Remember when we mentioned that many states would be working overtime to counter the federal laws swings? Can you say in a New York Minute?
In a first, the NY State Senate has passed the “No Severance Ultimatums Act” which expands the review time and adds a seven day revocation period that cannot be waived for ALL SEVERANCE AGREEMENTS outside of collective bargaining agreements. Existing federal law offers these protections for older workers under the Older Workers Benefit Protection Act (OWBPA) and some states offer this expanded protection in the case of discrimination, harassment or retaliation claims. New York will greatly enlarge the employees who qualify for a longer review period and the 7 day revocation.
NOW WHAT: If the act is signed into law, it will take effect immediately. This means that severance agreements that do not comply will be void and unenforceable. Employers should be prepared to incorporate the new 21 business day review and the 7 day revocation period; include a notice of the right to consult an attorney (a good practice our clients already do); and adjust the severance timelines accordingly.
Keep in mind, these mandatory timelines will also prolong the timeline for severance and probably negotiations. Employers need to be ready. Oftentimes, as New York goes, so goes NJ, CA, MA, MN, etc.–the usual suspects. NY may be the first but probably not the last to expand the law here.
Questions? We will keep you in the know on this important change in the law. Contact us for questions on workplace law, any state and anytime.
*If I could, the Liza Minelli version of “New York, New York” would be blasting as you read this.