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Severance Entitlement & Negotiation Report.

Prepared for
Sarah K.
Role & tenure
Product Manager · 4 years
Annual base salary
$145,000
State of employment
New York
Severance offered
$11,154 (4 weeks)
Layoff context
Group layoff. 200+ employees.
Report delivered
April 28, 2026
Reviewed by
TheyOweYou Team

This is a sample report based on a representative scenario. Names, employer details, and exact dollar amounts in real reports are calibrated to the buyer's specific inputs. This document is educational and does not constitute legal advice. For advice tailored to your situation, consult a qualified employment attorney.

Executive Summary

Three things you may be entitled to that the offer does not mention.

Estimated additional entitlement $44,615
Section 01

Federal back-pay rights. The WARN Act.

The federal Worker Adjustment and Retraining Notification Act (WARN) requires employers with 100 or more employees to give 60 calendar days of written notice before a mass layoff. Based on what you reported, your layoff almost certainly meets the threshold.

Eligibility threshold (your case)

What you may be owed

If the WARN Act applies and your employer failed to provide 60 days of advance notice, federal law requires them to pay you for each day of notice they missed. The pay calculation is based on your higher-of: average wage over the last 3 years, or your last rate. The pay also includes the value of your benefits during that 60-day window.

WARN Act Calculation. Your scenario.
Daily base pay (salary $145,000 ÷ 260 working days)$557.69
Working days missed (60 days notice not given)30 days
Estimated WARN pay-in-lieu (base salary only)$16,731
Additional health benefits value (estimated)+$2,400
Estimated WARN-eligible recovery$19,131
Action item. Confirm with HR that the company filed a WARN notice with your state's labor department. New York's WARN Act actually requires 90 days of notice (not 60), so your recovery may be larger than the federal estimate. We've used the federal floor in this report.
Section 02

Real severance range. What your role and tenure command.

Federal law mandates zero severance. It is entirely a matter of employer policy or negotiation. For Senior Product Managers with your tenure at mid-size SaaS companies, the 2026 benchmark range is significantly above the offer on the table.

Severance Range. Your role-tier benchmark, 2026.
Floor (industry baseline, 2 weeks/year)8 weeks. $22,308.
Median (mid-size SaaS PM, 4 yrs tenure)11 weeks. $30,673.
Ceiling (top quartile, similar layoff context)16 weeks. $44,615.
Their offer4 weeks. $11,154.

What moves the ceiling higher

Realistic ask

Based on your inputs, our recommended counter-offer is 11 weeks of base pay ($30,673). This is the median, defensible without needing to escalate. We have included higher-asks in the negotiation script (Section 07) for use if your initial counter is accepted without pushback.

Section 03

State PTO entitlement. New York Labor Law § 198-c.

New York is one of twelve US states that legally require employers to pay out accrued, unused vacation upon separation. Your offer letter does not mention this. You are owed the cash value regardless of what the separation agreement says.

PTO Payout. Your scenario.
Unused vacation (you reported 15 days)15 days
Daily rate ($145,000 ÷ 260 working days)$557.69
Cash payout owed under NY Labor Law$8,365
Watch for. Some employers attempt to define PTO as "use-it-or-lose-it" in the employee handbook to avoid payout. New York courts have repeatedly held that accrued PTO is wages, not a benefit, and cannot be forfeited. Your PTO payout is not part of severance and is not negotiable. They owe it.
Section 04

Unemployment benefits. Weekly amount & timing.

You are eligible for New York State unemployment benefits as a laid-off worker. Based on your salary, you will hit the maximum weekly benefit rate.

NY Unemployment Estimate. Your scenario.
Maximum weekly benefit (NY 2026 cap)$504
Maximum benefit duration26 weeks
Total potential benefits$13,104
Effective monthly equivalent$2,184/mo

Timing with severance

New York treats severance as wages. Your unemployment benefits do not start until your severance period ends. If you accept 4 weeks of severance, your first unemployment check arrives roughly 5 weeks after your last day. If you negotiate 11 weeks, expect your first check around week 12.

File your initial unemployment claim within the first week regardless of severance timing. The claim establishes your benefit year and the clock starts running. Filing late narrows your benefit window.

Section 05

Health coverage. COBRA versus the alternative.

Your employer-sponsored health plan terminates either on your last day or the end of the month, depending on the plan. After that, you have three viable options. Most laid-off workers default to COBRA without realizing the marketplace is often dramatically cheaper.

Health Coverage Options. NY, 2026.
COBRA continuation (full premium plus 2% admin)~$780/mo
NY State of Health marketplace silver plan~$420/mo
Spouse's employer plan (if applicable)Varies
Estimated savings switching to marketplace$360/mo

Negotiation lever

Many separation agreements offer to subsidize 3 to 6 months of COBRA. This is essentially free money for the employer (they have already absorbed your headcount) but real value for you. Ask for 6 months of COBRA premium subsidy on top of your severance. The script in Section 07 includes the language.

If you take the subsidy and then switch to a marketplace plan partway through, you may be able to keep the unused subsidy as cash, depending on how the agreement is worded. Confirm this with your HR contact before signing.

Section 06

Agreement red flags. Eight clauses to review before signing.

Read these eight clauses carefully. Each one has cost real workers real money. The recommended action for your specific offer is in bold under each.

i.

Non-disparagement scope

If the clause is mutual, it is fine. If it only restricts you, push back. Your offer: one-sided. Ask to make it mutual.

ii.

Arbitration of future disputes

Standard. Limits your ability to litigate. Your offer: standard language. Acceptable.

iii.

Non-compete clause

New York limits non-competes for most workers. If yours has one, push back hard. Your offer: 12-month non-compete. Recommend striking entirely or limiting to direct competitors named by company.

iv.

Non-solicitation of employees

Standard at 6 to 12 months. Pushback rarely succeeds. Your offer: 12 months. Acceptable.

v.

Bonus and commission claw-back

Watch for language disqualifying you from bonuses or commissions earned but not paid. This is real money. Your offer: agreement is silent on Q1 2026 bonus. Ask explicitly for confirmation it will be paid.

vi.

Equity acceleration

If you have unvested options or RSUs, ask for at least 6 months of acceleration. Standard for senior roles in tech. Your offer: no acceleration. Recommend asking for 12 months given group layoff context.

vii.

Reference and rehire commitments

Get a written commitment that the company will provide a neutral reference and confirm rehire eligibility. Your offer: silent. Ask for written confirmation in the side letter.

viii.

Release of unknown claims

Standard. Means you cannot sue for things you do not yet know about. Your offer: standard. Acceptable.

Section 07

Negotiation script. Word for word.

This is the highest-value section in this report. The script below is calibrated to your specific situation. The numbers are your numbers. Use it verbatim, or as a base for your own version.

Stage 1. Buy yourself time.

Email to send within 24 hours of receiving the offer

Send this from your personal email, addressed to the HR contact who delivered the news. Do not reply from your work email if you still have access. Keep the tone calm and professional.

Hi [HR contact name], thank you for the time today. I appreciate the offer and the support you've outlined. I'd like to take the time afforded under the agreement (21 days for ADEA review) to fully consider it. I'll plan to come back to you with any questions or proposed adjustments by [date 7 to 14 days out]. In the meantime, please confirm in writing the timeline for the offer's expiration, the status of my unused PTO, and whether the agreement has been filed with NY Department of Labor under WARN. Thanks again.

Stage 2. The counter-offer.

Phone call or video meeting, scheduled for day 7 to 10

Open warmly. State your counter clearly. Anchor your number. Then stop talking.

[HR contact], thanks for taking the time. I've reviewed the offer carefully and want to share where I've landed. Given my four years of tenure, my role on the [project name] launch, and the context of the broader layoff, the offer at four weeks is well below the typical range for senior PMs at my tenure. Based on the benchmarks I've gathered, I'd like to propose 11 weeks of base pay, plus 6 months of COBRA premium subsidy, plus full payout of my 15 unused PTO days, plus written confirmation that my Q1 bonus will be paid as earned. I'm willing to sign promptly once that's in place.

After delivering the ask, stop talking. Let the silence do the work. Most HR contacts will say "I'll need to take this to leadership and come back to you." That is the response you want.

Stage 3. When they push back.

Common HR responses, and how to handle each

"This is the standard package and we can't deviate."

I understand standard packages are designed for the typical case. My situation has a few specifics that warrant a closer look — particularly the WARN Act timing and the unused PTO under New York law, which are separate from severance. Could we walk through those together?

"We don't negotiate severance."

I appreciate that's the policy as you've understood it. I'd ask that you escalate the request to leadership, given the size of the layoff and the legal complexity. I'm happy to wait for their response.

"The offer expires Friday."

Thanks for letting me know. As I noted, federal law (the OWBPA, since I'm 38) requires me to be given at least 21 days to review. I want to use that time to give your counter-proposal the consideration it deserves. I'll be back to you well within that window.

Stage 4. Closing.

When you reach agreement

Get every adjustment in writing in a revised separation agreement, not in a side letter. Confirm via email what was agreed before you sign. The exact email:

Hi [HR contact], confirming what we discussed today: the revised severance is 11 weeks of base pay ($30,673), the company will subsidize COBRA premiums for 6 months (estimated $4,680 value), my 15 unused PTO days will be paid out in full ($8,365), and my Q1 bonus will be paid as earned per the bonus plan. The revised agreement will reflect all four items. Please send the updated draft when ready. Thanks for working through this.

Section 08

What to do this week. In order.

  1. Today. Send the Stage 1 email. Time-buy 7 to 14 days.
  2. Today. File for unemployment benefits with NY Department of Labor. Filing immediately establishes your benefit year. Severance does not change this.
  3. This week. Confirm in writing whether your employer filed a WARN notice with NY DOL. If not, that is leverage in Stage 2.
  4. This week. Compare COBRA premium against NY State of Health marketplace plans for your household. Decision can wait until after negotiation.
  5. By day 7. Schedule the Stage 2 call. Practice the script out loud at least three times before the call.
  6. Before signing. Walk through the eight red-flag clauses one more time. Confirm every adjustment is in writing.
If something on this report does not match your situation, reply to your delivery email with the discrepancy and we will revise within 24 hours. Every report is reviewed by a human before delivery. If we missed something, we will make it right.

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