BILL NUMBER: S2037

SPONSOR: BIAGGI
 
TITLE OF BILL:

An act to amend the general obligations law, in relation to requiring
the provisions of a waiver before the execution of a confidentiality
agreement

 
PURPOSE:

To require that an individual signing a confidentiality agreement is
fully informed of the rights they will be giving up by signing the
agreement.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 adds a new subdivision 4 to section 5-701 of the general obli-
gations law to require that before a confidentiality agreement is
executed the party is provided a waiver explaining the consequences of
the agreement and provide that a confidentiality agreement shall be void
              

if it restricts a party from lodging a complaint with the appropriate
local, state or federal agency, participating in an investigation, or
disclosing facts necessary to receive unemployment insurance, Medicaid
or other benefits they may be entitled to.

Section 2 provides the effective date.

 
JUSTIFICATION:

Entering a confidential settlement agreement often involves giving up
significant legal rights and it is critical that plaintiffs are not
coerced into signing these agreements without fully understanding their
ramifications. Requiring a signed, written waiver will ensure that any
individual considering a confidentiality agreement is informed of the
rights they will be surrendering and is able to assess the potential
costs and benefits before making a decision.  This legislation will help
prevent the abuse of confidentiality agreements and allow victims to
make more informed choices in settlement proceedings. Additionally, the
bill would prohibit confidentiality agreements that prevent a party from
filing a complaint or participating with an investigation with a state,
local or federal agency, or sharing any facts necessary to receive unem-
ployment, Medicaid or other benefits they may be entitled to.

 
PRIOR LEGISLATIVE HISTORY:

2017-2018: A11308A- Referred to Judiciary

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.