New York’s “No Severance Ultimatums Act”

The New York Legislature has passed the “No Severance Ultimatums Act,” which would add Section 215‑d to the New York Labor Law and impose OWBPA‑style requirements on severance agreements offered to New York employees, regardless of age. If signed by Governor Kathy Hochul, the Act would take effect immediately and apply to virtually all New York employers, including governmental entities. Any severance agreement that requires an employee to release waivable claims would need to:

1. advise the employee of their right to consult an attorney;
2. provide at least 21 calendar days to consider the agreement;
3. include a 7‑day revocation period after signing;
4. state that the agreement is not effective or enforceable until the revocation period expires; and
5. confirm that any early signing is voluntary and not induced by threats, misrepresentation, shortened review periods, or changed terms. Non‑compliant agreements would be void and unenforceable, exposing New York employers to the risk of paying severance without obtaining a valid release.

Given the Act’s immediate‑effect provision, and its broad coverage of New York employers, now is the time to prepare. Employers with New York employees should promptly:

• revise severance templates to incorporate the required notices, 21‑day consideration period, 7‑day revocation period, and effective‑date language;
• review and retrain HR and managers on how severance offers are communicated, eliminating any suggestion that employees must “sign now” to keep the offer; and
• coordinate payroll, benefits, and offboarding processes so that severance payments and related benefits begin only after the revocation window has closed.

It is also prudent to inventory upcoming and pending New York separations—especially agreements already delivered but not yet signed—and develop contingency plans (such as reissuing agreements or extending deadlines) so that, if the Act is signed while agreements are in progress, severance packages remain enforceable and aligned with the new law.