Severance and Disability: Know Your Rights, Demand Fairness

What the ADA Says About Your Severance Agreement

When you’re laid off while managing a disability, it’s not just a job you’re losing. You may also be facing the sudden disruption of accommodations, medical coverage, or routines carefully built around your needs. And while employers might offer a severance package, not every deal respects the protections you’re entitled to under the law.

At Horn Wright, LLP, our business transaction lawyers help employees across New York hold employers accountable when disability and severance intersect. We review the paperwork, flag the red flags, and make sure your exit is fair, legally and personally.

Disability Protections Don’t End When Your Job Does

The Americans with Disabilities Act (ADA) doesn’t stop protecting you just because your role is being eliminated. Even during layoffs, employers must avoid discrimination and ensure accommodations are not used as a reason to terminate. If your disability status played a role in your layoff, or if your employer tried to “quietly” push you out during a medical leave, your rights may have been violated.

And under New York State Human Rights Law, those protections extend even further. If your employer has just four or more employees, they’re required to engage in a cooperative dialogue about accommodations, and that expectation doesn’t vanish when layoffs begin.

How Severance Deals Can Conflict with Federal Law

Severance agreements are often written by lawyers working to protect the company. Unfortunately, that means they sometimes include clauses that conflict with your federal rights. You may be asked to waive claims you didn’t know you had or to sign documents that limit your ability to report discriminatory behavior.

We often find hidden issues in these documents:

• Overbroad waivers that include ADA claims. These can block you from holding the employer accountable for unlawful disability-based actions.
• Inaccurate termination language, such as labeling the layoff as a “voluntary” resignation to avoid triggering benefits.
• Non-disparagement clauses that stop you from talking about your workplace experience, even if mistreatment occurred.

These provisions aren’t always enforceable, but you need a legal review to know what’s fair and what crosses the line.

Watch for Hidden Discrimination in the Fine Print

Not all discrimination is loud or obvious. Sometimes, it hides in delays, vague terms, or sudden silence. If your severance agreement is rushed, unclear, or full of complex legal language, take a step back. Was your layoff one of many, or were you singled out soon after requesting an accommodation?

Our business transaction lawyers help uncover patterns and inconsistencies that suggest retaliation or discrimination. We also guide you on whether to negotiate, revise, or refuse a deal that feels off. You don’t have to accept less just because you were dealing with more.

Don’t Let Them Strip Away Your Accommodations

A disability doesn’t disappear the day your job ends, and neither should your access to support. Yet, far too often, employers treat layoffs as an excuse to abruptly cut benefits, block extended coverage, or walk away from long-promised resources. That’s not just wrong, it’s sometimes illegal.

Whether Employers Can Cut Off Health Benefits or Access

In most cases, employers are required to offer you the option to continue your health coverage under COBRA. But they aren’t allowed to mislead you about what’s covered or deny you the chance to extend your benefits just because a disability is involved.

What you should know:

• COBRA continuation typically lasts 18 months, and you can pay to keep your same plan.
• Some severance agreements offer subsidized COBRA, especially when layoffs are tied to broader restructuring.
• Disability-based extensions may qualify you for additional COBRA time, depending on when the Social Security Administration recognizes your status.

Our legal team ensures your employer presents your options clearly, and follows through.

Holding on to Extended Coverage and Disability-Related Resources

Your accommodations may have included flexible work hours, ergonomic tools, or assistive technology. While those don’t always transfer post-employment, you may still be entitled to transitional resources.

We help clients:

• Request written continuation plans for access to healthcare, including therapy or medical device usage.
• Challenge severance packages that cut off essential services, especially if they were part of your ADA-mandated accommodation.
• Ensure proper access to HR systems post-exit, like benefits portals or FMLA records.

Just because you’re leaving doesn’t mean your support should be cut off overnight.

Negotiating Fair Treatment, Without Feeling Ashamed to Ask

Too many people hesitate to speak up after a layoff, especially when disability is involved. But asking for fair treatment is not “making it about your condition”, it’s making sure your transition out is as respectful as your contributions in. And the sooner we review your severance terms, the more control you have.

If shame, confusion, or fear are holding you back from asking questions, let us help. We approach your situation with clarity and care, never judgment.

When to Call Out Discrimination, Loud and Clear

You don’t have to settle for a severance package that buries your story or minimizes your rights. If the deal on the table feels like it’s punishing you for having a condition, or if you’re being treated differently from others during layoffs, it may be time to speak up.

Telltale Signs Your Severance Deal Violates the ADA

Certain red flags show up again and again in discriminatory layoffs:

• You’re the only person let go after requesting accommodations. This is one of the clearest signs of retaliation. If others in your department were retained, and you weren’t given a reason beyond “restructuring,” the ADA may apply.
• Your severance is significantly less generous than coworkers’. If this comes without explanation and your job performance matches theirs, we investigate further.
• The timing of your layoff follows a disability disclosure or medical leave. If you were in the middle of using FMLA or receiving ADA accommodations, the optics (and legality) of your layoff are questionable.

Our role is to help you identify whether these signs point to illegal conduct, and if so, build a case that gives you options.

Fighting Clauses That Penalize You for Your Condition

If your severance agreement includes language that restricts your ability to speak out, file claims, or access future accommodations, that’s a serious issue. These clauses can affect more than this job, they can follow you into your next role if not properly addressed.

We look out for:

• General releases that wipe out your ability to challenge ADA violations.
• Waivers that aren’t clearly explained or voluntarily agreed to. These may not hold up under the Older Workers Benefit Protection Act (OWBPA), especially if you’re over 40.
• Conditions that threaten benefits if you pursue legal action. Retaliatory clauses can violate both state and federal anti-discrimination law.

You don’t have to sign a deal that silences you. There are ways to revise, or reject it.

Legal Steps If You Suspect a Rights Violation

If you believe your layoff or severance package violates your disability rights, we can help you act quickly. Timing matters. Some claims under the ADA and New York State Human Rights Law have filing windows as short as 180 days.

Our business transaction lawyers will guide you through the right next step:

• Filing a charge with the EEOC or NYS Division of Human Rights
• Requesting negotiation or revision of a severance agreement
• Preserving documents that support your case, from performance reviews to accommodation requests

You don’t have to figure this out alone. That’s what we’re here for.

Call the Team That Respects What You’re Up Against

No one should have to choose between protecting their rights and accepting the money they need to survive. When disability and layoffs intersect, the stakes are higher, and your severance needs to reflect that.

At Horn Wright, LLP, our team supports New York workers navigating these exact situations. We review every word, push for what’s fair, and stand with you if things cross the legal line.

Looking for a nationally recognized firm that takes your rights seriously? Call Horn Wright, LLP, today to protect your exit, and your dignity.