Immigrants, Accidents and Lawsuit Loans: Does NY Need New Rules?
It took eight months after construction worker Javier Bances Carranza injured himself in a fall for his lawyer to try to make him feel supported, but it was too late. When the lawyer learned Carranza intended to switch his negligence lawsuit against his employer to a more attentive law firm, according to Carranza’s affidavit, his current law firm texted him asking for explanations and threatened to “damage” his case. “I refused them and blocked their phone numbers,” he said.
A few days later, Carranza stated, one of the lawyer’s paralegals came to his Bronx home, insisting he return and “she also offered me loans for $40,000 and then for $50,000, which I rejected.”
Exactly how the loan Carranza turned down was to be made isn’t clear—lawsuit loans are allowed in New York, as long they are not made by an attorney. Yet Carranza’s story, told in his native Spanish and translated into English, is a potent clue to the value of his claim and the thriving business of bankrolled lawsuits.
* Source: Richard Korman, ENR’s business and legal news
New York’s “No Severance Ultimatums Act” Sets a New Minimum Standard for Severance Agreements, Expanding Protections for New York Employees (US)
On March 4, 2025, the New York state Senate passed S.372, the “No Severance Ultimatums Act” a first of its kind legislation which, if enacted, will require New York employers to:
- provide a minimum 21business days for employees to review severance agreements (which is waivable by the employee), and a nonwaivable seven-day revocation period after signing, and
- notify employees of their right to consult with an attorney before signing the agreement
These protections will apply to all severance agreements except those covered by collective bargaining agreements. This bill has now moved to the New York State Assembly (A.6480).
Difference from Existing Law
Under existing federal law, the Older Workers Benefit Protection Act (OWBPA) mandates that employers seeking a release of claims under the federal Age Discrimination in Employment Act (ADEA) for employees ages 40 years or older must provide 21 days to review the agreement (or 45 days for group layoffs), and a seven (7) day nonwaivable revocation period after signing.
The No Severance Ultimatums Act will expand these protections to all New York employees regardless of age and to all severance agreements, seeking waiver of all claims, not just age discrimination claims.
The law aligns with a broader push for greater transparency and fairness in employment agreements, similar to recent trends limiting nondisclosure agreements in workplace settlements. It seeks to prevent employees from feeling pressured into quickly signing severance agreements and to ensure employees have sufficient time to understand their rights, consult legal counsel and reconsider their decision after signing a severance agreement.
* Source: Lauren Herz of Squire Patton Boggs (US) LLP – Employment Law Worldview
Forever 21 has 350 stores remaining in the US; liquidation sales to begin during bankruptcy proceedings.
F21 OpCo made the move after the retailer, once known for affordable, on-trend fashions among teenagers and younger adults, was unable to find a buyer for its roughly 350 U.S. stores.
With most stores inside malls, the retailer says it was crippled by dwindling foot traffic and increased competition from online retailers.
Some of the largest e-commerce competitors to the company are Amazon, Shein and Temu.
Forever 21 was founded in Los Angeles in 1984 by South Korean immigrants. By 2016, it was operating around 800 stores globally, with 500 of those in the United States.
The clothing chain has faced issues since its first trip through bankruptcy in September 2019, during which it closed over 150 of its 534 stores and sold the rest.
*Source: By Pilar Arias FOXBusiness