Assembly Bill A581

Signed By Governor
2023-2024 Legislative Session

Relates to violations of nondisclosure agreements in certain settlement agreements

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Sponsored By

Current Bill Status Via S4516 - Signed by Governor


  • 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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2023-A581 (ACTIVE) - Details

See Senate Version of this Bill:
S4516
Law Section:
General Obligations Law
Laws Affected:
Amd §5-336, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2015-2016: S4407
2017-2018: A11353, S550
2019-2020: A849, S1018, S5469, S5649
2021-2022: A5580, S738

2023-A581 (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.

2023-A581 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    581
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2023
                                ___________
 
 Introduced  by  M. of A. ROZIC, MAMDANI, BICHOTTE HERMELYN, FAHY, GONZA-
   LEZ-ROJAS, PAULIN, BURDICK, L. ROSENTHAL,  KELLES  --  read  once  and
   referred to the Committee on Judiciary
 
 AN  ACT  to amend the general obligations law, in relation to violations
   of nondisclosure agreements in certain settlement agreements

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   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
 expired.
   (c) Any such term or condition shall be void to  the  extent  that  it
 prohibits  or  otherwise restricts the complainant from: (i) initiating,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02527-01-3
              

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