The New York State Senate recently passed the No Severance Ultimatums Act (the “Act”) which would substantially change the law with regard to how employers pay severance to their employees working in New York.
The Act would require employers, of any size, to notify employees of certain rights they have if they are offered severance. Many of the rights are similar to those afforded employees 40 and older under the Age Discrimination in Employment Act (the “ADEA”) and the Older Workers Benefit Protection Act (the “OWBPA”). For example, if adopted, the Act would require employers to notify their employees, regardless of age, that they have the right to seek counsel and employers would be required to give employees a mandatory 21-business day period to consider any severance or separation agreement as well as a seven-day revocation period. Currently, those under age 40 have no such protections.
If enacted, the Act would be one of the broadest severance protection laws in the country. Similar, previously proposed bills failed although this one might not. We will keep you advised of any further developments.
