Separation Agreement
(Employment) (NY, NJ, and CT)


Summary

This template is a tri-state Separation Agreement (also known as a severance agreement) that an Employer operating in New York, New Jersey, and Connecticut may use when it terminates an Employee and seeks to obtain a general release of claims from the Employee. This template includes practical guidance, drafting notes, and alternate and optional clauses. This template is intended for private Employers and its language has been customized to comply with New York, New Jersey, Connecticut, and federal law. As a result, the text of this template differs from the non-jurisdictional Separation Agreement (Employment). This template is drafted to satisfy the requirements under the Older Workers Benefit Protection Act of 1990 (OWBPA) for ensuring that a release of claims constitutes a voluntary and knowing waiver of rights under the Age Discrimination in Employment Act of 1967 (ADEA). Although the ADEA only protects Employees age 40 or over, the template incorporates the OWBPA-compliant Employee review period, revocation period, and other terms as default provisions since many Employers prefer to use a single version of the template for administrative efficiency and such terms can help bolster the enforceability of a general release if challenged. However, when terminating the Employment of younger Employees, you may remove or shorten the review and revocation periods and omit the references to the OWBPA and ADEA. To obtain a valid waiver of ADEA claims when more than one Employee's Employment is being terminated, provide the additional OWBPA disclosures required as described in Alternate Section and its drafting note. For additional information on drafting separation agreements, see Separation Agreements: Drafting and Negotiation Tips (Pro-Employer) and Separation Agreements: Key Negotiating Issues (Pro-Employee). For other annotated separation agreements, see Separation Agreement and General Release (Individuals under 40) and Separation Agreement and General Release (Individuals 40 and over). For a full listing of key content covering departing employees, see Departing Employees Resource Kit.