Senate Bill S738

2021-2022 Legislative Session

Relates to violations of nondisclosure agreements in certain settlement agreements

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Assembly Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2021-S738 (ACTIVE) - Details

See Assembly Version of this Bill:
Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Amd §5-336, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2015-2016: S4407
2017-2018: S550, A11353
2019-2020: S1018, S5469, S5649, A849
2023-2024: S4516, A581

2021-S738 (ACTIVE) - Summary

Prohibits settlement agreements in any claim involving sexual harassment or any other form of discrimination prohibited by law from containing any condition that requires the complainant to pay the defendant liquidated damages in the event that the plaintiff violates any nondisclosure agreement included in such settlement agreement.

2021-S738 (ACTIVE) - Sponsor Memo

2021-S738 (ACTIVE) - Bill Text download pdf

                     S T A T E   O F   N E W   Y O R K
                        2021-2022 Regular Sessions
                             I N  S E N A T E
                              January 6, 2021
   MAYER, RIVERA, SALAZAR, SKOUFIS -- 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  violations
   of nondisclosure agreements in certain settlement agreements
   Section 1. Section 5-336 of the general obligations law, as amended by
 chapter 160 of the laws of 2019, is amended to read as follows:
   § 5-336. Nondisclosure agreements. 1. (a)  Notwithstanding  any  other
 law  to  the contrary, no employer, its officers or employees shall have
 the authority to include or agree to include in any  settlement,  agree-
 ment  or other resolution of any claim, the factual foundation for which
 involves discrimination, HARASSMENT, OR  RETALIATION,  in  violation  of
 laws  prohibiting discrimination, INCLUDING DISCRIMINATORY HARASSMENT OR
 RETALIATION, including but not limited to, article fifteen of the execu-
 tive law, any term or condition that would prevent the disclosure of the
 underlying facts and circumstances to the claim  or  action  unless  the
 condition of confidentiality is the complainant's preference.
   (b)  Any  such  term  or  condition must be provided in writing to all
 parties in plain English, and, if applicable, the  primary  language  of
 the complainant, and the complainant shall have UP TO twenty-one days to
 consider  such term or condition. If [after twenty-one days such term or
 condition] CONFIDENTIALITY is the complainant's preference, such prefer-
 ence shall be memorialized in an agreement signed by all parties. For  a
 period of at least seven days following the execution of such agreement,
 the  complainant  may  revoke the agreement, and the agreement shall not
 become effective or be enforceable  until  such  revocation  period  has
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.


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