Making negative statements about the company

Posting unfavorable opinions about the company on social media

Talking about workplace misconduct, even in general terms

Sharing your experience with future employers, coworkers, or the press

To protect reputation — Companies want to avoid bad press or negative reviews, especially if there were tensions during your time of employment or termination.

To discourage lawsuits — If you’re not allowed to speak out, you’re less likely to bring public complaints or take legal action.

To control the narrative — Some employers may want to silence former employees from speaking to the media, regulators, or other workers.

As part of severance negotiations — Employers often tie these clauses to severance payments, putting workers in a difficult spot: either stay quiet or lose financial support.

Are Non-Disparagement Clauses Legal in New Jersey?

Silences you from talking about unlawful conduct

Prevents you from filing a complaint with the <a href="https://www.njoag.gov/about/divisions-and-offices/division-on-civil-rights-home/">New Jersey Division on Civil Rights (DCR)</a>

Bars you from cooperating in an investigation

Stops you from testifying in a legal case involving workplace misconduct

How Non-Disparagement Clauses Are Different From NDAs

NDAs typically prevent you from sharing confidential company information — like trade secrets, client lists, or internal policies.

Non-disparagement clauses go further by barring negative statements, even if they’re true or based on personal experience.

When a Non-Disparagement Clause Might Be Unfair

Prevent you from speaking honestly to future employers about why you left

Restrict your ability to warn others about a toxic or discriminatory work culture

Force you to remain silent about harassment, bullying, or retaliation

Come with the threat of losing severance or references if you don’t agree

What to Look for in a Non-Disparagement Clause

Prohibits you from making “any negative or disparaging statements”

Covers a wide range of people — including executives, board members, or affiliated businesses

Restricts your ability to speak about “company culture,” “managerial conduct,” or “workplace issues”

Includes vague legal threats or penalties for violation

Talking to coworkers about pay, safety, or treatment

Reporting concerns to the public or government agencies

Seeking legal advice or speaking to an attorney

Review the language for legality and fairness

Preserve your rights while still accepting severance

Determine if your experience qualifies for legal action under NJLAD

Non-Disparagement Clauses: Should NJ Employees Agree?

What’s Usually Included in a Severance Package?

Severance pay: A lump sum or continuation of salary for a set period.

Benefits continuation: Extended health insurance (sometimes paid by the company) or help with <a href="https://www.dol.gov/general/topic/health-plans/cobra">COBRA </a>costs.

Stock options or restricted stock: In tech, this can be one of the biggest parts of your compensation. Companies may accelerate vesting or extend the time you can exercise options.

Outplacement services: Help with resume writing, job searching, or career coaching.

Non-compete or non-solicitation clauses: Restrictions on where you can work or whom you can recruit after you leave.

Confidentiality and non-disparagement: Promises not to reveal company secrets or badmouth the company publicly.

Volatility: Startups pivot, get acquired, or shut down quickly, often leading to layoffs.

Equity compensation: Stock options and grants can make up a significant part of total pay.

Non-competes: Tech professionals are more likely to face restrictions that could limit future opportunities.

Specialized skills: In-demand workers often have leverage to negotiate better terms.

Tips for Negotiating Tech Severance in NJ

Stay professional — Even if you’re frustrated or hurt, keep your communications respectful. This helps preserve goodwill and your negotiating power.

Ask for everything in writing — Verbal promises about pay, equity, or references should be put into the agreement.

Think beyond pay — Consider what matters most to you: health coverage, equity, job search support, or future work restrictions.

Don’t go it alone — An severance agreement lawyer in New Jersey can help you spot red flags, identify negotiation points, and protect your interests.

Understand your unemployment rights — Severance payments structured in certain ways might delay or affect your eligibility for unemployment benefits. Know how your package interacts with those benefits.

What If You’re Pressured to Sign Right Away?

It’s reasonable to request time to review the agreement.

Under federal law, workers over 40 offered severance tied to a release of age discrimination claims must get at least 21 days to consider it.

If you feel rushed or threatened, it’s a red flag. Take a step back and seek help.

You suspect you were laid off for a discriminatory or retaliatory reason.

Your agreement has complex stock or bonus provisions.

You’re being asked to sign a broad non-compete.

The agreement waives important rights without clear explanation.

You’re uncomfortable negotiating alone.

Make sure non-disparagement clauses don’t stop you from giving references or accurately describing your experience.

Clarify what your company will say to future employers. Will they confirm your dates and position, or give more details?

Know how restrictive covenants might limit your job search.

Negotiating Severance Packages for NJ Tech Professionals

Is Severance Pay Legally Required in New Jersey?

Employment Contracts or Company Policies – If your offer letter, union agreement, or employee handbook promises severance, your employer must honor it.

WARN Act Requirements – Under the federal <a href="https://www.dol.gov/agencies/eta/layoffs/warn">Worker Adjustment and Retraining Notification (WARN)</a> Act and New Jersey’s own <a href="https://www.nj.gov/labor/assets/PDFs/WARN/LayoffNotificationForm2_31208REVDD6.pdf">Millville Dallas Airmotive Plant Job Loss Notification</a> Act, employers making mass layoffs or plant closings may have to provide advance notice or pay in lieu of notice, which can effectively operate like severance.

Discrimination or Retaliation Claims – Employers may offer severance to settle potential legal claims if your firing could be seen as discriminatory or retaliatory.

What Is the WARN Act and When Does It Require Severance?

How Is Severance Pay Typically Calculated?

Length of service: A common formula is one or two weeks’ pay per year of service.

Position level: Executives often receive more generous packages than entry-level staff.

Company policies: Some companies have written severance plans that lay out specific amounts.

Negotiated settlements: Employers may offer more severance if there’s a risk of a wrongful termination claim.

What Other Benefits Might Be Part of a Severance Package?

Continuation of health insurance coverage (often under <a href="https://www.dol.gov/general/topic/health-plans/cobra#:~:text=The%20Consolidated%20Omnibus%20Budget%20Reconciliation,and%20plans%20to%20provide%20notice.">COBRA</a>)

Outplacement assistance (career counseling, resume help)

Non-disparagement clauses (prohibiting badmouthing on both sides)

What Should You Watch for Before Signing a Severance Agreement?

Broad release of claims: Many agreements require you to waive your right to sue for discrimination, harassment, or wrongful termination.

Non-compete clauses: Some agreements extend or impose new restrictions on your ability to work for competitors.

Confidentiality provisions: Agreements often prohibit you from talking about the terms or even that you received severance.

Repayment clauses: Some employers reserve the right to reclaim severance if you violate their rules later.

Can You Negotiate Severance in New Jersey?

Have worked at the company for a long time

Were terminated suddenly or without clear cause

Believe you were targeted for an unlawful reason (discrimination, retaliation, whistleblowing)

Are asked to sign a non-compete, broad release, or confidentiality agreement

Adjusting or removing restrictive clauses

How Severance Affects Unemployment Benefits

Lump sum severance typically does not delay unemployment benefits.

Salary continuation agreements (where you’re kept on payroll) may delay eligibility until the continuation period ends.

Take your time Don’t feel pressured to sign on the spot. Employers often give at least a few days or even longer for you to review.

Ask questions If something is unclear, ask for clarification. It’s better to understand now than regret it later.

Review the math Make sure the amount aligns with your years of service, company policies, or WARN Act requirements.

Get a second opinion If you’re unsure about the terms, consider consulting a severance agreement lawyer in New Jersey who can review the agreement and help you understand the impact.

Retaliation Protections During Severance Negotiations

How Much Severance Pay Are You Really Entitled To in NJ?

File a discrimination or harassment claim

1. The Agreement Was Signed Under Pressure

2. The Language Is Too Vague or Confusing

3. You’re Suing for Something That Happened After You Signed

4. The Agreement Tries to Waive Rights It Can’t

Non-disparagement clauses: Prevent you from saying anything negative about the company. Sometimes mutual, sometimes not.

Confidentiality provisions: Limit what you can share about the agreement itself or your employment experience.

Non-compete or non-solicit language: Restrict your ability to work in your industry after you leave.

Broad release of claims: May include claims you haven’t even thought of or discussed.

You may be entitled to more. Sometimes employers offer less than what you’re legally owed in wages, unused vacation, or final paycheck.

You may have a valid claim. If you were fired due to discrimination, retaliation, or another unlawful reason, you may be giving up the right to real compensation.

You may be signing restrictions. That “standard” agreement could limit your ability to work, speak out, or challenge future mistreatment.

Can You Still Sue After Signing a Severance Agreement?

Whether unused vacation or PTO will be paid out

Health insurance continuation (<a href="https://www.dol.gov/general/topic/health-plans/cobra">COBRA</a>)

A release of claims (waiving your right to sue)

1. A Full Waiver of Legal Claims Without Understanding What You're Giving Up

Discrimination (based on race, gender, disability, etc.)

<a href="https://www.dol.gov/agencies/whd/fmla">Family and Medical Leave Act (FMLA)</a> violations

2. Overly Restrictive Non-Compete Agreements

Will I be locked out of my industry or forced to move to stay employed?

Is the language specific — or is it vague and open-ended?

3. Gag Orders or Broad Confidentiality Clauses

4. Agreeing Not to Sue for Things That Haven’t Happened Yet

5. Unpaid Wages or Benefits Being Used as Leverage

“We need this back by the end of the day.”

Why You Should Talk to a Severance Lawyer in NJ

What Should You Never Agree to in a Severance Agreement?

A lump sum payment or continued salary for a set period

Health insurance continuation (sometimes through <a href="https://www.dol.gov/general/topic/health-plans/cobra">COBRA</a> or other subsidies)

Non-disclosure or non-disparagement clauses

Are Employers Required to Offer Severance in New Jersey?

It’s promised in an employment contract

It’s part of a union agreement or company policy

It’s required due to mass layoffs under specific statutes (like the <a href="https://www.nj.gov/labor/employer-services/warn/">NJ WARN Act</a>)

Discrimination (race, sex, age, disability, etc.)

Wage and hour claims (like unpaid overtime)

Anything that happened during your employment

Common Clauses That Deserve a Second Look

3. Non-Compete or Non-Solicitation Agreements

Why You Should Talk to a Lawyer Before Signing

You believe you were fired for an illegal reason

You’ve experienced discrimination or harassment

You filed a complaint or whistleblower report before termination

You’re being asked to sign quickly, with no time to review

The agreement includes confusing or restrictive clauses

You’re being pressured not to consult an attorney

Revoke the agreement (in some cases, such as age-related claims, federal law allows a 7-day revocation window)

Challenge the agreement’s enforceability, especially if it was signed under pressure or without full understanding

Pursue legal claims, if the agreement doesn’t cover them or was improperly handled

Ask questions if you don’t understand something

Consult a lawyer, especially if something doesn’t feel right

Know what you’re giving up before you agree to anything

Employment Law Insights & Resources

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