Severance Reviews and Negotiations

When you leave a job—whether voluntarily or involuntarily—you may be offered a severance agreement by your employer. These agreements often include compensation in exchange for waiving your legal rights, including your right to sue for discrimination, wrongful termination, or unpaid wages. Before you sign any severance agreement, it's important to understand what you're agreeing to and whether the terms are fair.

At Zalkind Duncan & Bernstein LLP, we regularly assist employees in reviewing and negotiating severance agreements to ensure their rights are protected and that they are receiving appropriate compensation.

A severance agreement is a contract between an employer and employee that outlines the terms of separation from the company. These agreements often include:

• A lump sum or continuing severance payment
• Continuation of benefits such as health insurance
• A general release of claims against the employer
• Non-disparagement and confidentiality clauses
• Non-compete or non-solicitation restrictions
• Cooperation clauses requiring you to assist in future legal or business matters

Employers are not legally required to offer severance, but many do so to avoid future legal claims or to maintain goodwill with departing employees. However, these agreements often serve to protect the employer’s interests—not yours.

Severance agreements are binding legal contracts, and signing one without legal review can limit or waive important rights. Our attorneys have extensive experience identifying unfair or overly broad provisions in severance agreements and negotiating better terms for our clients.

We will help you:

• Understand your rights and obligations under the proposed agreement.
• Assess whether the severance amount is fair in light of your service, compensation, and potential legal claims.
• Negotiate better financial terms or continued benefits where appropriate.
• Identify and narrow restrictive covenants such as non-compete or non-solicitation clauses that may harm your future job prospects.
• Evaluate potential legal claims you may be releasing—such as discrimination, retaliation, or unpaid wage claims—and whether it makes sense to give those claims

You are not usually required to sign a severance agreement immediately. In fact, you may be legally entitled to time to review the offer:

• Under federal law, if you are 40 or older and your severance agreement includes a waiver of age discrimination claims, your employer must give you 21 days to consider the agreement (or 45 days in some group termination situations), and 7 days to revoke your acceptance after signing.
• Even if you are not covered by these rules, it is still wise to take the time to carefully review the agreement with counsel.

We understand that job transitions can be stressful, and we offer prompt, efficient reviews to meet your deadlines.

Our firm routinely represents employees at all levels—executives, professionals, hourly workers, and others—in reviewing and negotiating severance agreements. We can:

• Conduct a thorough legal review of your agreement
• Advise you on whether to accept, reject, or negotiate
• Communicate directly with your employer or their attorneys, if desired, to negotiate improved terms
• Help you assess whether pursuing legal claims might result in a better outcome

We tailor our approach to your goals—whether you simply want to understand your agreement before signing or want us to push for a more favorable package.

If you’ve been offered a severance agreement, understand your rights before you sign. Contact Zalkind Duncan & Bernstein LLP to schedule a confidential consultation. We can help you evaluate your options and ensure you’re making the best decision for your future.