New York Employment Lawyer Blog

We previously wrote a blog about negotiating severance agreements and severance packages. This follow-up post specifically deals with the issue of unemployment insurance benefits and severance agreements.

In New York State, you are generally not disqualified from receiving unemployment insurance benefits if you are at the same time receiving separation related benefits such as severance pay or a severance package. However, if your severance package constitutes receipt of your full salary and exactly the same benefits that you received while you were working with the understanding that the salary and benefits will discontinue if you get a job elsewhere, then you are disqualified from receiving unemployment insurance benefits. Some employers do this to prevent you from double dipping and collecting both a severance package and unemployment insurance benefits, but most severance agreements do not have this provision. Your employer's payment to you of unused accrued vacation time will not affect your eligibility for unemployment insurance benefits.

It is important you carefully examine any limitations receiving severance pay may place on your right to unemployment benefits. Effectively negotiating your severance agreement could affect your future employment status as well as your financial health. Our attorneys can help you analyze your severance package including your non-compete clause, stock option payments, right to positive reference, as well as any releases or waivers. For example, if you think you might have an employment discrimination lawsuit, one of our New York Severance Contract Lawyers can help you figure out if you have a valid lawsuit before you sign a release or waiver to discrimination claims you might have against the company.

Our New York Severance Pay Attorneys can help you negotiate critical terms such as the duration and manner of your severance pay. Before you sign a severance agreement, contact one of our experienced Severance Agreement Attorneys at (800) 893-9645 to help you read the fine print to make sure you are not limiting your right to unemployment benefits or other important legal options.

Continue reading "New York Severance Pay Follow-Up: Does receiving severance pay disqualify me from being eligible for Unemployment Insurance Benefits in New York State? " »

As a result of the recent economic recession, layoffs and downsizing, it is increasingly more important to negotiate a fair severance agreement. In 2001, only 5% of professionals and 4% of supportive staff negotiated their severance packages whereas in 2008, 31% of professionals and 22% of administrative workers did so. A strong severance agreement can help cushion the burdens of unemployment until you find your next job. Don't sign your severance agreement until you read the following top 10 things to keep in mind:

1) The most important thing in any negotiation is to keep your emotions in check. Give yourself time to process what the company is offering you without being angry at the company for laying you off. By acting professional and courteous, you can be in much better to seek assistance of competent counsel and negotiate a much better agreement.

2) Be wary of immediately signing any waivers or releases to claims arising out of your employment with the company. Are there are any claims you might have against the company for workplace discrimination based on age, gender, race, sexual orientation, or retaliation. For example, did the company lay off all the higher paid employees who are older employees? Is there a potential age discrimination lawsuit? It depends on the facts and each situation is different. There are special rules for severance agreements under the Age Discrimination in Employment Act (ADEA) and the Older Workers Benefit and Protection Act (OWBPA). The release provision may be invalid if your employer did not follow the specific rules. In the event you think you might have an employment discrimination lawsuit, do not sign the severance agreement without speaking to an attorney. With the help of a Workplace Attorney, figure out if you have a valid lawsuit, how much it is worth, and whether that claim is worth more than the severance package. If your claim is worth more than the severance package and you decide not to go forward, you can still use your claim as leverage to negotiate a better severance package.

3) Extended health insurance is an extremely important issue that can cost you thousands if you don't negotiate. If your former employer has more than 20 employees and offers your health insurance, except in limited circumstances, the company must offer you the opportunity to continue health insurance coverage at your expense for 18 months. Although you will have to pay for it, it may be still be cheaper than buying individual health insurance on your own and it may provide better coverage than you may find with an individual policy. As described in our prior blog post, you may also be eligible for a federal COBRA 65% subsidy of the health insurance coverage.

Continue reading "Negotiating Severance Agreements: Top 10 Things You Need to Know" »