By Jaleel Menifee
On March 4, 2025, the New York State Senate passed Senate Bill S.372, known as the “No Severance Ultimatums Act,” marking a significant advancement in employee rights. This pioneering legislation mandates that employers provide all employees—regardless of age—with a minimum of 21 business days to review severance agreements, a non-waivable seven-day revocation period post-signing, and a clear notification of their right to consult legal counsel before signing. The bill, now under consideration in the Assembly as A.6480, aims to ensure that severance agreements are entered into voluntarily and with full understanding.
Historically, such protections were limited to employees aged 40 and over under the federal Older Workers Benefit Protection Act (OWBPA). New York’s proposed Act extends these safeguards to all employees, addressing concerns that some employers may pressure individuals into hastily signing severance agreements without adequate time for consideration or legal consultation. Notably, the Act specifies a 21-business-day review period, offering more time than the OWBPA's 21-calendar-day requirement, and applies to all severance agreements, not just those waiving age discrimination claims.
While the New York State Senate has passed the bill, the bill still needs to be approved by the New York State Assembly and signed into law by the Governor, Kathy Hochul. If enacted, however, the No Severance Ultimatums Act will take immediate effect, rendering any non-compliant severance agreements void and unenforceable. Employers will need to revise their severance practices promptly, incorporating the mandated review and revocation periods and ensuring clear communication of employees' rights to legal counsel. Ultimately, this legislation aligns with New York’s broader efforts to promote transparency and fairness in employment practices.
At Outside Legal Counsel LLP, we specialize in guiding businesses through complex employment law landscapes. Our team is prepared to assist employers in updating their severance policies and agreements to comply with the forthcoming legal requirements, if necessary. Proactive adaptation to these changes is crucial to maintain compliance and uphold fair employment standards.
#Employment Law
This is attorney advertising.
Disclaimer: Nothing on this website is or should be construed as legal advice. An attorney-client relationship does not exist with our firm unless a signed retainer agreement is executed, and we do not offer legal advice through this site or any of the content located on it. For legal advice for your particular circumstances, please contact us directly.
