In an era marked by shifting employment dynamics, New York has once again taken a bold step to safeguard worker rights through the enactment of the No Severance Ultimatums Act (NSUA). This landmark legislation, effective as of March 1, 2025, targets a longstanding area of abuse in the employer-employee separation process: coercive and time-sensitive severance agreements that pressure employees into waiving critical rights without informed consent.
For employees facing layoffs, restructuring, or termination, severance agreements arrive during a vulnerable time when livelihood, reputation, and legal rights are on the line. Historically, many employers have taken advantage of this vulnerability by issuing “take-it-or-leave-it” ultimatums with little to no room for negotiation or legal review. The No Severance Ultimatums Act directly addresses these issues, instituting a suite of protections designed to level the playing field for employees and enhance procedural fairness.
If you are beginning to sense that your job may be in jeopardy, whether due to company restructuring, leadership changes, or subtle reductions in your responsibilities, be prepared to take action before a termination becomes official. At Levine & Blit, our severance agreement New York attorneys have developed a distinctive and highly effective method for helping employees obtain severance packages, even in situations where none were originally offered.
This approach is unique to our firm, and for good reason. We don’t publicize the details. It’s a proprietary, results-driven strategy personalized to your specific circumstances, particularly if you’re still on the payroll but noticing signs that your position may be at risk.
There’s no benefit to waiting until you have already been let go. By reaching out now, while you’re still employed, you gain valuable time to position yourself for a stronger outcome. Our New York City labor and employment attorneys are ready to guide you through the process confidentially, proactively, and strategically. Let us help you assess your situation, explore your legal options, and negotiate a fair severance package that protects your future.
👉Also Read: Top Severance Package Considerations for Executive and Senior Roles in New York
The Purpose Behind the No Severance Ultimatums Act
The No Severance Ultimatums Act was born out of a series of high-profile investigations and lawsuits where employees (particularly mid-to-senior level professionals) were found to have signed away critical rights under duress. Many severance agreements included non-disparagement clauses, broad releases of claims, and confidentiality provisions, sometimes without the employee even understanding their scope.
Legislators recognized that unequal bargaining power, compounded by the emotional stress of termination, resulted in employees waiving protections under state and federal law, including rights under:
- Title VII of the Civil Rights Act
- The Age Discrimination in Employment Act (ADEA)
- The Americans with Disabilities Act (ADA)
- New York State and City Human Rights Laws (NYSHRL & NYCHRL)
The No Severance Ultimatums Act aims to eliminate these coercive tactics and ensure that all employees have adequate time, information, and access to legal review before signing any severance agreement.
Key Provisions of the No Severance Ultimatums Act
The NSUA sets forth several critical legal standards that all employers operating in New York must now follow:
Mandatory Waiting Period
Employees must be given a minimum of 14 calendar days to consider a severance agreement before being asked to sign. This is a mandatory “cooling-off” period, regardless of the employee’s age or job classification.
- For employees aged 40 and older, this waiting period does not replace the 21-day consideration and 7-day revocation period required under the federal Older Workers Benefit Protection Act (OWBPA); it adds to it.
Right to Legal Counsel Notification
Employers must notify employees in writing of their right to consult with a New York severance agreement review lawyer before signing. The failure to do so renders the agreement unenforceable. This requirement affirms a longstanding best practice that is now codified into law: getting legal representation from an NYC severance agreement lawyer is a prudent strategy.
Clear and Understandable Language
Severance agreements must be written in plain, understandable language or the employee’s primary language, literacy level, and education. Agreements that use legalese, ambiguous phrasing, or translation deficiencies can now be challenged in court.
Prohibition on Threats or Retaliation
Employers are explicitly prohibited from conditioning severance on silence. This includes bans on:
- Threatening legal action for refusing to sign
- Retaliating against employees who choose to speak with a lawyer
- Conditioning the continuation of health benefits or references on immediate acceptance
Review Window Cannot Be Waived
Employees cannot waive the mandatory 14-day review period, even voluntarily. This eliminates pressure tactics disguised as “bonus incentives for early acceptance.”
👉Also Read: 8 Legal Reasons to Have a New York Lawyer Review Your Severance Package
How This Law Interacts with Existing Employment Laws
The NSUA doesn’t exist in a vacuum. Instead, it strengthens and complements existing New York and federal worker protection statutes.
Interaction with OWBPA
As mentioned, workers over the age of 40 still retain OWBPA rights, which include a 21-day review period and a 7-day revocation window. The NSUA adds minimum procedural safeguards for all employees, not just older workers.
Reinforcing Anti-Discrimination Laws
By removing obstacles that previously silenced victims of discrimination and harassment, the NSUA enhances the enforceability of the New York City Human Rights Law (NYCHRL), which ranks among the most employee-friendly statutes in the nation.
Employees who felt forced into silence under past severance agreements may now have grounds to revisit their rights if the agreement was signed under duress or without full legal understanding.
Effect on Non-Disclosure Agreements (NDAs)
The Act does not prohibit NDAs outright but limits their use when they are broad, vague, or retaliatory. Employers may still include narrow confidentiality provisions, but they must now:
- Clearly define what information is covered
- Not prevent employees from reporting illegal conduct
- Not apply retroactively to conduct not disclosed during negotiation
Implications for Mid-to-Senior Level Professionals in New York
Executives, senior managers, and professionals in finance, tech, media, and other high-visibility industries generally receive comprehensive severance packages that include equity buyouts, long-tail bonuses, and restrictive covenants such as non-competes or non-solicits.
The NSUA is particularly impactful for this demographic because:
- The stakes are higher: Signing away rights without full knowledge can cost professionals six- or seven-figure compensation.
- The terms are more complex: Severance agreements at this level often include performance-based conditions and post-employment restrictions.
- The reputational risk is real: Many professionals previously accepted silence in exchange for severance to avoid harming future job prospects. The NSUA now creates room for transparent and strategic negotiation.
If you’re a high-level employee navigating termination, the time to consult a New York City severance agreement review lawyer is before you even respond to an offer. The power to negotiate better terms, financial and otherwise, rests on a proactive legal strategy.
What This Means for Employers in New York
Employers operating in New York must immediately adjust their HR and legal compliance practices. Failing to abide by the NSUA’s mandates can result in:
- Unenforceable agreements
- Potential reinstatement claims
- Retaliation lawsuits
- Monetary penalties and legal fees
HR departments should revise all template agreements to:
- Include the required statutory notices
- Allow for proper review periods
- Avoid vague or overly broad language
- Ensure all agreements are in plain, understandable language
Corporate legal teams must also be trained to respect an employee’s right to legal counsel and avoid any suggestion of coercion.
👉Also Read: How to Secure Severance in New York When Termination is Looming: Levine & Blit’s Exclusive Approach
How Our NYC Severance Lawyer Can Help You
At Levine & Blit, our NYC severance agreement lawyers are recognized industry leaders in employment law, and we represent employees exclusively. We have successfully negotiated severance pay packages worth millions of dollars on behalf of executives, professionals, and high-profile individuals facing job transitions.
We understand the emotional, financial, and legal pressure that can accompany the end of an employment relationship, especially when you are presented with a legally complex document that could impact your career and future earning power. With the recent enactment of the No Severance Ultimatums Act, the legal terrain has shifted in your favor, but that only helps if you have strong legal representation to assert your rights.
Here’s how our New York employment lawyers can help you:
Severance Agreement Review
Our seasoned attorneys will conduct a diligent, line-by-line review of your separation agreement. A severance agreement typically includes a number of clauses. We will explain each clause in plain English and flag provisions that:
- Limit your right to future employment (e.g., overbroad non-compete clauses)
- Release the employer from legal liability without adequate compensation
- Bind you to indefinite non-disparagement or confidentiality
- Waive claims under state and federal anti-discrimination or wage laws
- Include tax or employee benefits-related traps that may affect unemployment eligibility or COBRA continuation
This is not a cookie-cutter service. Every client’s goals are different. Some want to maximize their payout as a lump sum payment, while others want to preserve their reputation or secure favorable references. We adapt our legal guidance to fit your priorities and long-term interests in such an agreement.
Strategic Negotiation and Re-Negotiation
If your severance agreement is insufficient, unfair, or coercively structured, we will negotiate directly with your employer or their counsel to improve the terms. This might include:
- Increasing the severance payment based on tenure, bonus history, or contract promises
- Extending salary continuation periods
- Negotiating a neutral reference or departure statement
- Modifying restrictive covenants (e.g., reducing the duration or geographic scope of non-competes)
- Securing continued health insurance coverage, bonus compensation, or stock options
In light of the No Severance Ultimatums Act, employers are now under more scrutiny when imposing “sign-now-or-lose-it” tactics. That means there’s new leverage for employees willing to consult with a law firm and strategically push back with potential legal claims.
Litigation Risk Assessment
Some severance agreements ask employees to release serious legal claims, such as those for:
- Sexual harassment
- Retaliation for whistleblowing
- Race or age discrimination
- Wage theft or unpaid commissions
Before you sign away your rights, our New York severance lawyers will evaluate whether you have strong underlying claims that may entitle you to significantly more compensation than what’s being offered. If so, we’ll explain your legal options, which may include:
- Filing a claim with the EEOC or NYC Commission on Human Rights
- Pursuing arbitration or litigation
- Using potential claims as leverage in severance negotiations
Employers may propose severance packages specifically to avoid legal exposure. If your employer wants you to sign quickly, there is usually a reason, and you deserve to understand what that reason is.
High-Profile and Confidential Representation
Levine & Blit is well-known for handling high-profile severance cases discreetly. Our client list includes Fortune 500 executives, media personalities, financial industry professionals, and entertainers. Our NYC employment attorneys understand the nuances of negotiating severance for individuals whose careers depend on:
- Reputation management
- Public relations considerations
- Maintaining confidentiality
- Minimizing media exposure
We know how to negotiate favorable exit terms behind the scenes, with minimal disruption to your professional or personal life. Whether you’re in the public eye or simply concerned about the impact of a career transition, we will protect your confidentiality with the highest degree of discretion.
Executive and C-Suite Representation
Senior executives and officers are often bound by employment contracts, equity arrangements, or bonus structures that intersect with severance negotiations. Our lawyers are deeply experienced in:
- Reviewing and negotiating executive employment agreements
- Handling golden parachute severance packages
- Protecting equity, stock options, deferred compensation, and 401(k) implications
- Negotiating non-competition and solicitation carve-outs
The stakes are higher at the executive level—and so are the legal complexities. We work in tandem with financial advisors and accountants when needed to ensure your exit strategy is aligned with your long-term goals.
Post-Termination Risk Management
Signing a severance agreement may seem like the end of your employment relationship, but it could be just the beginning of new legal considerations. We help clients:
- Avoid post-employment legal disputes
- Understand what they can and cannot say publicly or on social media
- Respond to internal or regulatory investigations
- Prepare for future job interviews while honoring contract obligations
We’re not just focused on helping you exit a job. We’re invested in your ability to move forward safely and successfully.
When to Contact Levine & Blit
If you’ve been presented with a severance agreement, or expect to be, do not sign anything before speaking with our attorneys. With the new 14-day mandatory review period under the No Severance Ultimatums Act, you have time—and we will make sure you use it wisely.
Our attorneys are available for free phone evaluations, and we offer rapid turnarounds for urgent severance matters. Whether you are facing an immediate deadline or want to proactively prepare for an upcoming transition, we’re ready to help.
👉Also Read: Does Severance Pay Stop When You Get a New Job? Insights from a New York Severance Attorney
The New Law Empowers You: Call Us Now
The passage of the No Severance Ultimatums Act represents a significant shift in employment law. It finally puts procedural power back in the hands of employees. But laws only work when enforced. With Levine & Blit at your side, you will have a powerful legal ally ready to defend your rights, negotiate your best deal, and position you for future success.
Don’t leave your severance and your future to chance. Call us at 646-461-6838 or contact us online to set up a confidential consultation.