When a job ends, employers often present a severance agreement with a deadline to sign. These documents can look straightforward—but they frequently contain complex legal terms that affect your future rights. Before signing away potential claims, it is wise to speak with experienced counsel regarding Severance Agreements to ensure you receive fair compensation and clear terms.
Castronovo & McKinney, LLC focuses exclusively on employment law and has reviewed and negotiated hundreds of severance packages for clients across New Jersey. Their strategic approach helps employees secure stronger financial outcomes while protecting professional mobility.
What Is a Severance Agreement?
A severance agreement is a contract between an employer and employee that typically provides compensation or benefits in exchange for the employee’s release of legal claims. While employers are not generally required to offer severance, once an offer is made, it may be negotiable.
These agreements often include provisions related to payment terms, confidentiality, non-disparagement, non-compete clauses, and waivers of potential claims under state and federal law.
Why Review Is Essential
Signing a severance agreement usually means giving up the right to pursue claims for discrimination, retaliation, wage violations, or wrongful termination. Without careful review, employees may accept compensation that is significantly lower than what they could potentially recover through legal action.
Castronovo & McKinney evaluates whether the severance offer reflects the employee’s length of service, position, and potential legal claims. In many cases, skilled negotiation results in increased compensation or more favorable terms.
Key Provisions to Examine
Severance agreements frequently contain clauses that deserve close attention, including:
- Release of Claims: Identifies which legal rights are being waived.
- Non-Compete and Non-Solicitation Clauses: May restrict future employment opportunities.
- Confidentiality Requirements: Limits what the employee can disclose about the agreement.
- Non-Disparagement Provisions: Prohibits negative statements about the employer.
- Payment Structure: Details lump-sum or installment payments and tax considerations.
Understanding the long-term implications of each clause is essential before agreeing to the terms.
Age Discrimination Considerations
When employees over 40 are asked to sign severance agreements, federal law requires specific disclosures and review periods under the Older Workers Benefit Protection Act (OWBPA). These provisions ensure employees have adequate time to consider the agreement and consult counsel.
Failure to comply with these requirements can impact the enforceability of the waiver.
Negotiation Strategies
Employers often expect some level of negotiation. Factors that may support improved terms include length of employment, performance history, potential legal exposure, and industry standards.
Castronovo & McKinney approaches severance negotiations with thorough preparation, leveraging knowledge of employment law and litigation risk to advocate effectively on behalf of clients.
Protecting Future Career Opportunities
Restrictive covenants in severance agreements can limit where and how an employee works after departure. Negotiating narrower restrictions—or removing them entirely—can preserve professional flexibility and income potential.
Experienced employment counsel ensures that agreements strike a fair balance between employer interests and employee rights.
Serving Clients Across New Jersey
Based in Morristown, Castronovo & McKinney, LLC represents employees and employers throughout Bergen County, Essex County, Middlesex County, Morris County, and surrounding communities including Newark, Hackensack, and New Brunswick.
Castronovo & McKinney, LLC
71 Maple Ave
Morristown, NJ 07960
Phone: 973-920-7888
Email: tom@cmlaw.com
Hours: Monday – Friday, 9:00 AM – 6:00 PM
The end of employment does not have to mean accepting unfavorable terms. With focused expertise in employment law, Castronovo & McKinney provides the informed guidance necessary to negotiate severance agreements confidently and effectively.
