Following a prolonged employment relationship in the New York construction industry, this case study examines how an NYC labor lawyer successfully recovered unpaid severance compensation through a civil action grounded in New York Labor Law Article 6 and contract principles. While severance pay is not statutorily mandated in New York, the law consistently enforces severance obligations when payment has been clearly promised through an employment agreement, employer handbook, or established company policy and has fully vested upon separation. This matter demonstrates how evidence-driven advocacy and strategic use of New York wage payment and wage supplement provisions can secure full financial recovery for an employee whose earned compensation was unlawfully withheld.
1. NYC Labor Lawyer | Client Background and Reason for Consultation
The client consulted an NYC labor lawyer after facing prolonged nonpayment of severance compensation following retirement from a large New York-based construction company. After more than fifteen years of continuous employment, the client reasonably expected payment under the employer’s written severance policy, which set forth a fixed calculation method tied to length of service and position. When repeated informal requests failed and no discretionary conditions remained outstanding, legal intervention became unavoidable.
Employment History and Post Retirement Dispute
The client had worked in a senior operational role for over a decade, contributing to major commercial construction projects throughout New York City.
Upon voluntary retirement, the employer expressly acknowledged that the client satisfied all conditions for severance eligibility and that the severance obligation had accrued in full at the time of separation.
Nevertheless, payment was repeatedly delayed on the stated basis of internal financial restructuring, and over time the unpaid severance amount, totaling approximately USD 180,000, caused significant financial strain and ongoing uncertainty.
2. NYC Labor Lawyer | Legal Framework for Severance Claims
An NYC labor lawyer evaluated the matter under New York Labor Law Article 6 and established contract based wage recovery principles. Although New York law does not require employers to provide severance pay as a matter of statute, courts routinely enforce severance obligations where the employer has made a definite promise and the employee’s right to payment has vested. In such circumstances, severance pay may qualify as a recoverable wage supplement rather than a discretionary benefit.
Enforceability of Severance under New York Law
Under New York Labor Law §190 and §198-c, separation pay and other wage supplements promised by an employer may be enforceable when the terms are sufficiently definite and the employee has satisfied all conditions precedent.
In addition, New York Labor Law §198 provides a civil remedy for the unlawful withholding of earned wages or wage supplements, including severance that has fully accrued.
The legal team demonstrated that the employer’s severance policy constituted a binding, non-discretionary promise and that the client’s entitlement had vested at retirement, distinguishing the claim from discretionary bonuses or conditional incentive compensation.
3. NYC Labor Lawyer | Litigation Strategy and Case Development
The NYC labor lawyer commenced a civil action in New York Supreme Court asserting claims for unpaid wage supplements under New York Labor Law Article 6 together with breach of contract causes of action. The litigation strategy focused on establishing that the severance obligation was fixed, vested, and acknowledged by the employer, leaving no lawful basis for continued nonpayment.
Evidence of Nonpayment and Financial Harm
Key evidence included internal severance policy documents, prior severance payment records for similarly situated employees, and written communications confirming both eligibility and the severance calculation.
The legal team further documented the client’s financial hardship resulting from the extended delay, reinforcing the equitable and statutory necessity of judicial intervention to compel payment of earned compensation.
4. NYC Labor Lawyer | Court Decision and Final Outcome
The court accepted the arguments advanced by the NYC labor lawyer and ruled in favor of the employee on all material issues. The court found that the severance pay constituted a vested wage supplement under New York Labor Law and that the employer’s failure to remit payment amounted to an unlawful withholding of earned compensation.
Full Recovery Judgment
The judgment ordered full payment of the unpaid severance together with prejudgment interest pursuant to New York CPLR §5001.
As a result, the client recovered the entire severance amount, bringing long-awaited financial relief and formal closure to the dispute while reaffirming that clearly promised and vested severance obligations are enforceable under New York law.
