New York’s “No Severance Ultimatums Act” Would Increase Severance Agreement Requirements

The New York Legislature has passed a bill that would impose additional requirements on employers offering severance agreements to New York employees. The bill, colloquially titled the “No Severance Ultimatums Act” (the “Act”) now awaits Governor Kathy Hochul’s signature. Employers should begin to prepare for the potential changes that will accompany enactment.

No Severance Ultimatums Act

The Act adds a new Section 215-d to the New York Labor Law (“NYLL”) and prohibits so-called “coercive severance ultimatums.” Specifically, the Act requires that employers provide separating employees additional time and information before such employees release waivable claims. The Act would apply to all New York employees. Notably, the Act expressly includes governmental agencies in its definition of “employer.”