July Tip of the Month: New York Advances New Minimum Requirements for Severance Agreements

On June 1, 2026, the New York State Legislature passed the No Severance Ultimatums Act (Ac”), which, if signed into law by Governor Hochul, would impose significant new requirements on severance agreements for New York employers.

Among other requirements, the Act includes a 21-day review period and a 7-day signature revocation period similar to severance agreement obligations under federal law for employees who are 40 or older. While the Act is not yet law and there are certain exceptions for employees covered by collective bargaining agreements, it would take effect immediately upon Governor Hochul’s signature. Any severance agreement that does not comply with the Act’s requirements would then be void and unenforceable, without any grace period or other advance notice. As a result, employers who make severance payments pursuant to noncompliant severance agreements could be exposed to claims they believed had been released. Employers with New York operations should promptly review the Act’s requirements, consider appropriate revisions to their severance agreements, and closely monitor whether the governor has signed the Act.