[co-author: Adrienne Davis]*

The New York Legislature has passed a bill that would impose additional requirements on employers offering severance agreements to New York employees. The bill, colloquially titled the “No Severance Ultimatums Act” (the “Act”) now awaits Governor Kathy Hochul’s signature. Employers should begin to prepare for the potential changes that will accompany enactment.

No Severance Ultimatums Act

The Act adds a new Section 215-d to the New York Labor Law (“NYLL”) and prohibits so-called “coercive severance ultimatums.” Specifically, the Act requires that employers provide separating employees additional time and information before such employees release waivable claims. The Act would apply to all New York employees. Notably, the Act expressly includes governmental agencies in its definition of “employer.”

Under the Act, any employer offering a “severance agreement,” defined as an agreement offered upon separation of employment that requires the employee to release waivable claims against the employer, must notify the employee that:

• The employee has a right to consult an attorney about the agreement;
• The employee has at least twenty-one (21) calendar days to consider the agreement;
• The employee may revoke the agreement within seven (7) calendar days of signing;
• The agreement does not become effective and enforceable until after the revocation period expires; and
• The employee may make a knowing and voluntary choice to sign the agreement prior to the...

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