Compliance Stuff

A bill that would give terminated employees in New York more time to review severance agreements and limit employers’ ability to pressure employees into quickly signing such agreements just passed both houses of the New York Legislature. After failing to advance last year, the No Severance Ultimatums Act how heads to Governor Hochul’s desk after passing both houses on June 1. If she signs it, the law would take effect immediately, potentially requiring employers to revise their severance practices on very short notice. As employers await Governor Hochul’s decision, here are the bill’s key provisions and practical steps employers may wish to consider now. What Would the Bill Require? If enacted, the bill would apply to separation agreements that require employees to release legal claims against their employer. Employers offering current or former employees severance agreements would be required to inform them of: Their right to speak with an attorney before signing; A minimum 21-cal...

Employers would have to give all employees in New York time to review and revoke severance agreements under a bill that just passed the state Senate on March 4. The No Severance Ultimatums Act now moves to the Assembly, and if it’s ultimately enacted, the legislation would amend the New York Labor Law to prohibit employers from imposing “coercive ultimatums” in employment severance agreements. Here’s what you need to know about the proposal as it moves through the legislative process. Key Provisions Review Period:   Employers would be required to provide employees a t least 21 business days to review a severance agreement before signing. Time to Revoke:   After signing, employees would have seven days to revoke the agreement. The agreement would only become effective after this revocation period expires. Notice:   Employers would need to inform employees that they have a right on consult with an attorney before signing the agreement. Effective Immediately:   The law...