Before you sign what your employer hands you
Read it before you sign it
A severance agreement usually trades a payment for your promise not to sue, and often for confidentiality, non-disparagement and cooperation terms. Once you sign, it can be very hard to undo. A short review can show whether the offer is fair, whether it gives up claims you did not know you had, and what can be negotiated.
What we look for
- The release. Which claims you are giving up, and which ones the law does not allow you to give up.
- Wage claims. Federal wage claims generally cannot be settled privately in New York without a court's or the Labor Department's approval, so a release in a severance agreement may not cover them.
- Age claims. Workers 40 and older must be given at least 21 days to consider a release of age claims (45 days in a group layoff), 7 days to revoke after signing, and written advice to consult a lawyer.
- Confidentiality and non-disparagement. The federal Speak Out Act makes pre-dispute non-disclosure and non-disparagement clauses unenforceable in sexual assault and sexual harassment disputes. New Jersey law makes clauses that would conceal details of discrimination, harassment or retaliation unenforceable against the employee, and New York limits confidentiality terms in settlements of discrimination claims.
- Non-competes and non-solicits. Whether a restriction is likely enforceable depends on the state and on how broad it is. Florida enforces reasonable restrictive covenants by statute (Fla. Stat. § 542.335), and a 2025 Florida law made certain agreements with higher earners easier to enforce.
- Money and timing. Payment schedules, health insurance continuation, bonuses and commissions already earned, equity, and references.
Agreements at the start of a job
We also review offer letters, employment contracts, commission and bonus plans, arbitration agreements and restrictive covenants before you sign, so you understand what you are agreeing to.
If you were let go, see also retaliation and wrongful termination and discrimination.
Frequently asked questions
Is my employer required to pay severance?
Usually not. Severance is generally a matter of contract or company policy. But employers often offer it in exchange for a release, and the amount can sometimes be negotiated.
How long do I have to decide?
If you are 40 or older and the agreement releases age claims, federal law gives you at least 21 days to consider it, or 45 days in a group layoff, and 7 days to revoke after signing. Otherwise the deadline is whatever the agreement says, and it can often be extended if you ask.
Can a non-compete stop me from working in my field?
Sometimes. Courts enforce restrictions that are reasonable in time, place and scope and that protect a legitimate business interest. Florida enforces them more readily than New York does. Have the agreement reviewed before you accept a new job.