NY State Senate Bill S4516

Current Bill Status - Passed Senate & Assembly

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

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Actions

view actions (11)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 07, 2023	returned to senate passed assembly
Jun 01, 2023	ordered to third reading rules cal.428 substituted for a581
Mar 22, 2023	referred to judiciary delivered to assembly passed senate
Mar 20, 2023	advanced to third reading
Mar 16, 2023	2nd report cal.
Mar 15, 2023	1st report cal.501
Feb 09, 2023	referred to judiciary

Votes

Co-Sponsors

S4516 (ACTIVE) - Details

See Assembly Version of this Bill:: A581
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
2021-2022: S738, A5580

S4516 (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.

S4516 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S4516

SPONSOR: FERNANDEZ
 
TITLE OF BILL:

An act to amend the general obligations law, in relation to violations
of nondisclosure agreements in certain settlement agreements

 
PURPOSE OR GENERAL IDEA OF BILL:

To prohibit liquidated damages provisions in confidential settlements of
harassment and discrimination claims.

 
SUMMARY OF PROVISIONS:

Section 1 amends section 5-336 of the general obligations law to prohib-
it any settlement or other resolution of a claim involving sexual
harassment or any other form of unlawful discrimination from including
any term or condition that requires the complainant, to pay the defend-
ant liquidated damages in the event that the plaintiff violates a non-
disclosure agreement.

Section 2 provides the effective date.

 
JUSTIFICATION:

Targets of sexual harassment and discrimination are often required to
sign non-disclosure agreements (NDA) in order to receive compensation
for the harm they have experienced. These agreements frequently include
provisions requiring a plaintiff to pay liquidated damages if they
violate the agreement. Thus, survivors who later change their mind or
were originally coerced into signing an NDA face an enormous financial
penalty for speaking about what happened to them. This legislation will
protect survivors from facing financial sanction for sharing their expe-
riences of harassment and discrimination. The bill bars settlements of
harassment and discrimination claims from including any terms or condi-
tions requiring a plaintiff to pay liquidated damages for violating an
NDA. Additionally, agreements may not require the complainant to forfeit
part or all of the consideration for violating the non-disclosure
provisions, nor may they be required to sign an affirmative statement,
assertion, or disclaimer stating that they were not subject to discrimi-
nation or retaliation.

 
PRIOR LEGISLATIVE HISTORY:

2021-2022: S738 / A5580

2019-2020: S5469 / A849

2017-2018: A11353

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to agreements
entered on or after such date.

S4516 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4516
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 9, 2023
                                ___________
 
 Introduced by Sen. FERNANDEZ -- 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
 
   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,
 testifying, assisting, complying with a subpoena from, or  participating
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02527-01-3

 S. 4516                             2
 
 in  any manner with an investigation conducted by the appropriate local,
 state, or federal agency; or (ii) filing or disclosing any facts  neces-
 sary  to receive unemployment insurance, Medicaid, or other public bene-
 fits to which the complainant is entitled.
   2. Notwithstanding any provision of law to the contrary, any provision
 in  a  contract or other agreement between an employer or an agent of an
 employer and any  employee  [or],  potential  employee,  OR  INDEPENDENT
 CONTRACTOR  of that employer entered into on or after January first, two
 thousand twenty, that prevents the  disclosure  of  factual  information
 related  to any future claim of discrimination is void and unenforceable
 unless such provision notifies the employee [or], potential employee, OR
 INDEPENDENT CONTRACTOR that it  does  not  prohibit  [him  or  her]  THE
 COMPLAINANT  from  speaking  with  law enforcement, the equal employment
 opportunity commission, the state division of human rights, THE ATTORNEY
 GENERAL, a local commission on human rights, or an attorney retained  by
 the employee or potential employee.
   3.  NOTWITHSTANDING  ANY  OTHER LAW TO THE CONTRARY, NO RELEASE OF ANY
 CLAIM, THE FACTUAL FOUNDATION  FOR  WHICH  INVOLVES  UNLAWFUL  DISCRIMI-
 NATION,  INCLUDING  DISCRIMINATORY  HARASSMENT, OR RETALIATION, SHALL BE
 ENFORCEABLE, IF AS PART OF THE AGREEMENT RESOLVING SUCH CLAIM:
   (A)  THE  COMPLAINANT  IS  REQUIRED  TO  PAY  LIQUIDATED  DAMAGES  FOR
 VIOLATION OF A NONDISCLOSURE CLAUSE OR NONDISPARAGEMENT CLAUSE;
   (B)  THE COMPLAINANT IS REQUIRED TO FORFEIT ALL OR PART OF THE CONSID-
 ERATION FOR THE AGREEMENT, FOR VIOLATION OF A  NONDISCLOSURE  CLAUSE  OR
 NONDISPARAGEMENT CLAUSE; OR
   (C)  IT  CONTAINS OR REQUIRES ANY AFFIRMATIVE STATEMENT, ASSERTION, OR
 DISCLAIMER BY THE COMPLAINANT THAT  THE  COMPLAINANT  WAS  NOT  IN  FACT
 SUBJECT TO UNLAWFUL DISCRIMINATION, INCLUDING DISCRIMINATORY HARASSMENT,
 OR RETALIATION.
   §  2. This act shall take effect immediately and shall apply to agree-
 ments entered on or after such date.

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The New York State Senate

senate Bill S4516

Sponsored By

Current Bill Status - Passed Senate & Assembly

Your Voice

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Votes

Mar 22, 2023 - floor Vote

Floor Vote: Mar 22, 2023

Mar 14, 2023 - Judiciary committee Vote

Judiciary Committee Vote: Mar 14, 2023

Co-Sponsors

S4516 (ACTIVE) - Details

S4516 (ACTIVE) - Summary

S4516 (ACTIVE) - Sponsor Memo

S4516 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S4516

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Sponsored By

Nathalia Fernandez

Current Bill Status - Passed Senate & Assembly

Your Voice

Actions

Votes

Mar 22, 2023 - floor Vote

Floor Vote: Mar 22, 2023

Mar 14, 2023 - Judiciary committee Vote

Judiciary Committee Vote: Mar 14, 2023

Co-Sponsors

Joseph P. Addabbo Jr

S4516 (ACTIVE) - Details

S4516 (ACTIVE) - Summary

S4516 (ACTIVE) - Sponsor Memo

S4516 (ACTIVE) - Bill Text download pdf

Comments