BILL NUMBER: S372
SPONSOR: GIANARIS
 
TITLE OF BILL:
An act to amend the labor law, in relation to establishing the "no
severance ultimatums act"
 
PURPOSE:
To ensure that all New Yorkers are provided protections when reviewing
severance agreements, including providing ample time to review such
agreements.
 
SUMMARY OF PROVISIONS:
Section one of the bill sets forth the title, the "No Severance Ultima-
tums Act".
Section two of the bill adds a new § 215-d to the labor law to prohibit
coercive severance ultimatums. This includes requiring that employers
notify an employee or former employee of their right to consult an
attorney regarding the agreement; provides at least 21 days for an
employee to review such agreement; allows an employee to revoke an
agreement within 7 days of execution of the contract; and allows an
agreement to be signed in less than 21 days so long as it is knowingly
and voluntarily done, and without fraud on the part of the employer.
Section two also declares that any severance agreement shall be deemed
void and unenforceable if it violates the provisions of this bill. It
also clarifies that the bill shall not prevent any law or regulation
from providing greater protections to employees than the protections
contained herein. The provisions of this section do not apply to sever-
ance agreements negotiated pursuant to a collective bargaining agree-
ment.
Section three of the bill sets the effective date.
 
EXISTING LAW:
Currently, only those over the age of 40 are provided any statutory
protections when reviewing severance agreements in accordance with
federal law.
 
JUSTIFICATION:
Under the federal Older Workers Benefit Protection Act (OWBPA), part of
the federal Age Discrimination in Employment Act, an employer is
required to provide a 21-day attorney review period in any severance
agreement offered to an employee who is age 40 or older. The agreement
must also contain a 7-day revocation period. However, there are current-
ly no statutory protections, in either New York State or federal law,
for those under the age of 40 being offered severance agreements. In
these instances, employers can force an employee or former employee into
considering an agreement on the spot, with no additional time to review
it themselves or with legal counsel.
Several other states have sought to address this gap in policy, though
none as comprehensively as in this proposal. In 2020, Illinois provides
21-day consideration periods with a 7-day revocation period but only if
the agreement contains promises of confidentiality related to alleged
unlawful employment practices. More recently, California implemented a
5-day minimum severance consideration period to workers. This bill would
be the most progressive proposal in the country, instead seeking to
extend the protections from the OWBPA to all employees of the state,
regardless of age.
 
LEGISLATIVE HISTORY:
2024: S7609-B (Gianaris) PASSED SENATE / A8986-A (Bronson) died in labor
2023: S7609 (Gianaris) died in Labor / A8986 (Joyner) died in labor
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately.