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S00372 Summary:

BILL NOS00372A
 
SAME ASSAME AS A06480-A
 
SPONSORGIANARIS
 
COSPNSRWEBB
 
MLTSPNSR
 
Add §215-d, Lab L
 
Establishes the "no severance ultimatums act", which prevents employers from giving coercive ultimatums to employees or former employees relating to severance agreements.
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S00372 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         372--A
            Cal. No. 442
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                       (Prefiled)
 
                                     January 8, 2025
                                       ___________
 
        Introduced  by  Sens.  GIANARIS, WEBB -- read twice and ordered printed,
          and when printed to be committed to the Committee on Labor -- reported
          favorably from said committee and committed to the Committee on  Rules
          -- reported favorably from said committee, ordered to a third reading,
          passed  by Senate and delivered to the Assembly, recalled, vote recon-
          sidered, restored to third reading,  amended  and  ordered  reprinted,
          retaining its place in the order of third reading
 
        AN  ACT  to  amend  the  labor  law, in relation to establishing the "no
          severance ultimatums act"
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "no severance ultimatums act".
     3    § 2. The labor law is amended by adding a new section 215-d to read as
     4  follows:
     5    § 215-d. Prohibition against coercive severance ultimatums.  1.  Defi-
     6  nitions.  For  the  purposes  of this section, the following terms shall
     7  have the following meanings:
     8    (a) "Employee" shall have the same meaning as set forth in section one
     9  hundred ninety of this chapter.
    10    (b) "Employer" shall:
    11    (i) have the same meaning as set forth in section one  hundred  ninety
    12  of this chapter; and
    13    (ii) include governmental agencies.
    14    (c)  "Severance  agreement"  shall  mean  an  agreement  offered by an
    15  employer to an employee upon separation of  employment  and  related  to
    16  such  separation  that requires such employee to release waivable claims
    17  against their employer.
    18    2. Severance ultimatums. Any employer offering an employee  or  former
    19  employee a severance agreement shall notify such employee that:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00738-05-5

        S. 372--A                           2
 
     1    (a)  Such employee has the right to consult an attorney regarding such
     2  agreement;
     3    (b) Such employee shall be provided with a consideration period of not
     4  less  than  twenty-one calendar days within which to consider the agree-
     5  ment;
     6    (c) Such employee may revoke such agreement within seven calendar days
     7  of the execution of such agreement, and the agreement shall  not  become
     8  effective or enforceable until such revocation period has expired; and
     9    (d)  Such  employee  may  sign  such agreement prior to the end of the
    10  consideration period set forth in paragraph (b) of this subdivision,  as
    11  long as such employee's decision to shorten such consideration period is
    12  knowing,  voluntary,  and  not  induced  by  the employer through fraud,
    13  misrepresentation, or a threat to withdraw or alter  such  consideration
    14  period  prior  to  the  expiration  of  such consideration period, or by
    15  providing different terms to such employee if such employee  signs  such
    16  agreement prior to the expiration of such consideration period.
    17    3.  The  provisions  of  this  section  may be waived by any severance
    18  agreement that specifically acknowledges the provisions of this  section
    19  and negotiated pursuant to a collective bargaining agreement.
    20    4. Notwithstanding any other law to the contrary, any severance agree-
    21  ment  shall  be  deemed  void  and  unenforceable  if  it  violates  the
    22  provisions of subdivision two of this section.
    23    5. Nothing herein shall be deemed in any way to  limit,  restrict,  or
    24  impair  any  law, rule, or regulation from providing greater protections
    25  than provided for in this section.
    26    § 3. This act shall take effect immediately.
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