Severance Agreement Attorney in New Jersey — Know What You're Signing

When your employer hands you a severance agreement, they are not doing you a favor. They are protecting themselves. The fine print in most severance agreements waives your right to sue your employer — for discrimination, wrongful termination, unpaid wages, and more — in exchange for a payment that may be far less than what your claims are actually worth.

Before you sign anything, talk to a severance agreement attorney in NJ. At The López Firm, we review severance agreements, explain exactly what rights you are giving up, and in many cases negotiate better terms on your behalf.

What Does a Severance Agreement Actually Say?

Most employees receive a severance agreement and assume the terms are standard or non-negotiable. Neither is usually true. A typical severance agreement includes a release of all legal claims against the employer, a non-disparagement clause, a non-disclosure or confidentiality agreement, and sometimes non-compete or non-solicitation provisions.

By signing, you are permanently giving up the right to pursue those claims — even if you later discover you were discriminated against, wrongfully terminated, or denied benefits you were entitled to. Attorney Omar A. López will walk through every provision with you so you understand exactly what you are agreeing to before you put your name on the document.

Can Severance Agreements Be Negotiated?

Yes — more often than employees realize. Employers frequently have room to negotiate, especially when an employee has potential legal claims. The López Firm has experience negotiating severance agreements on behalf of New Jersey employees, seeking improvements to the payment amount, the release language, non-compete provisions, benefit continuation, and reference terms.

Even if you ultimately decide to accept the severance, going through the negotiation process with an attorney often results in a better outcome than signing what was initially offered.

ERISA Severance Plans — When Federal Law Controls

Some employers provide severance through a formal ERISA-governed severance plan rather than through an individually negotiated agreement. When severance is structured as an ERISA plan, your rights and remedies are governed by federal law — not state contract law.

This distinction matters enormously. Under ERISA, you are required to exhaust the plan's internal appeal process before you can sue in federal court. The deadlines are strict. And the damages available in federal court are more limited than under state law in most circumstances.

If you are not sure whether your severance is governed by ERISA, The López Firm can review your plan documents and advise you on exactly where you stand. As an ERISA severance plan lawyer, Omar A. López has the experience to identify the governing framework and build the right strategy for your situation.

Frequently Asked Questions about Severance

  • By signing, you are permanently giving up the right to pursue those claims — even if you later discover you were discriminated against, wrongfully terminated, or denied benefits you were entitled to

  • If your severance benefits under an employer plan have been denied or reduced, you have the right to appeal under ERISA. The appeal deadline begins to run from the date of the denial. As with all ERISA claims, the administrative appeal is the foundation of any subsequent litigation — so having an attorney involved from the start is critical.

  • You can reach us anytime via our contact page or email. We aim to respond quickly—usually within one business day.