NY State Senate Bill 2023-S7609

Current Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to labor
Jul 21, 2023	referred to rules

2023-S7609 (ACTIVE) - Details

See Assembly Version of this Bill:: A8986
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Add §215-d, Lab L

2023-S7609 (ACTIVE) - Summary

Establishes the "no severance ultimatums act", which prevents employers from giving ultimatums to employees or former employees relating to such employee's severance from employment.

2023-S7609 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7609

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the labor law, in relation to establishing the "no
severance ultimatums act"

 
PURPOSE:

The purpose of this bill is to ensure that all New Yorkers are provided
protections when reviewing severance agreements, including providing
ample time to review such agreements.

 
SUMMARY OF PROVISIONS:

Section one sets forth the title.

Section two adds a new section 215-d to the labor law which prohibits
against severance ultimatums. This includes requiring that employers
provide notification of the right for an employee or former employee to
consult an attorney regarding the agreement; provides at least 21 days

for an employee to review agreement; allows an employee to revoke an
agreement within 7 days of execution of the contract; and allows an
agreement to be signed in less than 21 days so long as it is knowingly
and voluntarily done, and without fraud on the part of the employer.

 
EXISTING LAW:

Currently, only those over the age of 40 are provided any statutory
protections when reviewing severance agreements in accordance with
federal law.

 
JUSTIFICATION:

Under the federal Older Workers Benefit Protection Act (OWBPA), part of
the federal Age Discrimination in Employment Act, an employer is
required to provide a 21-day attorney review period in any severance
agreement offered to an employee who is age 40 or older. The agreement
must also contain a 7-day revocation period. However, there are current-
ly no statutory protections, in either New York State or federal law,
for those under the age of 40 being offered severance agreements. In
these instances, employers can force an employee or former employee into
considering an agreement on the spot, with no additional time to review
it themselves or with legal counsel.

Several other states have sought to address this gap in policy, though
none as comprehensively as in this proposal. In 2020, Illinois provides
21-day consideration periods with a 7-day revocation period but only if
the agreement contains promises of confidentiality related to alleged
unlawful employment practices. More recently, California implemented a
5-day minimum severance consideration period to workers. This bill would
be the most progressive proposal in the country, instead seeking to
extend the protections from the OWBPA to all employees of the state,
regardless of age.

 
LEGISLATIVE HISTORY:

New bill.
 
FISCAL IMPLICATIONS:

None to the state.

 
LOCAL FISCAL IMPLICATIONS:

Click here

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S7609 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7609
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               July 21, 2023
                                ___________
 
 Introduced  by Sen. GIANARIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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:

   Section 1. Short title. This act shall be known and may  be  cited  as
 the "no severance ultimatums act".
   § 2. The labor law is amended by adding a new section 215-d to read as
 follows:
   § 215-D. PROHIBITION AGAINST SEVERANCE ULTIMATUMS. 1. DEFINITIONS. FOR
 THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
 ING MEANINGS:
   (A) "EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION ONE
 HUNDRED NINETY OF THIS CHAPTER.
   (B) "EMPLOYER" SHALL:
   (I)  HAVE  THE SAME MEANING AS SET FORTH IN SECTION ONE HUNDRED NINETY
 OF THIS CHAPTER; AND
   (II) INCLUDE GOVERNMENTAL AGENCIES.
   2. SEVERANCE ULTIMATUMS PROHIBITED. ANY EMPLOYER OFFERING AN  EMPLOYEE
 OR  FORMER  EMPLOYEE  AN  AGREEMENT RELATED TO SUCH EMPLOYEE'S SEVERANCE
 FROM EMPLOYMENT SHALL NOTIFY SUCH EMPLOYEE THAT:
   (A) SUCH EMPLOYEE HAS THE RIGHT TO CONSULT AN ATTORNEY REGARDING  SUCH
 AGREEMENT,  AND  PROVIDE  SUCH EMPLOYEE WITH A REASONABLE PERIOD OF TIME
 NOT LESS THAN TWENTY-ONE BUSINESS DAYS IN WHICH TO DO SO;
   (B) SUCH EMPLOYEE MAY REVOKE SUCH AGREEMENT WITHIN SEVEN DAYS  OF  THE
 EXECUTION  OF  SUCH AGREEMENT, AND THE AGREEMENT SHALL NOT BECOME EFFEC-
 TIVE OR ENFORCEABLE UNTIL SUCH REVOCATION PERIOD HAS EXPIRED; AND
   (C) SUCH EMPLOYEE MAY SIGN SUCH AGREEMENT PRIOR TO  THE  END  OF  SUCH
 REVOCATION  PERIOD,  AS LONG AS SUCH EMPLOYEE'S DECISION TO SHORTEN SUCH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11903-01-3
 S. 7609                             2

 
 REVOCATION PERIOD IS KNOWING, VOLUNTARY, AND NOT INDUCED BY THE EMPLOYER
 THROUGH FRAUD, MISREPRESENTATION, OR A THREAT TO WITHDRAW OR ALTER  SUCH
 REVOCATION  PERIOD PRIOR TO THE EXPIRATION OF SUCH REVOCATION PERIOD, OR
 BY  PROVIDING  DIFFERENT  TERMS  TO SUCH EMPLOYEE IF SUCH EMPLOYEE SIGNS
 SUCH AGREEMENT PRIOR TO THE EXPIRATION OF SUCH REVOCATION PERIOD.
   § 3. This act shall take effect immediately.

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Senate Bill S7609

Sponsored By

Current Bill Status - In Senate Committee Labor Committee

2023-S7609 (ACTIVE) - Details

2023-S7609 (ACTIVE) - Summary

2023-S7609 (ACTIVE) - Sponsor Memo

2023-S7609 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7609

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Sponsored By

Michael Gianaris

Current Bill Status - In Senate Committee Labor Committee

2023-S7609 (ACTIVE) - Details

2023-S7609 (ACTIVE) - Summary

2023-S7609 (ACTIVE) - Sponsor Memo

2023-S7609 (ACTIVE) - Bill Text download pdf

Comments