BILL NUMBER: S8966
SPONSOR: RAMOS
 
TITLE OF BILL:
An act to amend the labor law, in relation to required notices for
employees receiving resignation solicitations
 
PURPOSE:
Relates to required notices for employees receiving resignation solic-
itations
 
SUMMARY OF PROVISIONS:
Sec 219-e(1): Defines a resignation solicitation. This would include
situations where an employer requests, demands, encourages or offers
that an employee resigns, or a resignation in lieu of termination. For
example, if an employer sent an email to an employee stating that they
violated a rule and must resign or be terminated, they must send the
form. This section would also trigger if the employer, for example,
directly told the employee to resign without an alternative, or engaged
in conduct evincing an intent to encourage them to resign. Further, if
the employee asks the employer to resign, but that resignation was in
response to an encouragement, request, demand or resignation lieu of
termination then this section would be triggered. To cover instances
where employers terminate an employee and then offer them to resign in
order to pressure an employee into resigning and thus triggering repay-
ment obligations for bonuses, tuition, and other incentives, if the
employee has already been terminated, a resignation solicitation shall
be deemed any request made by either the employer, their agent or some-
one on behalf of them or the employee, their agent, or someone on behalf
of them, so long as the employer agrees to change the resig nation
request. For example, if an employee is terminated and then, following
termination, the employee asks the employer that their termination be
changed to a resignation, this section shall be triggered and the
employer must provide them with the form.
Sec 219(2): Prohibits the acceptance of a resignation by an employer
before the form described in this section is provided to the employee.
Describes what must be on the form that the employer must provide to the
employee. This form is intended to apprise the employee of the conse-
quences of resigning, and should be particularly useful for employees
who expect difficulty finding a job post-employment and who would be
eligible for unemployment benefits or who may be adversely affected as a
result of their immigration status.
219(3): Requires that the form have a section for the date that the
folui was sent, a web link or phone number to request the contents in a
different language, and a complaint contact number for the department.
219(4): The fact that an employee is in receipt of the form shall not be
considered a resignation. In other words, there must be some additional
and explicit action by the employee in order for a resignation to be
effective.
219(5): The form can be provided electronically or in person.
219(6): The employer must retain a copy of the form and the medium it
was sent in (physical, digital, etc.) for a period of three years.
219(7): A form shall only be considered received when it is provided
independent of any other documents and as soon as practicable following
the resignation solicitation being made. For example, this document
cannot be sent alongside multiple other forms. The manner in which it is
sent should be reasonably calculated to have the employee receive it and
review it.
219(8): An employer shall, under penalty of perjury, submit proof of a
copy of this form to the department where they contest unemployment.
219(9): Failing to provide the form shall make it so an employer
contesting unemployment insurance eligibility cannot use the fact that
the employee resigned to bar them from receiving such benefits.
Further, if it is not received by the employee, then the resignation
shall be deemed an involuntary quit and a non-disqualifying separation.
219(10): If the form is not provided within certain timeframes
prescribed by the bill, then the employer shall be barred from using the
form in any subsequent proceeding related to that separation.
219(11): Provides for penalties.
219(12): Voids any contractual provisions augmenting or eliminating
rights related to this section.
 
JUSTIFICATION:
Employers, particularly large ones, have something that employees don't
have: on-demand attorneys and HR professionals who know the precise
effect of particular actions made by employees.
Many employees are unaware of the consequences of resignation. The
consequences can be severe. For example, an employee who resigns has a
high likelihood of not being eligible for unemployment insurance or
continued healthcare coverage under COBRA. It can also adversely affect
their immigration status. Further, it may trigger extreme repayment
obligations that could bankrupt an employee.
For example, if an employer offers tuition payments to employees, and
resignation by the employee would trigger an immediate payback obli-
gation, then an employee may be on the hook for tens of thousands of
dollars or more. This is also true for bonuses, commissions, equity
vesting, and more benefits that only trigger upon resignation. Most
contracts are written so that repayment is triggered only upon a resig-
nation, not at-will termination by the employer, because they would
otherwise be considered unconscionable contracts.
Without a bill like this in place, employers can use their knowledge of
employment laws and contract law - and their employees' lack thereof -
to give themselves a benefit at a major expense to the employee. One
tactic in particular an employer can use is terminating the employee,
then offering the employee to convert that termination into a resigna-
tion. An employee in this situation might view this offer as generous,
when the reality is that it is not.
This bill does nothing more than recognize that knowledge is power.
When employees know their rights and they have access to critical infor-
mation related to their circumstances, they can make better informed
decisions.
 
LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPACT:
TBD
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date