NY State Senate Passes No Severance Ultimatums Act

The New York State Senate recently passed the No Severance Ultimatums Act (the Act), Senate Bill S372. This would amend the New York Labor Law to add new § 215-d and require employers offering severance pursuant to an agreement to provide:

• a review period of up to 21 business days within which to review such agreement;
• a seven-day non-waivable revocation period within which to revoke such agreement; and
• a notice advising the employee of the right to consult with an attorney regarding such agreement.

Under the Act, employees may sign the agreement before the expiration of the 21-day review period, provided it was knowingly and voluntarily executed, and without fraud, misrepresentation, or threat on the part of the employer. Severance agreements that violate the Act would be deemed void and unenforceable.