New York Legislature Passes Bill Mandating 21-Day Review Period for Severance Agreements
The New York State Legislature has passed a bill, S372A, also known as the “No Severance Ultimatums Act,” which is now awaiting delivery to Governor Kathy Hochul. If enacted, this legislation would introduce new procedural requirements for employers concerning separation agreements. Specifically, the bill mandates a minimum 21-day review period and a 7-day revocation period for any severance agreement that requires an employee to release claims against their employer. The proposed amendment to the New York Labor Law aims to establish minimum review protections for employees and former employees offered such agreements. Employers would be required to inform employees of their right to consult an attorney, the 21-day consideration period, and the 7-day revocation period. Employees may sign before the 21-day period ends, but only if their decision is knowing, voluntary, and not influenced by fraud, misrepresentation, threats, or altered terms for early signing. This bill extends protections similar to those u...