New York 2025-2026 Regular Session

New York Assembly Bill A06480

Introduced
3/5/25  
Refer
3/5/25  
Report Pass
4/30/25  
Refer
4/30/25  
Report Pass
6/5/25  
Refer
6/5/25  

Caption

Establishes the "no severance ultimatums act", which prevents employers from giving coercive ultimatums to employees or former employees relating to severance agreements.

Impact

This bill represents a substantial shift in the treatment of severance agreements within the state's labor laws. By instituting these requirements, A06480 seeks to create a more balanced power dynamic between employers and employees, reducing the likelihood of employees feeling pressured to accept severance terms that might not be in their best interest. This could lead to improved employee morale and trust towards employers, as workers may feel more secure in negotiating their severance terms without fear of undue pressure or coercion.

Summary

Assembly Bill A06480, officially known as the "No Severance Ultimatums Act", aims to enhance protections for employees concerning severance agreements. The legislation stipulates that employers must provide employees with specific rights when offering such agreements. Notably, it requires employers to inform employees of their right to consult with legal counsel and mandates a minimum period of twenty-one days for consideration of the severance agreement. Furthermore, it allows employees to revoke the agreement within seven days of signing, ensuring they have a chance to reconsider their decision post-execution.

Contention

During discussions regarding A06480, concerns were raised primarily about potential unintended consequences for employers. Critics argue that imposing strict limitations on how severance agreements are drafted might complicate the severance process and could deter employers from offering severance packages altogether, fearing legal repercussions. Supporters counter that the bill provides necessary safeguards for workers, particularly those in vulnerable positions or those who may not fully understand the implications of severance agreements. Overall, while supporters see it as a step toward fair labor practices, opponents view it as a possible hindrance to employer flexibility.

Companion Bills

NY S00372

Same As Establishes the "no severance ultimatums act", which prevents employers from giving coercive ultimatums to employees or former employees relating to severance agreements.

Previously Filed As

NY S07609

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

NY A08986

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

NY A08154

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.

NY A08354

Requires employers to provide paid vacation time which is based on the length of time employees have been employed by such employers.

NY S08219

Requires employers to provide paid vacation time which is based on the length of time employees have been employed by such employers.

NY S05403

Provides protection to employees and former employees from retaliatory actions by employers for the reporting of illegal or dangerous business activities.

NY A01747

Allows employers to request or require a prospective or current employee to execute a restrictive covenant not to engage in specified acts in competition with the employer after termination of the employment relationship as a condition of employment, continued employment, or with respect to severance pay.

NY A00688

Prohibits agreements between employers that directly restrict the current or future employment of any employee; allows for a cause of action against employers who engage in such agreements.

NY S03264

Prohibits agreements between employers that directly restrict the current or future employment of any employee; allows for a cause of action against employers who engage in such agreements.

NY A00513

Relates to requiring employers to obtain an acknowledgement of receipt from employees of their sexual harassment prevention policy and sexual harassment prevention training program in writing in English and in employees' primary languages; requires employers to obtain acknowledgements from employees and keep such acknowledgements for six years.

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