Merger or Takeover? Don’t Let the New Company Push You Aside

When Companies Merge, Workers Often Get the Short End: Unless They Push Back

When your employer merges with another company, your job security can disappear overnight. Titles shift, benefits change, and long-standing policies can vanish under the label of “transition.” Even if you’re told everything will stay the same, you may soon find out that nothing is. In the middle of corporate chaos, your severance, bonuses, and even your job itself could be on the line.

At Horn Wright, LLP, our business transaction lawyers help New York employees push back when they’re told to just “go with the flow.” You have rights that carry over, regardless of how many new executives show up. We’re here to help you keep your place, or walk away on your terms.

What Changes, and What Must Stay the Same

During mergers and acquisitions, the acquiring company may want to rewrite policies—but that doesn’t mean they can ignore the past. If you had an employment agreement or earned company stock, the new employer might still be legally bound to honor it. That’s especially true if the deal was structured as a full buyout and not just an asset sale.

You may still be entitled to the following:

• Accrued but unused vacation time. Under New York Labor Law, earned PTO is considered a wage, and employers are generally required to pay it out if it’s not transferred.
• Severance terms written into old agreements. If you had an individual contract, or if severance was outlined in a handbook, the new company may inherit that responsibility.
• Previously promised bonuses or equity. If you already hit your targets before the merger, you may still be owed compensation, even if the payout date hasn’t arrived yet.

We review all of your legacy agreements to determine what must carry over and how to enforce it.

Severance Agreements During Corporate Chaos

Mergers often lead to layoffs, and in the shuffle, severance agreements tend to appear quickly. The offers may look final, but in our experience, they’re anything but. Acquiring companies want to avoid bad press and internal friction, which makes severance packages one of the few things they’re often willing to negotiate.

We’ve helped employees:

• Extend their healthcare benefits beyond COBRA limits. This often includes company-paid coverage for three to six months after the exit.
• Get severance calculated based on total tenure, not just the time under the new owner. This is especially valuable for longtime employees whose history is being overlooked.
• Secure neutral reference letters and agreed-upon exit language. These protections are key when reentering the job market after a forced departure.

Even in times of transition, you don’t have to settle for less than you’ve earned.

Gaps in Coverage You Might Miss

When two companies come together, HR systems don’t always sync perfectly. Mistakes happen. Unfortunately, those mistakes often hurt employees, not the companies.

You might notice that your vacation hours disappeared, your bonus plan vanished, or your health plan changed mid-year. If you were promised certain benefits under your original employer, and they suddenly vanish without explanation, we may be able to step in. Coverage gaps can be more than just frustrating, they can be legally actionable under both state and federal labor protections.

Don’t Let Them Use “Transition” as an Excuse

It’s easy for companies to blame disorganization or “growing pains” for missing documents and overlooked policies. But if those oversights cost you money, benefits, or job security, you don’t have to just accept it. New owners don’t get to erase your rights with a rebrand.

Rights That Carry Over Under the Law

In many mergers, the new company becomes what’s known as a “successor employer.” That means they inherit not just assets, but liabilities—including the obligation to honor contracts and existing workplace protections. If your job is covered by a collective bargaining agreement or employment contract, that protection may still apply post-merger.

Laws such as the WARN Act also require large employers to provide advance notice of mass layoffs. If your job was eliminated during the merger and you didn’t get proper notice, you may be owed 60 days of pay and benefits.

We help you determine what rights still apply and how to assert them, without putting your future at risk.

How Employers Try to Cut Costs at Your Expense

Cost-cutting during a merger is common—but some companies take it too far. They may reclassify positions to reduce severance payouts, rush changes to retirement plans, or pressure employees to “voluntarily” resign to avoid layoff obligations. These tactics can be challenged when they go beyond what’s legally acceptable.

We often uncover:

• Quiet changes to eligibility for bonuses and stock vesting dates. These are sometimes backdated to exclude workers just before a merger is finalized.
• Handbooks rewritten to avoid honoring prior commitments. If this happens without clear notice or consent, it may not be enforceable.
• Terminations disguised as “resignations” to limit payout obligations. If you were pressured to leave, you may still qualify for severance under New York law.

Companies don’t always explain these decisionsm but we know how to spot them in the fine print.

Getting Clarity on What You’re Really Owed

With all the changes happening, even HR may be confused about what applies and what doesn’t. But confusion doesn’t excuse nonpayment or unfair treatment. Before signing anything, you’re entitled to clear, written answers about what benefits continue, what’s changed, and what’s being waived.

Our business transaction lawyers work with employees across New York to get those answers in writing, before it’s too late to push back.

How to Secure a Solid Deal Before You’re Let Go

You don’t have to wait for bad news to protect yourself. If a merger is in progress and your role seems vulnerable, this is the time to prepare. Gathering information now gives you leverage later, and makes it harder for the company to take advantage of uncertainty.

Legal Leverage When Companies Change Hands

Even before layoffs begin, you can protect your exit terms by getting your documentation in order. Acquiring companies want smooth transitions, which gives you bargaining power if you're prepared and professional.

We help clients:

• Identify old agreements and benefit plans that are still in force. This includes offer letters, bonus plans, and deferred compensation programs.
• Collect performance reviews and awards that prove their value to the company. These documents often justify better severance terms or retention bonuses.
• Draft early negotiation requests tied to tenure, leadership roles, or sensitive transition responsibilities. The company may agree to terms just to preserve morale and avoid PR risks.

Being proactive puts you in the best position to shape your own outcome.

Wording That Protects Your Benefits

Vague severance language often leads to disputes later. You want clear wording about COBRA continuation, retirement plan vesting, and final paycheck terms. We revise severance agreements to include firm timelines, payout specifics, and protection from surprise deductions or policy changes.

We also make sure you’re not waiving rights unknowingly. Sometimes one paragraph can eliminate your ability to challenge discrimination or unpaid wages—and that’s a risk you don’t want to take.

When to Ask for a Legal Review, Early

Once you’re handed a final agreement, your time to respond is limited. That’s why we advise clients to start early, before layoffs begin or while transition rumors are still flying.

Our business transaction lawyers help you understand what’s enforceable, what’s negotiable, and what might be missing entirely. It’s never too early to protect yourself.

Don’t Let the Deal Leave You Behind

Mergers may change leadership, branding, and budgets—but they shouldn’t erase your rights. Whether you’re staying put or stepping away, your severance and benefits deserve legal attention, not corporate shortcuts.

At Horn Wright, LLP, our business transaction lawyers support New York employees navigating corporate transitions with clarity and strength. We handle severance reviews, benefit disputes, and negotiations with a clear goal: to protect what you’ve earned.

If you want representation from a nationally recognized law firm, we’re ready when you are. Call Horn Wright, LLP, today to make sure the deal doesn’t leave you behind.