Signed Something You Regret? How to Fight Back After a Bad Severance Deal

Don’t Let a Bad Severance Agreement Define Your Future

You might’ve walked out of your job with a severance packet in one hand and a pit in your stomach. Maybe you were in shock, or maybe you felt like you had to sign quickly to get any compensation at all. In New York, companies often rush this process, and employees are left feeling cornered. Suddenly, your career path feels blocked and your rights feel compromised.

At Horn Wright, LLP, our team of experienced employment and business transaction lawyers helps clients challenge and renegotiate severance agreements across New York State. If you’re second-guessing what you signed or feel you were misled or pressured, we’re here to dig in, review the fine print, and offer a real legal strategy, so you don’t have to carry that regret.

What You Can Do If You Signed Under Pressure

Getting let go is stressful enough. Getting pushed to sign a contract while you're still processing the news? That’s a whole different kind of pressure. Many employees across New York are given severance documents on the spot, with instructions to “sign and return ASAP.” The power imbalance in that moment is real.

New York contract law considers intent, knowledge, and fairness. If you didn’t have time to review your options or if you signed because you felt coerced, there could be legal ground to contest the agreement. Coercion and duress aren’t just emotional, they’re actionable when they affect the validity of a contract.

You still have legal rights even after you sign. If the situation was unfair, or if key facts were left out, we can help you explore options to hold the employer accountable and possibly reverse the agreement's effects.

How to Spot Red Flags Even After the Ink Is Dry

Once the panic wears off, a second look at that severance agreement can reveal some ugly surprises. It’s not uncommon to discover that you’ve given up far more than you gained, especially if the language is buried in dense legalese.

Red flags to watch for in New York agreements often include:

• Overreaching non-compete clauses. These might prevent you from working in your industry for an unreasonable amount of time or distance. In New York, such restrictions may not hold up in court if they’re overly broad or limit your ability to earn a living.
• Release language that gives away too much. Some agreements include clauses that waive future claims you may not have even known existed. That can include protections under the New York State Human Rights Law or the federal Civil Rights Act of 1964.
• Promises made by HR that don’t appear in writing. If someone told you verbally that you’d keep your benefits or receive bonuses that never materialized, that’s a warning sign. These inconsistencies may affect whether the agreement is enforceable.
• Unclear deadlines and benefit transitions. If COBRA coverage, stock options, or pension timelines are buried in jargon or vague terms, you could miss something important. These omissions can cost you money or coverage you’re entitled to under ERISA.
• Language that seems to restrict legal reporting. You cannot waive your right to file a complaint with the Equal Employment Opportunity Commission (EEOC) or participate in an investigation. If your agreement implies that you can’t, that section may be invalid.

These issues can create serious barriers to your career or legal protections. If any of these terms feel off, a legal review could be your next best move. Agreements that seem airtight on paper often have real weaknesses when viewed through the lens of state and federal law.

Challenging an Agreement You Now Regret

If you're staring at a signed document thinking, “What have I done?”, you’re not the only one. Many New Yorkers are surprised to learn that severance agreements are not always final. When problems come to light after signing, you may have the right to challenge the deal.

We look at how the agreement was presented and whether any misleading statements or unfair tactics were used. If your employer left out key facts or misrepresented important terms, that’s a problem. And if the timing or presentation of the contract violated New York Labor Law § 740 or federal anti-retaliation statutes, that’s something we can act on.

Even regret itself can become a reason to review. If your signature came from a place of confusion or fear, we’ll work with you to see if that contract holds up.

Legal Ways to Unwind a Severance Mistake

Severance deals are legal contracts, but like any contract, they must meet certain conditions to be enforceable. If they don’t, if you were misled, pressured, or denied basic fairness, you may be able to challenge the deal under New York or federal law.

In some situations, courts will allow parts or all of an agreement to be thrown out. It’s not easy, but it is absolutely possible when the facts are on your side.

When You Can Legally Undo or Alter Your Agreement

New York courts and labor statutes provide several scenarios in which a severance agreement can be reviewed, renegotiated, or even rescinded:

• You were rushed or pressured to sign. If your employer demanded a signature without giving you time to consult legal counsel or fully understand the document, that could qualify as duress. This is especially important if the agreement included a waiver of legal claims under the Older Workers Benefit Protection Act (OWBPA).
• The employer misrepresented facts. If you were told something untrue about your benefits, job prospects, or eligibility for unemployment, that misinformation may void parts of the deal. Courts take deliberate deception seriously.
• You waived rights you didn’t understand. Not all waivers are enforceable, especially when it comes to discrimination claims under the Age Discrimination in Employment Act (ADEA) or Americans with Disabilities Act (ADA).
• Critical information was withheld. For example, if your employer failed to disclose an internal investigation or upcoming layoffs, you may have signed under a false sense of security. That could open the door for legal review.
• There was a material mistake. If both parties misunderstood key terms, or if your compensation calculation was wrong, courts may allow changes to the agreement.

We don’t rely on loopholes. We build real legal arguments rooted in fairness, equity, and clear violations of state or federal statutes.

Can You Negotiate New Terms After Signing?

Absolutely, especially if we can show that the agreement was incomplete, deceptive, or unenforceable. Employers often want to avoid drawn-out disputes or the risk of public complaints, especially when legal defects are brought to light.

Renegotiation might open the door to:

• More favorable severance payments. If your severance package was lower than others in similar positions, or if you were misled about the amount, we may be able to push for increased compensation. Some companies will revise terms simply to avoid liability.
• Removal of damaging restrictions. Agreements sometimes include overly broad non-disparagement or non-solicit clauses. These can often be renegotiated or narrowed to avoid harming your future employment.
• Restoration of benefits or coverage. If healthcare or stock options were improperly cut off, we may be able to have those restored. Employers can be held accountable for violating ERISA-based benefit protections.
• Clarified re-employment terms. We’ve helped clients add language ensuring that they won’t be blocked from future job references or opportunities. A more neutral or supportive exit narrative can make a big difference.

If your current agreement doesn’t reflect your value or legal rights, we’ll help you pursue better terms, strategically and efficiently.

Lawyers Can Step In, Even After You Sign

One of the biggest myths we hear is that once the deal is signed, it’s untouchable. That’s simply not true. Whether your agreement was signed yesterday or last month, legal intervention can still make a difference, especially if we act quickly.

Our team focuses on the details employers often gloss over. From contract language to communication records, we find the leverage points others miss. And we work hard to keep you informed every step of the way.

When a Lawyer Can Still Help Fix a Severance Disaster

Even if you’ve already started receiving payments or signed a waiver, a business transaction lawyer can often step in. Agreements that include releases, restrictive covenants, or settlement clauses must still meet legal standards under New York General Obligations Law § 5-701 and applicable federal protections.

We’ll examine:

• Whether you received adequate time to review the contract
• If the employer’s conduct meets good faith standards
• If the agreement violates public policy or oversteps legal boundaries

And if it does? We’ll help you press for fair treatment and a possible correction.

How Fast You Need to Act if Something Feels Off

Timing is critical, especially if your agreement involved waivers of legal claims or deadlines tied to severance payouts. The OWBPA grants a 7-day revocation window for certain age-related claims. But fraud, coercion, or misrepresentation may give you longer, depending on the situation.

Don’t assume you’ve missed your chance. If something about your severance agreement doesn’t sit right, it’s worth getting a legal review.

What Outcomes Are Possible Post-Signature?

Every severance case is different, but our clients in New York have achieved real results, even after signing:

• Removal of harmful clauses. We've helped clients eliminate non-competes or confidentiality clauses that would have blocked future work. These wins protect long-term career options.
• Increased compensation or benefits. Sometimes companies are willing to pay more once their legal exposure becomes clear. We’ve seen clients walk away with meaningful financial improvements.
• Restored job access or references. We’ve renegotiated the terms of departure to ensure clients can still get hired elsewhere without reputational harm. A revised exit statement can make future transitions smoother.
• Invalidation of the entire agreement. In extreme cases, we've seen contracts thrown out due to fraud or coercion. This resets the playing field and allows for a fresh negotiation.

Work With Trusted New York Lawyers Who Know Severance Law

You don’t have to live with the consequences of a rushed signature. At Horn Wright, LLP, our business transaction lawyers can help you explore options and potentially challenge unfair terms. Severance doesn’t have to be the end, it can be the beginning of a smarter, stronger chapter.

If you’re ready to work with one of the most highly regarded employment law firms in the country, we’re here to guide you through what’s next.