New York's "No Severance Ultimatums Act"

New York has passed legislation entitled the "No Severance Ultimatums Act," (Senate Bill S372A), which is currently awaiting the governor’s signature.  Once signed, the law takes effect immediately, leaving employers little to no lead time to update their severance agreement practices.  Under the new law, any employer offering a severance agreement that includes a release of waivable claims must provide the employee, regardless of age, with written notice of the right to consult an attorney, at least 21 calendar days to review and consider the agreement, a 7-day revocation period after signing, and written confirmation that the agreement does not become effective until that revocation period has expired.  Until now, these requirements applied only to employees age 40 or older under the federal Older Workers Benefit Protection Act.  This new law extends those protections to all New York employees.  Severance agreements that fail to comply with the statute will be void and unenforceable.  Employees may voluntarily sign before the 21-day consideration period expires, but only if the decision is knowing and voluntary.  Employers cannot pressure early signing by offering different terms or threatening to withdraw the offer.  The statute also permits a limited waiver for severance agreements negotiated pursuant to a collective bargaining agreement that specifically acknowledges the law.