What is the New York No Severance Ultimatums Act?

The No Severance Ultimatums Act (S372A) is proposed New York legislation that would give employees more time and more protections when deciding whether to accept a severance agreement after their employment ends.

How long would employees have to consider a severance agreement under the bill?

Employers would have to give employees at least 21 calendar days to consider a severance agreement.

Could employees revoke a severance agreement after signing it?

Yes. Under the bill, employees could revoke their acceptance within seven days after signing.

How does the bill make sure severance decisions are voluntary?

The bill aims to ensure that employees enter severance agreements knowingly and voluntarily. It provides that an employee’s acceptance could not be induced through fraud or misrepresentation.

How is the No Severance Ultimatums Act similar to the OWBPA?

The bill closely mirrors protections that the federal Older Workers Benefit Protection Act already gives workers age 40 and older, including time to consider an agreement, a revocation period, and notice of the right to consult an attorney.

How is the No Severance Ultimatums Act different from the OWBPA?

The OWBPA protects only workers age 40 and older and applies when a severance agreement waives age discrimination claims. The New York bill would extend similar safeguards to employees of all ages, whether or not the agreement includes an age discrimination waiver.

Has the No Severance Ultimatums Act become law?

No. It is still proposed legislation. A substantially similar bill was introduced in the 2025 legislative session but did not become law.

Why was the No Severance Ultimatums Act reintroduced?

Its reintroduction shows that New York lawmakers remain interested in giving employees more time and flexibility to evaluate severance offers and get legal advice before giving up potential legal claims.

Should employees in New York talk to a lawyer before signing a severance agreement?

Yes, it is generally wise. Severance agreements often require employees to give up potential legal claims, and an employment attorney can explain what the agreement means, whether the terms are fair, and whether there is room to negotiate. That holds whether or not the bill becomes law.

What types of severance agreements would the No Severance Ultimatums Act cover?

The proposed law would apply to severance agreements offered in connection with an employee's separation that require the employee to release waivable legal claims against their employer.

Would the No Severance Ultimatums Act protect former employees?

Yes. The proposed legislation would protect both current and former employees who receive qualifying severance agreements, including workers in the public and private sectors.

Would New York employers be required to offer severance pay?

No. The proposed law would not require employers to provide severance pay. Instead, it would establish additional protections when employers offer severance agreements that include a release of legal claims.

Can employees sign a severance agreement before the 21-day review period ends?

Yes. Employees could voluntarily sign before the 21-day consideration period expires, provided their decision is informed and not influenced by employer pressure, fraud, or misrepresentation.

Can employers offer additional severance benefits for signing early?

No. Under the proposed legislation, employers could not offer different severance terms to encourage employees to sign before the review period expires or threaten to withdraw the offer early.

When would a severance agreement become legally enforceable?

Under the proposed law, a severance agreement would not become effective or enforceable until the seven-calendar-day revocation period has expired without the employee revoking the agreement.

What happens if a severance agreement violates the proposed law?

If enacted, the No Severance Ultimatums Act would make severance agreements that violate its requirements void and unenforceable, potentially preventing employers from enforcing the employee's release of legal claims.

Would the proposed law apply to union-negotiated severance agreements?

The proposed legislation would allow its requirements to be waived in certain severance agreements negotiated under a collective bargaining agreement, provided the agreement specifically acknowledges the law's provisions.

Would the No Severance Ultimatums Act replace existing employee protections?

No. The proposed legislation would not eliminate protections available under other state or federal laws. Employees would continue to benefit from any applicable laws providing greater protections.

When would the No Severance Ultimatums Act take effect if enacted?

Under the proposal, the legislation would take effect immediately upon becoming law. Employers would therefore need to ensure their severance agreements and separation procedures comply with the new requirements.

New York Legislature Considers Expanded Requirements for Severance Agreements

Q: Would employers have to tell employees they can consult a lawyer?

Yes. Employers would have to inform employees in writing of their right to consult an attorney before signing a severance agreement.

5 Nov 2026

Last Updated: November 5, 2026

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.

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About Kathryn Hettler

Kathryn Hettler is an Associate in Faruqi & Faruqi’s New York office. Kathryn’s practice is focused on employment litigation.

Kathryn Hettler

Associate at Faruqi & Faruqi, LLP

New York office

Tel:(212) 983-9330

Fax:(212) 983-9331

E-mail:khettler@faruqilaw.com

Tags: employee rights, Employment Attorney, New York Employment Law, New York legislation, No Severance Ultimatums Act, OWBPA, Release of Claims, Severance Agreements, Severance Negotiation, Wrongful Termination

New York Legislature Considers Expanded Requirements for Severance Agreements

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