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This entry was published on 2023-11-26
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SECTION 5-336
Nondisclosure agreements
General Obligations (GOB) CHAPTER 24-A, ARTICLE 5, TITLE 3
§ 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,
agreement 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
executive 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 confidentiality is the complainant's
preference, such preference 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
in any manner with an investigation conducted by the appropriate local,
state, or federal agency; or (ii) filing or disclosing any facts
necessary to receive unemployment insurance, Medicaid, or other public
benefits 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, 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, potential employee, or independent
contractor that it does not prohibit 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
discrimination, 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
consideration 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.