BILL NUMBER: S372A
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 would set forth the title.
Section two would add a new section 215-d to the Labor Law which would:
prohibit severance ultimatums including requirements that employers
provide notification of the right for an employee or former employee to
consult an attorney regarding the agreement; provide at least 21 days
for an employee to review agreement; allow an employee to revoke an
agreement within 7 days of execution of the contract; and allow 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 three would establish the effective date.
 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
A print amendment clarifies that the consideration period or time to
review agreement is 21 calendar days and makes additional technical
changes to ensure the intent of the sponsor is effectuated.
 
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
seek to extend the protections from the OWEPA 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.