Termination Without Severance In New York
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On March 4, 2025, the New York Senate passed Senate Bill S372 (the “No Severance Ultimatums Act” or “S372”). If enacted, S372 would add a new section to the New York Labor Law requiring New York employers to provide for a 21-business day review period and a seven-day revocation period in all severance agreements.
Employees in New York State are considered “at-will” employees, meaning that the employee can be terminated without warning, at any time, and for any reason or no reason at all. While employment may be “at-will,” there is an exception to the doctrine of at-will employment in New York.
This notice must be provided within five days after separation. New York also requires employers that provide a group health insurance plan and have fewer than 20 employees to notify separated employees of their right to continue coverage under New York's state-level COBRA law.
Are Severance Packages Required by Law? Neither federal nor New York state law requires that businesses offer severance packages to employees. This means that companies have the ability to decide if severance packages should be a part of their benefits plan.
Payments. Start more than 30 days after you separated from your employer. Then they're not an offsetMorePayments. Start more than 30 days after you separated from your employer. Then they're not an offset if they start before that 30-day uh window then they can be an offset pretty strange.
You may be denied benefits if you: Were fired because you violated a company policy, rule or procedure, such as absenteeism or insubordination. Quit your job without good cause, such as a compelling personal reason.
Your termination could be wrongful if your employer fired you: Due to discrimination. In violation of a federal or state labor law. Because you reported and refused to participate in harassment.
New York observes “at-will” employment laws, meaning an employer can terminate a worker at any time for any reason or without reason. This works both ways, as employees can also quit their jobs without cause or notice.
While multimillion awards are possible, it is crucial to keep in mind that federal laws limit the amount of punitive and compensatory damages awarded in cases involving wrongful termination. They cannot exceed $50,000 – $300,000, depending on the number of employees working for the employer's business.