On March 4, 2025, the New York state Senate passed S.372, the “No Severance Ultimatums Act” a first of its kind legislation which, if enacted, will require New York employers to:
- provide a minimum 21business days for employees to review severance agreements (which is waivable by the employee), and a nonwaivable seven-day revocation period after signing, and
- notify employees of their right to consult with an attorney before signing the agreement
These protections will apply to all severance agreements except those covered by collective bargaining agreements. This bill has now moved to the New York State Assembly (A.6480).
Difference from Existing Law
Under existing federal law, the Older Workers Benefit Protection Act (OWBPA) mandates that employers seeking a release of claims under the federal Age Discrimination in Employment Act (ADEA) for employees ages 40 years or older must provide 21 days to review the agreement (or 45 days for group layoffs), and a seven (7) day nonwaivable revocation period after signing.
The No Severance Ultimatums Act will expand these protections to all New York employees regardless of age and to all severance agreements, seeking waiver of all claims, not just age discrimination claims.
The law aligns with a broader push for greater transparency and fairness in employment agreements, similar to recent trends limiting nondisclosure agreements in workplace settlements. It seeks to prevent employees from feeling pressured into quickly signing...
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