What's happening
This bill requires the Department of Labor to inform unemployment benefit applicants that accepting severance pay may affect their eligibility.
Why it matters
Increases transparency for unemployment benefit applicants. by ensuring they are directly informed of how accepting severance pay could impact their eligibility—helping them make more informed financial decisions during job transitions.
Potentially reduces unintentional disqualification or overpayments. by preventing situations where individuals unknowingly jeopardize their unemployment benefits due to a lack of information about severance implications.
Places new obligations on the Department of Labor. to update their notification and communication procedures, which may require changes to application materials, staff training, and public outreach.
Could affect employer-employee negotiations. around severance agreements, since clearer information about benefit eligibility may change how workers view and accept severance packages.
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Who cares
Headline styles
Notify About Severance Impact
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to labor
- Referred to labor
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1572
2017-2018 Regular Sessions
IN SENATE
January 10, 2017
Introduced by Sen. AVELLA -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to unemployment benefits
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The labor law is amended by adding a new section 593-a to read as follows:
§ 593-a. Severance pay. The department shall notify and inform individuals applying for benefits pursuant to this article that any acceptance of a severance agreement may affect the eligibility for such benefits.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01232-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the labor law, in relation to unemployment benefits
Purpose
To require the Department of Labor to notify individuals applying for unemployment benefits that the acceptance of severance pay may affect eligibility for such benefits.
Summary of provisions
Section 1 of this bill amends the labor law by adding a new section 593-a concerning severance pay, which states that the department shall notify and inform individuals applying for benefits pursuant to this article that any acceptance of a severance agreement may affect the eligibility for such benefits.
Section 2 of this bill states that this act shall take effect immediately.
Justification
Currently, applicants for unemployment benefits may be denied because of their acceptance of a severance package. However, applicants are not notified that such an acceptance of a severance package may affect these benefits. In order for people to make a more informed decision, the Department of Labor should be required to explain to those applicants how the acceptance of a severance package may affect their eligibility.
Legislative history
New Bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.