SEVERANCE AGREEMENTS

Severance Agreements are often offered by employers when terminating an employee, and they typically provide the employee with some form of compensation in exchange for signing a legal release of claims against the employer. However, it's important to know that severance agreements are subject to certain laws and regulations in New York.

First and foremost, it's important to understand that under New York law, employers are not required to offer severance pay to employees who are terminated. However, if an employer does offer severance pay, there are certain legal requirements that must be met in order for the agreement to be enforceable.

One of the key requirements is that the severance agreement must be in writing and signed by both the employer and the employee. Additionally, the agreement must specifically state whether the employee is waiving their right to sue the employer for any claims arising out of their employment or termination. This is often referred to as a "release of claims" provision.

Another important requirement is that the employee must be given a reasonable amount of time to review and consider the severance agreement before signing it. Specifically, New York law requires that employees be given at least 21 days to consider the agreement (or 45 days if the agreement is part of a group termination program).

It's also worth noting that there are certain types of claims that cannot be released in a severance agreement, even if the employee agrees to do so. For example, claims for workers' compensation, unemployment benefits, or claims under the National Labor Relations Act cannot be waived in a severance agreement.

Finally, it's important to understand that severance pay is generally considered taxable income under federal and state law. This means that the employer will be required to withhold taxes from the severance pay, just as they would for regular wages.

While New York employers are not required to offer severance pay to employees who are terminated, those who do must comply with certain legal requirements in order for the severance agreement to be enforceable. If you have questions or concerns about a Severance Agreement you have been offered, or would like your severance agreement reviewed, contact our office for a Free Consultation and Flat-Fee review!