NY State Senate Bill S7819B

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (5)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 14, 2020	print number 7819b
Jul 14, 2020	amend and recommit to judiciary
Jun 04, 2020	print number 7819a
Jun 04, 2020	amend and recommit to judiciary
Feb 25, 2020	referred to judiciary

Bill Amendments

Original

B (Active)

Original

B (Active)

Co-Sponsors

view additional co-sponsors

S7819 - Details

See Assembly Version of this Bill:: A9993
Current Committee:: Senate Judiciary
Law Section:: General Obligations Law
Laws Affected:: Add §5-338, Gen Ob L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S766, A2079
2023-2024: S14, A306

S7819 - Summary

Makes the release of any claim by an employee, or independent contractor who is a natural person, against an employer, unenforceable if, as a condition of such resolution, the employee or independent contractor is prohibited from applying for, accepting, or engaging in future employment with such employer, or any entity or entities related to such employer.

S7819 - Sponsor Memo

 
BILL NUMBER: S7819

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the general obligations law, in relation to the release
of certain claims by certain employees

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill bans "no-rehire" clauses in settlement contracts between
employers and employees.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill adds a new section 5-338 to General Obligations
Law to provide that no release of a claim made by an employee or inde-
pendent contractor against an employer shall be valid if, as a condition
of such release, the employee or independent contractor is barred from
applying for or accepting future employment with the employer, or any
entities related to the employer.

Section two provides that this act shall take effect on the sixtieth day
after it shall have become law.

 
JUSTIFICATION:

This legislation bans "no rehire" clauses in settlement agreements for
employees or independent contractors that have filed a claim against
their employer. These clauses, which bar an aggrieved employee or
contractor from ever applying or working for the defendant employer
again, were initially created to protect employers from retaliation
claims in the event that an unscrupulous plaintiff would win a settle-
ment, reapply for his or her old job, and then sue the company again
when he or she is not hired. From the perspective of an aggrieved
employee who has been a victim of harassment, however, these clauses are
overly broad in two ways: firstly, they apply to any employer regardless
of size, including multinational corporations with millions of open
positions across the country (and one may in fact argue that larger
employers are more likely to include these provisions in their employ-
ment contracts to begin with). Secondly, no rehire clauses prohibit
employment at any other entity that may purchase or be purchased by the
defendant employer. With more than 12,000 mergers and acquisitions in
2019 alone, these clauses have become de facto non-competes for employ-
ees that are locked out of entire industries.

This legislation would allow New York to follow the lead of other
progressive states such as California and Vermont in rendering settle-
ment contracts unenforceable if they contain no rehire clauses.  The
bill would not, however, prohibit any termination of employment mutually
agreed upon as part of a settlement, nor would it automatically force a
defendant employer to rehire an employee who had previously settled a
case against the employer. The language of the bill simply safeguards
victims' abilities to explore future employment options by barring
employers from including no rehire provisions in their settlement
contracts at the outset.

While New York has made sweeping progress in the fight against workplace
discrimination and harassment with the passage of recent legislation,
the fact that no rehire clauses are so widely used demonstrates that
there is still more work to be done. This legislation if enacted would
make a strong statement that, until every workplace within our state's
borders is 100% free of discrimination, we will not shield harassing
workplaces at the expense of the victims of such harassment.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become law.

S7819 - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7819

                            I N  S E N A T E

                            February 25, 2020
                               ___________

Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN  ACT to amend the general obligations law, in relation to the release
  of certain claims by certain employees

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  general  obligations  law is amended by adding a new
section 5-338 to read as follows:
  § 5-338. RELEASE OF CERTAIN EMPLOYEE CLAIMS.  1. FOR PURPOSES OF  THIS
SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "EMPLOYER" SHALL MEAN ALL EMPLOYERS WITHIN THE STATE.
  (B) "EMPLOYEE" SHALL MEAN ALL EMPLOYEES WITHIN THE STATE.
  2.   NO RELEASE OF ANY CLAIM BY AN EMPLOYEE, OR INDEPENDENT CONTRACTOR
WHO IS A NATURAL PERSON, AGAINST AN EMPLOYER, IS ENFORCEABLE  IF,  AS  A
CONDITION  OF  SUCH  RELEASE,  THE EMPLOYEE OR INDEPENDENT CONTRACTOR IS
PROHIBITED FROM APPLYING FOR, ACCEPTING, OR ENGAGING IN  FUTURE  EMPLOY-
MENT  WITH  SUCH  EMPLOYER,  OR  ANY  ENTITY OR ENTITIES RELATED TO SUCH
EMPLOYER. THE PROVISIONS OF THIS SECTION SHALL NOT PRECLUDE AN  EMPLOYEE
AND EMPLOYER FROM AGREEING TO TERMINATE AN EXISTING EMPLOYMENT RELATION-
SHIP AS PART OF A SETTLEMENT OF A CLAIM.
  §  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15424-02-0

Co-Sponsors

view additional co-sponsors

S7819A - Details

See Assembly Version of this Bill:: A9993
Current Committee:: Senate Judiciary
Law Section:: General Obligations Law
Laws Affected:: Add §5-338, Gen Ob L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S766, A2079
2023-2024: S14, A306

S7819A - Summary

S7819A - Sponsor Memo

 
BILL NUMBER: S7819A

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the general obligations law, in relation to the release
of certain claims by certain employees

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill bans "no-rehire" clauses in settlement contracts between
employers and employees.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill adds a new section 5-338 to General Obligations
Law to provide that no release of a claim made by an employee or inde-
pendent contractor against an employer shall be valid if, as a condition
of such release, the employee or independent contractor is barred from
applying for or accepting future employment with the employer, or any
entities related to the employer.

Section two provides that this act shall take effect on the sixtieth day
after it shall have become law.

 
JUSTIFICATION:

This legislation bans "no rehire" clauses in settlement agreements for
employees or independent contractors that have filed a claim against
their employer. These clauses, which bar an aggrieved employee or
contractor from ever applying or working for the defendant employer
again, were initially created to protect employers from retaliation
claims in the event that an unscrupulous plaintiff would win a settle-
ment, reapply for his or her old job, and then sue the company again
when he or she is not hired. From the perspective of an aggrieved
employee who has been a victim of harassment, however, these clauses are
overly broad in two ways: firstly, they apply to any employer regardless
of size, including multinational corporations with millions of open
positions across the country (and one may in fact argue that larger
employers are more likely to include these provisions in their employ-
ment contracts to begin with). Secondly, no rehire clauses prohibit
employment at any other entity that may purchase or be purchased by the
defendant employer. With more than 12,000 mergers and acquisitions in
2019 alone, these clauses have become de facto non-competes for employ-
ees that are locked out of entire industries.

This legislation would allow New York to follow the lead of other
progressive states such as California and Vermont in rendering settle-
ment contracts unenforceable if they contain no rehire clauses.  The
bill would not, however, prohibit any termination of employment mutually
agreed upon as part of a settlement, nor would it automatically force a
defendant employer to rehire an employee who had previously settled a
case against the employer. The language of the bill simply safeguards
victims' abilities to explore future employment options by barring
employers from including no rehire provisions in their settlement
contracts at the outset.

While New York has made sweeping progress in the fight against workplace
discrimination and harassment with the passage of recent legislation,
the fact that no rehire clauses are so widely used demonstrates that
there is still more to be done. This legislation if enacted would make a
strong statement that, until every workplace within our state's borders
is 100% free of discrimination, we will not shield harassing workplaces
at the expense of the victims of such harassment.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become law.

S7819A - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7819--A

                            I N  S E N A T E

                            February 25, 2020
                               ___________

Introduced  by Sens. GOUNARDES, BIAGGI, GAUGHRAN, HOYLMAN, KRUEGER, LIU,
  MAYER, RIVERA, SANDERS, SKOUFIS -- read twice and ordered printed, and
  when printed to be committed to the Committee on Judiciary --  commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted to said committee

AN ACT to amend the general obligations law, in relation to the  release
  of certain claims by certain employees

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general obligations law is  amended  by  adding  a  new
section 5-338 to read as follows:
  §  5-338. RELEASE OF CERTAIN EMPLOYEE CLAIMS.  1. FOR PURPOSES OF THIS
SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "EMPLOYER" SHALL MEAN ALL EMPLOYERS WITHIN THE STATE.
  (B) "EMPLOYEE" SHALL MEAN ALL EMPLOYEES WITHIN THE STATE.
  2.  NO RELEASE OF ANY CLAIM BY AN EMPLOYEE, OR INDEPENDENT  CONTRACTOR
WHO  IS  A  NATURAL PERSON, AGAINST AN EMPLOYER, IS ENFORCEABLE IF, AS A
CONDITION OF SUCH RELEASE, THE EMPLOYEE  OR  INDEPENDENT  CONTRACTOR  IS
PROHIBITED  FROM  APPLYING FOR, ACCEPTING, OR ENGAGING IN FUTURE EMPLOY-
MENT WITH SUCH EMPLOYER, OR ANY  ENTITY  OR  ENTITIES  RELATED  TO  SUCH
EMPLOYER.  THE PROVISIONS OF THIS SECTION SHALL NOT PRECLUDE AN EMPLOYEE
AND EMPLOYER FROM AGREEING TO TERMINATE AN EXISTING EMPLOYMENT RELATION-
SHIP AS PART OF A SETTLEMENT OF A CLAIM.   IF A RELEASE OF  A  CLAIM  IS
RENDERED  UNENFORCEABLE  PURSUANT  TO  THIS  SECTION, THE EMPLOYER SHALL
REMAIN BOUND BY  ALL  OTHER  PROVISIONS  OF  THE  SETTLEMENT  AGREEMENT,
INCLUDING  THE  OBLIGATION  TO  PROVIDE  THE  FULL  CONSIDERATION TO THE
EMPLOYEE AS SET FORTH IN THE AGREEMENT.
  § 2. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15424-03-0

Co-Sponsors

view additional co-sponsors

S7819B (ACTIVE) - Details

See Assembly Version of this Bill:: A9993
Current Committee:: Senate Judiciary
Law Section:: General Obligations Law
Laws Affected:: Add §5-338, Gen Ob L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S766, A2079
2023-2024: S14, A306

S7819B (ACTIVE) - Summary

S7819B (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S7819B

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the general obligations law, in relation to the release
of certain claims by certain employees

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill bans "no-rehire" clauses in settlement contracts between
employers and employees.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill adds a new section 5-338 to General Obligations
Law to provide that no release of a claim made by an employee or inde-
pendent contractor against an employer shall be valid if, as part of the
agreement resolving the claim, the employee or independent contractor is
barred from applying for or accepting future employment with the employ-
er or any entities related to the employer.

Section two provides that this act shall take effect on the sixtieth day
after it shall have become law and apply to all agreements entered into
after this date.

 
JUSTIFICATION:

This legislation bans "no rehire" clauses in settlement agreements for
employees or independent contractors that have filed a claim against
their employer. These clauses, which bar an aggrieved employee or
contractor from ever applying or working for the defendant employer
again, were initially created to protect employers from retaliation
claims in the event that an unscrupulous plaintiff would win a settle-
ment, reapply for his or her old job, and then sue the company again
when he or she is not hired. From the perspective of an aggrieved
employee who has been a victim of harassment, however, these clauses are
overly broad in two ways: firstly, they apply to any employer regardless
of size, including multinational corporations with millions of open
positions across the country (and one may in fact argue that larger
employers are more likely to include these provisions in their employ-
ment contracts to begin with). Secondly, no rehire clauses prohibit
employment at any other entity that may purchase or be purchased by the
defendant employer. With more than 12,000 mergers and acquisitions in
2019 alone, these clauses have become de facto non-competes for employ-
ees that are locked out of entire industries.

This legislation would allow New York to follow the lead of other
progressive states such as California and Vermont in rendering settle-
ment contracts unenforceable if they contain no rehire clauses.  The
bill would not, however, prohibit any termination of employment mutually
agreed upon as part of a settlement, nor would it automatically force a
defendant employer to rehire an employee who had previously settled a
case against the employer. The language of the bill simply safeguards
victims' abilities to explore future employment options by barring
employers from including no rehire provisions in their settlement
contracts at the outset.


While New York has made sweeping progress in the fight against workplace
discrimination and harassment with the passage of recent legislation,
the fact that no rehire clauses are so widely used demonstrates that
there is still more to be done. This legislation if enacted would make a
strong statement that, until every workplace within our state's borders
is 100% free of discrimination, we will not shield harassing workplaces
at the expense of the victims of such harassment.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become law.

S7819B (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7819--B

                            I N  S E N A T E

                            February 25, 2020
                               ___________

Introduced  by Sens. GOUNARDES, BIAGGI, GAUGHRAN, HOYLMAN, KRUEGER, LIU,
  MAYER, RIVERA, SANDERS, SKOUFIS -- read twice and ordered printed, and
  when printed to be committed to the Committee on Judiciary --  commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted to  said  committee  --  committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN  ACT to amend the general obligations law, in relation to the release
  of certain claims by certain employees

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  general  obligations  law is amended by adding a new
section 5-338 to read as follows:
  § 5-338. RELEASE OF CERTAIN EMPLOYEE CLAIMS.  1. FOR PURPOSES OF  THIS
SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "EMPLOYER" SHALL MEAN ALL PUBLIC AND PRIVATE EMPLOYERS WITHIN THE
STATE.
  (B) "EMPLOYEE" SHALL MEAN ALL PUBLIC AND PRIVATE EMPLOYEES WITHIN  THE
STATE.
  2.  NO  RELEASE OF ANY CLAIM BY AN EMPLOYEE, OR INDEPENDENT CONTRACTOR
WHO IS A NATURAL PERSON, AGAINST AN EMPLOYER, IS ENFORCEABLE IF, AS PART
OF THE AGREEMENT RESOLVING  SUCH  CLAIM,  THE  EMPLOYEE  OR  INDEPENDENT
CONTRACTOR  IS  PROHIBITED  FROM APPLYING FOR, ACCEPTING, OR ENGAGING IN
FUTURE EMPLOYMENT WITH SUCH EMPLOYER, OR ANY ENTITY OR ENTITIES  RELATED
TO  SUCH  EMPLOYER. THE PROVISIONS OF THIS SECTION SHALL NOT PRECLUDE AN
EMPLOYEE AND EMPLOYER FROM AGREEING TO TERMINATE AN EXISTING  EMPLOYMENT
RELATIONSHIP  AS  PART  OF  A SETTLEMENT OF A CLAIM.   IF A RELEASE OF A
CLAIM IS RENDERED UNENFORCEABLE PURSUANT TO THIS SECTION,  THE  EMPLOYER
SHALL  REMAIN BOUND BY ALL OTHER PROVISIONS OF THE SETTLEMENT AGREEMENT,
INCLUDING THE OBLIGATION  TO  PROVIDE  THE  FULL  CONSIDERATION  TO  THE
EMPLOYEE AS SET FORTH IN THE AGREEMENT.
  §  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law and shall apply to all agreements entered into on  and
after such date.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD15424-05-0

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The New York State Senate

senate Bill S7819B

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Your Voice

Actions

Bill Amendments

Co-Sponsors

S7819 - Details

S7819 - Summary

S7819 - Sponsor Memo

S7819 - Bill Text download pdf

Co-Sponsors

S7819A - Details

S7819A - Summary

S7819A - Sponsor Memo

S7819A - Bill Text download pdf

Co-Sponsors

S7819B (ACTIVE) - Details

S7819B (ACTIVE) - Summary

S7819B (ACTIVE) - Sponsor Memo

S7819B (ACTIVE) - Bill Text download pdf

Comments

senate Bill S7819B

Share this bill

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Your Voice

Actions

Bill Amendments

Co-Sponsors

S7819 - Details

S7819 - Summary

S7819 - Sponsor Memo

S7819 - Bill Text download pdf

Co-Sponsors

S7819A - Details

S7819A - Summary

S7819A - Sponsor Memo

S7819A - Bill Text download pdf

Co-Sponsors

S7819B (ACTIVE) - Details

S7819B (ACTIVE) - Summary

S7819B (ACTIVE) - Sponsor Memo

S7819B (ACTIVE) - Bill Text download pdf

Comments