New Jersey Severance Agreement Attorney

When an employer offers a severance agreement, it is almost always because the employer wants something in return: a release of legal claims. Understanding what you are giving up — and what you could potentially recover — is essential before signing any separation agreement.

Severance agreements in New Jersey can be complex documents that waive significant legal rights, including claims for wrongful termination, discrimination, harassment, and retaliation. In exchange, the employer offers a payment — but that payment is often negotiable, and the initial offer frequently undervalues the employee's leverage.

An experienced employment attorney can review your agreement, identify any problematic provisions, assess the value of any claims you may be releasing, and negotiate for better terms. In many cases, we are able to significantly increase the severance amount, improve non-disparagement provisions, extend benefits, or modify restrictive covenants.

Why the First Offer Is Rarely the Best Offer

Employers draft severance agreements to protect their interests. The initial offer is designed to resolve the separation quickly and cheaply. But employers expect negotiation — particularly when the employee has potential legal claims. If you were terminated under circumstances that suggest discrimination, retaliation, or other unlawful conduct, your leverage is significantly greater than the initial offer reflects. An attorney can assess the strength of any potential claims and use that leverage to negotiate a substantially better package.

Special Protections for Employees Over 40

The Older Workers Benefit Protection Act (OWBPA) imposes specific requirements on severance agreements that include a release of age discrimination claims. For employees 40 and older, the agreement must specifically reference the Age Discrimination in Employment Act, provide at least 21 days to consider the agreement (45 days in a group layoff), and allow 7 days to revoke after signing. Agreements that do not comply with OWBPA are unenforceable as to age discrimination claims. If you are 40 or older and were offered a severance agreement, these protections are particularly important.

Non-Compete and Restrictive Covenant Review

Many severance agreements include or reference non-compete, non-solicitation, and non-disclosure provisions. New Jersey courts scrutinize non-compete agreements carefully and will not enforce provisions that are unreasonably broad in scope, duration, or geographic reach. An attorney can assess whether any restrictive covenants in your agreement are enforceable, negotiate to narrow their scope, or challenge provisions that would unreasonably restrict your future employment opportunities.

What Happens If You Don't Sign

You are never required to sign a severance agreement. If you do not sign, you retain all of your legal rights and can pursue any claims you may have. However, you also forgo the severance payment. The decision whether to sign depends on the strength of your potential claims, the amount offered, and your personal circumstances. An attorney can help you make an informed decision by giving you a realistic assessment of what your claims might be worth compared to what is being offered.