{"id":309150,"date":"2026-07-29T21:07:21","date_gmt":"2026-07-29T21:07:21","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/309150\/"},"modified":"2026-07-29T21:07:21","modified_gmt":"2026-07-29T21:07:21","slug":"new-york-severance-agreement-changes","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/309150\/","title":{"rendered":"New York Severance Agreement Changes"},"content":{"rendered":"

What employers should know about key developments this week:<\/p>\n


\nSeverance Agreement Overhaul: The No Severance Ultimatums Act, awaiting Governor Kathy Hochul\u2019s signature, would extend a 21-day review period plus a seven-day revocation period to all employees and require severance agreements to explicitly state that the employee has the right to consult counsel. The legislation would take effect immediately upon signature.
\nTrapped at Work Act Amendments: On December 19, 2026, New York\u2019s ban on \u201cstay or pay\u201d promissory notes takes effect. The Trapped at Work Act carves out financial bonuses and wage advances and adds new conditions for tuition repayment agreements. New York joins California and Connecticut in banning certain promissory notes.
\nEarned Safe and Sick Time Act Update: Amended Earned Safe and Sick Time Act rules, now in effect for New York City employers, require 32 hours of unpaid protected time off immediately upon hire and set new obligations for employers that use electronic systems to track sick leave balances for departing employees. <\/p>\n

In this episode of Employment Law This Week\u00ae, Epstein Becker Green attorney Drew C. Ambrose<\/a> discusses the No Severance Ultimatums Act and what employers should be doing now to prepare their severance agreements ahead of the governor\u2019s signature.<\/p>\n

Transcript<\/p>\n

[00:00:03] George Whipple: Welcome to Employment Law This Week. I\u2019m George Whipple. Change is in the air in New York, as employers in the Empire State are facing several logistical changes in the near future. This week, we get you prepared. First up, potential new restrictions on severance agreements. Epstein Becker Green\u2019s Drew Ambrose is here to tell us what employers should know about the No Severance Ultimatums Act, currently awaiting Governor Hochul\u2019s signature.<\/p>\n

[00:00:36] Drew Ambrose: The first is that it does not have an age restriction on it like the current law does. It does provide now for everyone a 21-day period to review a severance agreement and then a seven-day revocation period after it has been signed by the employee. The agreements also have to explicitly state that the employee has the right to consult counsel. Employers should be taking this time to work with their counsel to determine whether or not their severance agreements need to be updated, so that way they can hit the ground running once this bill does become law.<\/p>\n

[00:01:17] George Whipple: Thanks, Drew. If the governor signs the No Severance Ultimatums Act, it will become effective immediately, so it\u2019s important to take a look at those agreements now. Next, New York\u2019s Trapped At Work Act is set to take effect December 19, following the amendments signed in February of this year. The amended law bans \u201cstay or pay\u201d employment promissory notes, but includes a broad carve-out for financial bonuses and advancement of wages.<\/p>\n

[00:01:49] George Whipple: The Act also creates new restrictions on tuition repayment agreements. Similar to California\u2019s \u201cstay or pay\u201d ban, there are specific repayment obligations, which must be in a separate written contract. New York joins California and Connecticut in bans on certain promissory notes. Finally, new rules for the Earned Safe and Sick Time Act went into effect last week for New York City employers.<\/p>\n

[00:02:18] George Whipple: The rules reflect the Act\u2019s requirement to provide 32 hours of unpaid protected time off to an employee immediately upon hire. Employers who use an electronic system to share sick leave balances will need to either make the system available to prior employees for six months or to prepare a sick leave balance statement to share upon termination. That\u2019s it for this week. Thank you for watching. We\u2019ll see you next time.<\/p>\n

In Case You Missed It<\/p>\n

Attention Connecticut Warehouse Employers: Deadline for New Quota Notices Approaching<\/a>, Workforce Bulletin<\/p>\n

New Jersey Department of Labor’s Guidance Clarifies Expanded Job-Protected Leave Rights for Employees<\/a>, Workforce Bulletin<\/p>\n

New York City Publishes Final Rules Related to the Earned Safe and Sick Time Act<\/a>, Workforce Bulletin<\/p>\n

About Employment Law This Week<\/p>\n

For employers navigating risk, workforce, and the bottom line. Employment Law This Week\u00ae<\/a> delivers the employment and labor developments that matter\u2014without the noise. Part of the Epstein Becker Green Insights Network.<\/p>\n

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