Employee Contracts & Severance: What You Need to Know

Whether you’re starting a new job or leaving one, employment contracts and severance agreements can significantly affect your rights, your income, and your legal options. These documents may seem routine — but they often include restrictive terms, waivers, or unclear obligations that could cost you in the long run.

New York employees are often asked to sign contracts that include non-compete clauses, confidentiality agreements, or arbitration clauses that limit your ability to take legal action later. Similarly, severance agreements may require you to give up important rights — including the right to sue — in exchange for a payment.

You don’t have to sign immediately. Before agreeing to anything, it's wise to have a lawyer review your contract or severance offer to protect your interests and negotiate better terms.

Your Rights Include:

• The right to review or negotiate employment contracts before signing

• The right to refuse non-compete or overly broad clauses in many situations

• The right to receive clear information about compensation, job duties, and termination policies

• The right to not be forced into arbitration or waiver of rights without informed consent

• The right to review severance agreements before accepting (you often have 21+ days if over 40)

• The right to seek legal advice before signing any agreement

Contracts and severance deals can bind you long after your job ends. A review now can prevent expensive problems later.