New York State Senate Passes “No Severance Ultimatums Act”
In March of 2025, the New York State Senate passed the No Severance Ultimatums Act. The proposed law is designed to “prevent employers from giving coercive ultimatums to employees or former employees relating to such employee’s severance from employment.” If it becomes law, the bill would give workers in New Jersey the right to take time to review any proposed severance agreement before signing—that is a right that many older workers already have in our state. The bill still needs to be passed by the Assembly and signed by the Governor. Here, our New York employment lawyer provides an overview of the key things to know about the proposed law.
An Overview of the Proposed Law: No Severance Ultimatums Act
As currently proposed—and passed by the New York State Senate—the No Severance Ultimatums Act has a number of notable provisions that are designed to provide additional protections to employees who have been offered severance. Here are key points:
- 21-Business-Day Review Period: First and foremost, employers in New York would be required to provide employees with at least 21 business days to review a proposed severance agreement. The period allows employees ample time to consider the terms and seek legal counsel if desired. Notably, employees have the option to waive this review period and sign the agreement early— as long as they do so knowingly and voluntarily.
- A Minimum Mandatory 7-Day Revocation Period: The proposed New York bill also holds that employees must be granted a minimum mandatory seven day revocation period after signing a severance agreement. The agreement becomes effective only after this revocation period has passed.
- Notice of the Right to Consult With an Employment Attorney: Finally, under the proposed law, employers would be required to inform workers of their right to consult with their own employment attorney before signing the severance agreement.
Bill Would Effectively OWBFA Severance Protections to All Employees
The federal Older Workers Benefit Protection Act (OWBPA) mandates specific safeguards for employees aged 40 and over concerning severance agreements. Under the OWBPA, to validly waive age discrimination claims under the Age Discrimination in Employment Act (ADEA), employers must provide workers who are 40 or older with 21 days to review a severance agreement. Though, the OWBPA only applies to employers with 20 or more total employees.
Not Yet Law in New York: The Next Steps
While the New York State Senate has passed the “No Severance Ultimatums Act,” it is not yet law. The bill has been delivered to the New York State Assembly and referred to the Assembly Labor Committee. To become law, it must be passed by the Assembly and signed by the Governor.
Contact Our New York City Employment Law Advocates Today
At Poulos LoPiccolo PC, our New York employment attorney is a knowledgeable experienced advocate for justice. If you have any questions or concerns about severance agreements, please do not hesitate to contact us today for a fully confidential consultation. We provide employment law representation in Manhattan, Queens, Staten Island, Brooklyn, The Bronx, and beyond.
