Severance Review and Revocation Periods
How long do I have to review and revoke a severance agreement in New York?
If your severance agreement includes a waiver of age discrimination claims, federal law provides specific review and revocation periods. If you are 40 or older, you must have at least 21 days to consider the agreement before signing (45 days if you are being laid off as part of a group exit incentive programme). After you sign, you have 7 additional days to revoke your consent. These timelines are mandatory and cannot be waived or shortened by your employer. If age waivers are not involved, the employer does not have to provide a formal review period, though most do as a practical matter. Either way, take time to read carefully and seek legal review if anything is unclear.
The ADEA 21-Day and 45-Day Rule
The Age Discrimination in Employment Act (ADEA) protects workers 40 and older from discrimination based on age. When an employer asks you to waive your rights under the ADEA as part of severance, federal law mandates a minimum review period. For an individual termination or severance, you must receive at least 21 days to consider the agreement before you are expected to sign.
If you are being terminated as part of a group layoff, exit incentive programme, or workforce reduction affecting multiple employees, the review period extends to 45 days. This longer period recognizes that group terminations may involve more complex circumstances and higher stakes.
The 7-Day Revocation Period
After you sign an agreement that waives ADEA claims, you have 7 calendar days to change your mind. This 7-day window cannot be shortened or eliminated; your employer cannot ask you to waive it. Even if you initially decide the severance is acceptable, you retain the right to revoke your consent within that period by notifying your employer in writing.
The 7-day period is absolute. If day 7 falls on a weekend or holiday, you can revoke on the next business day. The key point: you do not forfeit this right, and any agreement attempting to do so is void.
How These Periods Apply When Age Waivers Are Involved
The 21/7 (or 45/7) structure applies only when your severance agreement includes a waiver of age discrimination claims. Even if other claims are waived—discrimination based on race, gender, disability, or retaliation—but the ADEA waiver is not included, the 21- and 7-day requirements do not apply.
When they do apply, the employer must provide them in writing, clearly and conspicuously. Many employers include this in a cover letter or separate section labeled "Acknowledgment of Review Rights." If it is not clearly stated, that is a red flag.
What If Age Waivers Are Not Involved
Not all severance agreements include age discrimination waivers. If your employer offers severance but does not ask you to waive ADEA claims (for example, if you are younger than 40 or if the waiver is simply omitted), the 21-day and 7-day periods do not apply as a legal requirement.
However, most employers provide some review period as a matter of practice or policy. Always ask how long you have to review the agreement before signing. If the employer pressures you to sign immediately, that pressure is a legitimate reason to seek independent legal review before deciding.
What Counts as "Revoking" Your Agreement
To revoke within the 7-day period, you must notify your employer in writing. Email, letter, or any clear written communication stating that you are revoking your consent suffices. Do not simply tell a manager verbally and assume it is effective. Put it in writing, keep a copy for yourself, and consider sending it via email with a read receipt or certified mail so you have proof.
After you revoke, the agreement is void. You are not bound by the severance terms, and you do not receive the severance payment. However, you also retain all your legal claims. That trade-off—keeping potential claims but losing the severance—is yours to make within the 7-day window.
When it is worth a call
- You are offered a severance agreement that includes an age discrimination waiver and want to confirm your review and revocation rights before time expires.
- You signed a severance agreement and are within the 7-day revocation period but have doubts and want to understand the consequences of revoking.
- You signed a severance agreement but were never told about a 21-day review period or 7-day revocation period, and you want to know if the agreement is valid.
Common questions
- Does the 21-day review period mean I cannot sign before 21 days have passed?
- The 21-day period is a minimum you must be given. You can sign earlier if you choose; the law does not prevent that. The requirement is that the employer give you the opportunity to take 21 days. Many employees sign after a few days of review. The period exists to ensure you have time if you need it.
- If I am in a group layoff, why is the review period 45 days instead of 21 days?
- Group layoffs and exit incentive programmes are typically more complex. Multiple positions are being eliminated, and the decisions affecting each employee may be less transparent. The longer period recognizes this complexity and gives employees more time to understand their situation and consider their options.
- Can I revoke my agreement after the 7-day period has passed?
- No. The 7-day revocation window is strictly limited. After 7 days, the agreement is final and binding. This is why it is crucial to use the 7-day period wisely. If you have doubts on day 6, do not wait—revoke in writing and then take time to think about whether you truly want severance.
- What if the employer never told me about the 21-day or 7-day requirements?
- If the employer failed to disclose these rights as required by law, you may have a basis to challenge the agreement. An agreement that violates ADEA waiver requirements is typically unenforceable. If you signed without being given the required information and timelines, consult a lawyer about your options.
Talk it through with Mitch
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