Establishes the "no severance ultimatums act", which prevents employers from giving ultimatums to employees or former employees relating to such employee's severance from employment.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8986
SPONSOR: Bronson TITLE OF BILL:
An act to amend the labor law, in relation to establishing the "no
severance ultimatums act"
PURPOSE:
To ensure that all New Yorkers are provided protections when reviewing
severance agreements, including providing ample time to review such
agreements.
SUMMARY OF PROVISIONS:
Section one would set forth the title.
Section two would add a new section 215-d to the Labor Law which would:
prohibit severance ultimatums including requirements that employers
provide notification of the right for an employee or former employee to
consult an attorney regarding the agreement; provide at least 21 days
for an employee to review agreement; allow an employee to revoke an
agreement within 7 days of execution of the contract; and allow an
agreement to be signed in less than 21 days so long as it is knowingly
and voluntarily done, and without fraud on the part of the employer.
Section three would establish the effective date.
JUSTIFICATION:
Under the federal Older Workers Benefit Protection Act (OWBPA), part of
the federal Age Discrimination in Employment Act, an employer is
required to provide a 21-day attorney review period in any severance
agreement offered to an employee who is age 40 or older. The agreement
must also contain a 7-day revocation period. However, there are current-
ly no statutory protections, in either New York State or federal law,
for those under the age of 40 being offered severance agreements. In
these instances, employers can force an employee or former employee into
considering an agreement on the spot, with no additional time to review
it themselves or with legal counsel.
Several other states have sought to address this gap in policy, though
none as comprehensively as in this proposal. In 2020, Illinois provides
21-day consideration periods with a 7-day revocation period but only if
the agreement contains promises of confidentiality related to alleged
unlawful employment practices. More recently, California implemented a
5-day minimum severance consideration period to workers.
This bill would seek to extend the protections from the OWEPA to all
employees of the state, regardless of age.
LEGISLATIVE HISTORY:
2023-2024: A8154 - Referred to Labor; enacting clause stricken
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
This act would take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8986
IN ASSEMBLY
January 31, 2024
___________
Introduced by M. of A. BRONSON -- read once and referred to the Commit-
tee on Labor
AN ACT to amend the labor law, in relation to establishing the "no
severance ultimatums act"
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "no severance ultimatums act".
3 § 2. The labor law is amended by adding a new section 215-d to read as
4 follows:
5 § 215-d. Prohibition against severance ultimatums. 1. Definitions. For
6 the purposes of this section, the following terms shall have the follow-
7 ing meanings:
8 (a) "Employee" shall have the same meaning as set forth in section one
9 hundred ninety of this chapter.
10 (b) "Employer" shall:
11 (i) have the same meaning as set forth in section one hundred ninety
12 of this chapter; and
13 (ii) include governmental agencies.
14 2. Severance ultimatums prohibited. Any employer offering an employee
15 or former employee an agreement related to such employee's severance
16 from employment shall notify such employee that:
17 (a) Such employee has the right to consult an attorney regarding such
18 agreement, and provide such employee with a reasonable period of time
19 not less than twenty-one business days in which to do so;
20 (b) Such employee may revoke such agreement within seven days of the
21 execution of such agreement, and the agreement shall not become effec-
22 tive or enforceable until such revocation period has expired; and
23 (c) Such employee may sign such agreement prior to the end of such
24 revocation period, as long as such employee's decision to shorten such
25 revocation period is knowing, voluntary, and not induced by the employer
26 through fraud, misrepresentation, or a threat to withdraw or alter such
27 revocation period prior to the expiration of such revocation period, or
28 by providing different terms to such employee if such employee signs
29 such agreement prior to the expiration of such revocation period.
30 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11903-01-3
