New York legislators are again considering the No Severance Ultimatums Act (S372A), proposed legislation that would provide employees with additional time and protections when deciding whether to accept a severance agreement following the end of their employment. If enacted, the bill would require employers to inform employees in writing of their right to consult an attorney before signing a severance agreement, provide employees with at least 21 calendar days to consider the agreement, and allow employees to revoke their acceptance within seven days after signing.
The legislation also seeks to ensure that employees’ decisions to enter into severance agreements are made knowingly and voluntarily. Under the proposed law, acceptance of a severance agreement could not be induced through fraud or misrepresentation, reflecting the Legislature’s stated goal of promoting informed decision-making during what is often a significant career transition.
In many respects, the bill mirrors protections currently available under federal law for workers age 40 and older under the Older Workers Benefit Protection Act. The key difference is that the No Severance Ultimatums Act would extend similar safeguards to employees of all ages, regardless of whether the severance agreement includes a waiver of age discrimination claims.
A substantially similar bill was introduced during the 2025 legislative session but ultimately did not become law. Its reintroduction nevertheless signals continued interest among New York lawmakers in providing employees with greater time and flexibility to evaluate severance offers and seek legal advice before relinquishing potential legal claims.