They slid the document across the desk. Fourteen pages. You have two weeks to decide.

The severance is eight weeks of pay. Not great. But you need it. You’re afraid that if you ask questions, they’ll take it away. If you ask for more time, they’ll say, “Never mind.”

HR says everyone signs these. It’s standard. Just a formality.

So you sign on page twelve. Initial on pages three, seven, and ten. Date it. You’re done.

You just gave away more than you think.

The pressure is intentional

Severance agreements are designed to be signed under pressure. You just lost your job. You’re panicking about money. You’re worried about health insurance. You need that severance check.

The company knows this. That’s why they’re handing you a complex legal document when you’re least able to think clearly.

Two weeks sounds like plenty of time. It’s not. Most people spend the first week in shock. The second week was spent frantically searching for a job. They sign on day thirteen without reading it carefully.

And once you sign, it’s almost impossible to undo.

What you’re actually signing

That document isn’t a simple severance pay receipt. It’s a general release. You’re waiving your right to sue the company for almost anything that happened during your employment.

Discrimination claims. Gone. Harassment claims. Gone. Retaliation claims. Gone. Wage theft. Unpaid overtime. Denied bonuses. All of it.

The language is deliberately broad. “Any and all claims, known or unknown, arising from your employment.” That covers everything.

You’re also agreeing to nondisclosure. You can’t talk about why you left. You can’t talk about what happened. If you do, you might have to return the severance.

Some agreements include non-competes. You’re agreeing not to work for competitors. Not to contact former clients or colleagues.

That paragraph on page seven about confidentiality? It means you can’t tell the truth about your experience, even years later.

What they’re not telling you

Here’s what the HR person handing you that agreement didn’t mention.

If you’re over 40, federal law gives you special protections. The Older Workers Benefit Protection Act requires the company to give you 21 days to consider the agreement, not two weeks. If it’s a group layoff, you get 45 days. And you have seven days after you sign to change your mind and revoke it.

If the agreement doesn’t tell you this, the entire waiver might be unenforceable.

New York law provides even stronger protections. As of November 2023, if the agreement involves any claim of discrimination, harassment, or retaliation, the company can’t require you to pay penalties for violating a nondisclosure agreement. They can’t make you forfeit the severance if you talk. And they can’t make you sign a statement saying you weren’t discriminated against.

If your severance agreement has any of these provisions, the entire release is unenforceable under New York law.

Most severance agreements aren’t compliant. Companies are still using outdated templates that contain illegal provisions. They’re hoping you won’t know your rights.

The calculation you should be making

Severance isn’t a gift. It’s a purchase. The company is buying your silence and your agreement not to sue.

The question is whether they’re paying you enough for what you’re giving up.

If you have potential claims for discrimination, harassment, retaliation, or wage theft, those claims might be worth tens or hundreds of thousands of dollars. The company knows this. That’s why they’re offering you severance.

If they’re offering you eight weeks of pay to release claims that could be worth six figures, you’re getting a bad deal.

But you won’t know what your claims are worth unless you talk to a lawyer before you sign.

The negotiation you’re not having

Most people don’t realize that severance agreements are negotiable. The company presents it as take-it-or-leave-it. Standard language. Everyone signs.

That’s not true.

Everything is negotiable. The amount of severance. The length of health insurance continuation. Whether you have to sign a nondisclosure agreement. Whether there’s a non-compete. The scope of the release.

You have more leverage than you think, especially if you have potential legal claims. Companies will pay more to avoid litigation. A lot more.

But once you sign, your leverage is gone. You can’t negotiate after the fact.

What you can’t waive

Even with a general release, some rights can’t be taken away.

You can’t waive future claims. If the company discriminates against you or fails to pay promised severance after you sign, you can still sue.

You can’t waive your right to file an EEOC charge or participate in government investigations. You typically waive the right to get money, but you can still report them.

You can’t waive workers’ compensation or unemployment benefits.

You can’t waive vested pension benefits or COBRA health insurance.

In New York, as of 2023, you can’t waive your right to speak to law enforcement, government agencies, or your lawyer about discrimination, harassment, or retaliation. Any agreement that tries to prevent this is void.

The timing trap

If you’re over 40, you must get at least 21 days to consider the agreement. For group layoffs, 45 days. The clock starts when you receive the final offer.

After you sign, you have seven days to revoke.

But companies pressure you to sign faster. They imply the offer might go away. They make it difficult for you to ask for time.

Don’t fall for it. If you’re over 40 and they’re rushing you, they’re violating federal law. That might make the entire release unenforceable.

For everyone else, you can ask for more time. A reasonable company will agree. If they won’t give you time to review a legal document that strips your rights, that tells you something.

The language you should understand

General release: Giving up all legal claims against the company through the date you sign.

Knowing and voluntary: You have to understand what you’re signing and sign without pressure.

Consideration: The severance payment. Must be something you’re not already entitled to.

Non-disparagement: You agree not to say negative things about the company. Negotiate to make this mutual.

Confidentiality: You can’t disclose the terms or circumstances of your departure. In New York, strict limits apply for discrimination, harassment, or retaliation claims.

Non-compete: Can’t work for competitors for a specified time. Often unenforceable in New York.

When you need a lawyer

Before you sign anything. That’s when.

The company has lawyers. The agreement was written by their lawyers to protect the company, not you. You need someone on your side reviewing it.

An employment lawyer can tell you if you have potential claims that are worth more than the severance offered. They can tell you if the agreement has illegal provisions. They can negotiate a better deal.

The cost of a lawyer review is usually far less than the value they can add by negotiating better terms or identifying claims you didn’t know you had.

Most employment lawyers will review a severance agreement for an hourly fee. Some will do it on contingency if you have strong legal claims.

If you’re over 40, if you’ve complained about discrimination or harassment before being laid off, if you’ve taken medical or family leave recently, or if you’re owed unpaid wages or bonuses, you especially need a lawyer before signing.

What happens if you have already signed

If you’re over 40 and signed within the last seven days, you can revoke it. Send a written revocation to the person who gave you the agreement immediately.

If it’s been longer, it’s much harder. You’d need to prove the release is invalid. Maybe they didn’t give you the required time. Maybe they pressured you. Maybe the agreement has illegal provisions under New York law.

But these challenges are difficult. Much better to get a lawyer before you sign than to try to undo it after.

The New York advantage

New York law is stronger than federal law in several ways.

The November 2023 amendments prohibit companies from including liquidated damages or forfeiture provisions for violating nondisclosure agreements in discrimination, harassment, or retaliation cases. If your agreement has these provisions, the entire release may be unenforceable.

The law also prohibits requiring you to sign a statement denying that discrimination occurred. If they tried to make you do this, that’s another basis to challenge the release.

And New York law makes the 21-day consideration period waivable before litigation, but not after. So if you already filed a complaint and then they offer you a settlement, you get the full 21 days, no matter what.

New York courts also apply strict scrutiny to non-compete agreements. To be enforceable, a non-compete must be no greater than necessary to protect legitimate business interests, must not impose undue hardship on you, and must be reasonable in time and geographic scope. Many non-competes in severance agreements fail this test and are unenforceable.

What you should do right now

If you just got a severance agreement, don’t sign it yet. Even if they’re pressuring you. Even if you need the money.

Read it carefully. All of it. If you don’t understand something, that’s a red flag.

Make a list of questions. What claims are you releasing? What are you agreeing not to do after you leave? What happens if you violate the confidentiality clause?

Calculate what you’re giving up. Do you have potential claims for discrimination, harassment, retaliation, or unpaid wages? Those might be worth more than the severance.

Talk to an employment lawyer. Get the agreement reviewed before you sign. It’s worth the cost.

If you’re over 40, make sure the agreement complies with OWBPA. Check that it gives you 21 days to consider and 7 days to revoke. Check that it specifically mentions the Age Discrimination in Employment Act. Check that it advises you to consult a lawyer.

If the agreement doesn’t comply, don’t sign it. Tell them to fix it.

And if they’re pressuring you to sign immediately, that’s when you most need a lawyer.

When to call us

If you just received a severance agreement and you’re not sure whether to sign. If the agreement seems like a bad deal, but you’re not sure how to negotiate. If you complained about discrimination or harassment before being laid off, and now they’re offering you severance.

If you have already signed and you think the agreement might be invalid because they didn’t follow the law.

At Risman & Risman, we review severance agreements for New York employees. We can tell you if you have claims worth more than what they’re offering. We can negotiate better terms. We can identify illegal provisions that might make the release unenforceable.

If you’re being pressured to sign away your rights, call us at 212-233-6400 for a confidential consultation.

That severance agreement isn’t a formality. It’s a contract. And you shouldn’t sign it without understanding what you’re giving up.