Note: an employer may also offer a New York separation agreement to get you to walk quietly, give up your right, take legal action, or prohibit you from talking about it badly. Separation agreements may be proposed out of fairness or because they are a common practice within an organization. Federal, New York State and New York do not impose employer compensation. Employers pay severance pay based on 3 factors: if it is due to an employment contract; for goodwill (i.e. .dem help employees fill the void in the next job); and general authorization to “buy”. The more a company fears a risk of liability, the more importance it attaches to the general release and in turn pays a higher severance pay. .