NY Passes Law To Protect Employees From Severance Ultimatums

On June 1, 2026, New York legislators passed the “No Severance Ultimatums Act,” Senate Bill S372A. The Act provides employees with additional time to review the terms of a severance agreement prior to signing it.

The Act requires that an employer must provide an employee with at least 21 days to consider the terms of a severance agreement, and once signed, an employee has 7 days to revoke their acceptance. The Act also requires that the employer notify the employee that they may consult an attorney prior to signing the agreement. Furthermore, an employer may not threaten to withdraw the agreement or alter its terms to induce an employee to sign prior to the end of the 21-day consideration period. This law applies to all employees, including those who have experienced discrimination and/or retaliation.

If signed, the Act will provide an important layer of protection for employees who have received severance agreements. Currently, an employer can provide a severance agreement to an employee and ask them to consider its terms on the spot. This Act will allow an employee additional time to seek counsel and better understand the terms of a severance agreement and any additional remedies they may have under law.

If you reviewed a severance agreement and are seeking a review of its terms, please contact us for a confidential consultation.