New York Poised to Expand Severance Agreement Rules: Key Employer Takeaways
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...