About the author: Kristan Peters-Hamlin represents clients in employment-related matters in New York and Connecticut at
Peters Hamlin LLC. A practicing attorney for more than 24 years, Ms. Peters-Hamlin frequently negotiates severance packages for executive-level clients.

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Receiving news of a layoff comes as a surprise to most people. Even when a work situation was not ideal, the discharged worker likely feels some shock. While you may wish to sign all documents, collect any money due to you, and move on quickly, it usually pays to take extra time before taking such action. Giving yourself time to recover from the shock and emotional upheaval may lead to several benefits.
Upon receiving notice of a layoff, the first few steps can be crucial. Under federal law, employers must give a laid-off worker age 40 or older 21 days to review and consider the severance agreement before accepting the severance document. Companies that have over a certain number of employeees are bound by this law, which is called the Older Workers Benefit Protection Act. Those companies and firms must allow all workers to take 21 days to consider their severance agreements and releases that the employers have offered. Accordingly, former employees should not feel rushed to sign a severance document, which frequently includes releases of the right to bring future legal action. Taking time to read over the agreement and discuss it with a spouse is reasonable. Moreover, an attorney can often negotiate a longer review period for the employee, which employers often agree to in order to avoid litigation or an age discrimination claim.

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Furthermore, the timing of when you sign the agreement can be important. For instance, delaying execution of the severance agreement until the end of the year can allow you to pay taxes on the severance in the following tax year (when your income may be lower).
As your employer shares the details of the situation, you may want to take notes. This will allow you to formulate questions, as well as prepare yourself should you later decide to seek the assistance of legal counsel. Moving cautiously before signing a severance agreement also gives you the opportunity to consult with an employment attorney who can evaluate the relevant documents and their impact on you. He or she can also represent you in severance negotiations.