The New School Layoffs 2026: The Voluntary Separation Trap and Your Rights

Apr 13

The New School in New York City is currently executing what the American Association of University Professors (AAUP) has called "the largest attempted firing of faculty in the nation" . Facing a severe financial crisis and a recent bond downgrade by S&P Global Ratings, the university announced plans to reduce its workforce by up to 20%, eliminating approximately 620 jobs.

The layoffs have sparked outrage among faculty, staff, and students, leading to protests and union organizing efforts. But beyond the headlines, there is a critical legal battle unfolding over how these layoffs are being handled.

If you are a faculty or staff member at The New School, you are likely facing a high-pressure decision regarding a "Voluntary Separation Package" (VSP). Before you sign away your rights, here is what you need to know about the university's tactics, the NY WARN Act, and your legal leverage.

The Scale of the Cuts

The New School's financial restructuring is sweeping, but it is not impacting all departments equally. The cuts are disproportionately targeting the humanities and social sciences, specifically the New School for Social Research (NSSR) and Eugene Lang College. Parsons School of Design, which generates the bulk of the university's revenue, is reportedly facing fewer reductions.

The timeline of the layoffs has been aggressive:

•November 2025: The university first announced a hiring freeze and budget cuts.

•February 2026: S&P Global Ratings downgraded The New School's bond rating.

•March 13, 2026: The university officially announced the 15-20% workforce reduction plan.

•June 1, 2026: The deadline for staff to accept the Voluntary Separation Package.

•June 12, 2026: The official date for involuntary layoffs to take effect.

The "Voluntary Separation" Trap

To achieve its reduction goals, The New School is heavily pushing a Voluntary Separation Package (VSP). The offer includes:

•6 months of base salary

•12 months of continued health benefits

•A 4-year tuition waiver for dependents

While this may seem like a standard buyout offer, the university's tactics are highly coercive. In its own FAQ document regarding the VSP, the administration explicitly warns employees that if they decline the voluntary offer and are subsequently laid off involuntarily, their severance package will be "not as substantial.”

From an employment law perspective, this is a classic pressure tactic designed to force employees into signing a release of claims out of fear. By accepting the VSP, you are signing a legally binding contract that waives your right to sue the university for age discrimination, breach of contract, or WARN Act violations.

The NY WARN Act Problem

The timeline of The New School's layoffs raises significant legal questions under the New York Worker Adjustment and Retraining Notification (WARN) Act.

The NY WARN Act requires employers with 50 or more employees to provide at least 90 days' advance written notice before a mass layoff or plant closing. If an employer fails to provide this notice, they may be liable for back pay and benefits for each day of the violation.

The New School announced the layoffs on March 13, with an effective date of June 12. This is exactly 91 days. However, the legal requirement is that individual employees must receive formal, written notice 90 days in advance. A general university-wide email does not satisfy the WARN Act. If you are laid off on June 12 but did not receive your formal individual notice until April or May, the university may be in violation of state law.

Your Rights as Faculty and Staff

Whether you are unionized or non-unionized, you have specific rights during a mass layoff:

1.Union Protections: If you are a member of ACT-UAW Local 7902 or the newly forming full-time faculty organizing committee, your collective bargaining agreement supersedes the university's arbitrary timelines. The union must be consulted regarding the terms of the layoffs.

2.Age Discrimination (OWBPA): If you are over the age of 40, federal law requires the university to give you at least 21 days to review the VSP (or 45 days if it is part of a group layoff program) and 7 days to revoke your signature. Furthermore, the university must provide you with a demographic breakdown of the ages and titles of everyone selected for the layoff versus those retained.

3.Tenure and Contracts: Tenured faculty cannot be fired simply to balance a budget unless the university formally declares "financial exigency," a drastic step that The New School has not yet taken.

Do Not Sign Under Duress

A severance agreement is a contract, and contracts are negotiable. The university wants you to believe that the VSP is a "take it or leave it" offer, but your signature has immense value to them. By signing, you are protecting them from lawsuits.

Before you accept the Voluntary Separation Package, you must understand exactly what you are giving up.

Sign up for my Severance Negotiation Course and download my free Severance Negotiation Starter Guide. Learn how to decode the legal jargon, assess your leverage, and negotiate the exit package you deserve.