A proposed New York bill would impose restrictions on severance agreements

At a glance

• Employers must inform departing employees of their right to consult an attorney before signing any severance or separation agreement.
• Employees must be given at least 21 business days to review the agreement, ensuring they are not rushed into a decision.
• After signing, employees have seven days to revoke the agreement, offering a final safeguard against coercion

Passed by the New York Senate, Senate Bill S372, titled the 'No Severance Ultimatums Act', would provide protection for all workers when reviewing severance agreements. If enacted, Senate Bill S372 would require employers to advise departing employees of their right to consult an attorney regarding any severance or separation agreement and impose a mandatory 21-business-day period to consider any severance or separation agreement, along with a seven-day revocation period for all terminated employees.