New York's "No Severance Ultimatums Act" Sets a New Minimum Standard for Severance Agreements, Expanding Protections for New York Employees (US)
On March 4, 2025, the New York State Senate passed S.372, the "No Severance Ultimatums Act," a first-of-its-kind legislation which, if enacted, will require New York employers to:
provide a minimum of 21 business days for employees to review severance agreements (which is waivable by the employee), and a nonwaivable seven-day revocation period after signing, and
notify employees of their right to consult with an attorney before signing the agreement.
Difference from Existing Law
Under existing federal law, the Older Workers Benefit Protection Act (OWBPA) mandates that employers seeking a release of claims under the federal Age Discrimination in Employment Act (ADEA) for employees ages 40 years or older must provide 21 days to review the agreement (or 45 days for group layoffs), and a seven (7) day nonwaivable revocation period after signing.
The No Severance Ultimatums Act will expand these protections to all New York employees, regardless of age, and to all severance agreements, seeking waiver of all claims, not just age discrimination claims.
Next Steps for New York Employers
If signed into law, the No Severance Ultimatums Act will take immediate effect. Employers in New York should be prepared to promptly update their severance agreements and policies to ensure compliance, as any severance agreement that violates the provisions of the No Severance Ultimatums Act shall be deemed void and unenforceable. Employers should plan to:
Incorporate the new 21-business-day review period and nonwaivable seven-day revocation period.
Add a notice to employees of their right to consult an attorney.
Adjust severance timelines to account for these extended review and revocation periods.
As a reminder, these changes may prolong severance negotiations, and employers will need to plan further ahead when offering severance packages.
This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
For more information on this and other topics, please contact Kevin via any of the channels listed below:
📧 kevin@kmckernan.com | 📞 718-317-5007