Understanding Severance Pay in New York: Does it End if You Get a New Job?

If you have recently been laid off or terminated from your job in New York, you may be entitled to receive severance pay from your employer. However, if you are fortunate enough to secure a new job soon after, you may wonder whether your severance pay will be affected.

In this blog post, we will explore the question of whether severance pay ends if you get a new job in New York. We will provide you with the information you need to know about severance pay, including your rights as an employee and the legal implications of accepting a new job.

What is Severance Pay?

Severance pay is a form of compensation and/or benefits that employers may offer to employees who are laid off or terminated from their jobs. It is typically a lump sum payment that is intended to help employees cover their living expenses while they search for a new job.

In New York, there is no law that requires employers to offer severance pay to their employees. However, if an employer has a policy or practice of offering severance pay, they must follow that policy or practice consistently and fairly.

Does Severance Pay End if You Get a New Job?

The answer to this question depends on the terms of your severance agreement. Some employers may require employees to forfeit their severance pay if they accept a new job within a certain period of time. Other employers may allow employees to keep their severance pay regardless of whether they find a new job.

If you are unsure about the terms of your severance agreement, it is important to review it carefully and consult with an experienced employment law attorney. An attorney can help you understand your rights and obligations under the agreement and advise you on the best course of action.

Legal Implications of Accepting a New Job

If you do accept a new job while receiving severance pay, there may be legal implications to consider. For example, if your new job is in the same industry or field as your previous job, your former employer may argue that you are not entitled to receive severance pay because you have not suffered a loss of income.

Additionally, if you signed a non-compete agreement with your former employer, accepting a new job in the same industry or field could potentially violate that agreement. It is important to consult with an attorney to ensure that you are not violating any legal agreements or obligations.


Severance pay can provide much-needed financial support to employees who are laid off or terminated from their jobs. However, if you are considering accepting a new job while receiving severance pay, it is important to understand the terms of your agreement and any legal implications that may arise.

If you have any questions or concerns about severance pay in New York, please do not hesitate to contact Phillips & Associates, Attorneys at Law. Our experienced employment law attorneys can provide you with the guidance and support you need to protect your rights and interests.

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