Recently, the New York Senate passed a bill which would enhance protections for all workers. 

The No Severance Ultimatums Act would prohibit employers from delivering coercive severance ultimatums to employees and former employees reviewing severance agreements, and the goal is to provide employees ample time to review such agreements.  Specifically, the bill would require New York employers to provide a 21-day review and 7-day revocation period to all employees. 

Under current law, New York employers are statutorily required to provide a 21-day review and seven-day revocation periods in employment separation agreements in two scenarios: (1) if the employee is 40 or older and the waiver and release includes federal age discrimination claims; and/or (2) if the separation agreement with an employee or independent contractor resolves claims of discrimination, harassment, or retaliation and the employer wishes to include a nondisclosure provision regarding the factual foundation of the claim. 

The new legislation would require employers to provide all employees with at least 21 business days to review a separation agreement, and seven calendar days to revoke the separation agreement (meaning an agreement cannot become effective or enforceable until the revocation period has expired).  While employees can voluntarily sign a separation agreement before the required consideration period expires, the revocation period is not waivable. The Act also requires employers to notify employees that they have the right to consult an attorney regarding the separation agreement. The bill still needs to be passed by the New York Assembly and signed by the governor to become law.  If enacted, the Act will go into effect immediately.  Should the Act become law, employers should be prepared for a longer review period for all employees who are offered severance agreements.  We will continue to monitor developments and will provide updates as they become available.  If you have any questions, please feel free to contact Ali Law Group.

HRtelligence was created by the team at Ali Law Group, LLC.  Should you have any questions or need assistance, please contact Ali Law Group.

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