is a legally binding contract between an employer and departing employee that typically includes:
- Financial compensation beyond final wages
- Terms regarding benefits continuation
- Agreements about references and employment verification
- Confidentiality and non-disparagement provisions
- Releases of legal claims
- Post-employment restrictions such as non-compete clauses
While employers often present these agreements as standard or non-negotiable, most severance terms can be improved with skilled legal representation.
When You Need a Severance Agreement Attorney
You should consider legal representation for severance negotiation if:
- You’ve been offered a severance package and want to ensure it’s fair
- You’re facing termination and want to negotiate a severance package
- You’re considering a voluntary departure and seeking exit terms
- You’ve been presented with a separation agreement containing complex legal terms
- You believe your termination may be unlawful and want to leverage this in negotiations
- You’re a senior executive with substantial compensation and benefits at stake
- You’ve been asked to sign new or expanded non-compete provisions
Key Components of Severance Agreements We Negotiate
Financial Compensation
- Severance pay amount: Increasing the base severance offering
- Payment structure: Lump sum vs. continuation payments
- Tax treatment: Structuring payments to minimize tax impact
- Bonus treatment: Ensuring fair treatment of earned or prorated bonuses
- Commission payments: Securing payment for deals in progress or recently closed
- Equity compensation: Addressing stock options, RSUs, or other equity interests
Benefits Continuation
- Health insurance coverage: COBRA subsidies or direct continuation
- Retirement benefits: 401(k) matching, pension considerations
- Deferred compensation: Securing payment of deferred compensation plans
- Insurance benefits: Life, disability, and other coverage extensions
- Unused paid time off: Ensuring payment for accrued vacation and PTO
Career Protection
- References: Securing positive or neutral references
- Non-disparagement: Ensuring mutual provisions that protect your reputation
- Reason for separation: Negotiating how your departure will be characterized
- Outplacement services: Obtaining career transition assistance
- Resume gap explanation: Creating legitimate consulting arrangements
Legal Protections
- Release limitations: Narrowing overly broad releases of claims
- Carve-outs: Preserving certain rights despite the general release
- Non-compete restrictions: Limiting or eliminating competition restrictions
- Non-solicitation provisions: Ensuring reasonable limitations on client or colleague contact
- Confidentiality terms: Balancing employer interests with your ability to seek new employment
New York-Specific Severance Considerations
New York law creates unique considerations for severance agreements:
- New York State’s restrictions on non-compete agreements are evolving, with increased scrutiny of such provisions
- New York City’s Earned Safe and Sick Time Act may affect payout of unused sick leave
- New York Labor Law Section 198-c governs payment of earned wages and benefits
- New York Human Rights Law claims release requirements are specific
- Older Workers Benefit Protection Act (OWBPA) requirements for age discrimination releases
Severance Negotiation Strategies
Our approach to severance negotiations is tailored to your specific situation:
Identifying Leverage Points
We analyze potential leverage including:
- Circumstances of your departure
- Potential legal claims
- Your value to the company
- Industry standards and precedent
- Your specific contract terms
- Company policies and past practices
Strategic Timing
The timing of negotiations can significantly impact results. We advise on:
- When to initiate negotiation
- How to respond to deadlines
- When to accept vs. continue negotiating
- Coordinating negotiation with your transition timeline
Communication Approach
We determine the most effective approach:
- Direct attorney negotiation
- Coaching you through self-negotiation
- Combination approaches based on your relationship with decision-makers
- Written vs. verbal communication strategies
Why Choose Dolce Law PLLC For Your Severance Negotiation?
Effective severance negotiation requires both legal expertise and strategic thinking about your career trajectory. At Dolce Law PLLC, we offer:
- Deep employment law knowledge: We understand the legal context surrounding severance negotiations
- Human rights perspective: We approach severance as part of treating departing employees with dignity and fairness
- Negotiation expertise: We have successfully negotiated numerous enhanced severance packages
- Holistic approach: We consider both immediate financial needs and long-term career implications
- Efficiency: We work quickly to meet employer deadlines while maximizing your package
- Transparent pricing: We offer clear fee structures for severance review and negotiation
The Severance Review and Negotiation Process
Our process typically involves:
- Initial consultation: We discuss your situation, review any existing offers, and identify potential leverage points
- Comprehensive review: We analyze all severance documents for problematic terms and improvement opportunities
- Strategy development: We create a tailored negotiation plan based on your specific circumstances and goals
- Negotiation execution: We implement the strategy through appropriate channels
- Document finalization: We ensure all agreed terms are properly documented in the final agreement
Frequently Asked Questions About Severance Agreements
Am I legally entitled to severance pay?
Generally, severance pay is not legally required unless promised in an employment contract, employee handbook, or established company policy. However, many employers offer severance packages to secure legal releases and maintain goodwill.
How much severance pay is standard?
While there’s no legal standard, common industry practice often provides 1-2 weeks of pay per year of service. However, the appropriate amount varies widely based on position level, circumstances of separation, potential legal claims, and company policies.
Should I sign a severance agreement without legal review?
We strongly recommend legal review before signing. Severance agreements contain complex legal provisions that may have significant consequences for your future employment opportunities and legal rights.
How long do I have to review a severance agreement?
If you’re over 40 years old, federal law requires employers to give you at least 21 days to consider the agreement (or 45 days in group terminations) and 7 days to revoke after signing. For employees under 40, New York employers typically provide a reasonable time for review, though there’s no specific requirement.
Can I negotiate better severance than what’s offered?
Yes. Most employers expect some negotiation, and our experience shows that skilled representation often results in improved terms. The potential for improvement depends on your specific circumstances and leverage points.
If you’ve been offered a severance package or are facing employment termination, timely legal advice is essential. Many severance agreements come with short deadlines. Contact Dolce Law PLLC for a confidential consultation to discuss your situation and explore how we can help maximize your severance benefits.
Secure the severance package you deserve. We’ll help you negotiate effectively.
What clients say
“Your deep understanding of the law and meticulous attention to detail were truly remarkable. You patiently explained complex legal concepts in a way that was easily understandable, empowering me to make informed decisions. I am deeply grateful for the empathy and support you provided throughout the process. Your compassionate approach and genuine concern for my rights as a woman of color alleviated much of the stress and anxiety associated with my case.”
“I truly appreciate your guidance and support in navigating this situation. Your expertise and kindness have made a significant impact, and I’m very grateful for some of the confidence you’ve helped me regain.”
“You have been so attentive and graceful throughout my ordeal and I truly appreciate you. This has been a very difficult time for me… Thank you so much for handling my case with grace and care. I’m excited to breathe a little better now.”
“Thank you so much for your support throughout this process — you and your team have been truly excellent. I appreciate your expertise and continued guidance.”
Your work is our business
Employment laws are complex and ever-changing. You don’t have to navigate them alone. If you’re an employee dealing with a difficult situation at work, we’ll help you solve your problems and achieve your goals.
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