Senate Bill S5469B

2019-2020 Legislative Session

Relates to violations of nondisclosure agreements in certain settlement agreements

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Archive: Last Bill Status - In Senate Committee Judiciary 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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Bill Amendments

co-Sponsors

2019-S5469 - Details

See Assembly Version of this Bill:
A849
Current Committee:
Senate 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
2021-2022: S738, A5580
2023-2024: S4516, A581

2019-S5469 - 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.

2019-S5469 - Sponsor Memo

2019-S5469 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5469
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                May 1, 2019
                                ___________
 
 Introduced  by  Sen.  BIAGGI -- 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  independent
   consideration required for certain provisions in settlement agreements
   and  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.  The  general  obligations  law is amended by adding a new
 section 5-1117 to read as follows:
   § 5-1117. INDEPENDENT CONSIDERATION  REQUIRED  FOR  SETTLEMENT  AGREE-
 MENTS.  INDEPENDENT  CONSIDERATION  SHALL BE REQUIRED FOR EACH CONFIDEN-
 TIALITY PROVISION INCLUDED IN A SETTLEMENT AGREEMENT. FOR  THE  PURPOSES
 OF  THIS  SECTION,  "INDEPENDENT  CONSIDERATION" SHALL MEAN SOMETHING OF
 VALUE, EITHER A PROMISE, AN ACT OR AN OBJECT THAT IS OFFERED IN EXCHANGE
 FOR EACH CONFIDENTIALITY PROVISION.
   § 2. Section 5-336 of the general obligations law, as added by section
 1 of subpart D of part KK of chapter 57 of the laws of 2018, is  amended
 to read as follows:
   §  5-336.  Nondisclosure agreements. (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
 sexual  harassment, any term or condition that would prevent the disclo-
 sure of the underlying facts and circumstances to the  claim  or  action
 unless the condition of confidentiality is the complainant's preference.
 Any  such  term  or  condition  must be provided to all parties, and the
 complainant shall have twenty-one days to consider such term  or  condi-
 tion.   If   after  twenty-one  days  such  term  or  condition  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

co-Sponsors

2019-S5469A - Details

See Assembly Version of this Bill:
A849
Current Committee:
Senate 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
2021-2022: S738, A5580
2023-2024: S4516, A581

2019-S5469A - 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.

2019-S5469A - Sponsor Memo

2019-S5469A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5469--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                May 1, 2019
                                ___________
 
 Introduced  by Sens. BIAGGI, CARLUCCI, HOYLMAN, KRUEGER, LIU, SALAZAR --
   read twice and ordered printed, and when printed to  be  committed  to
   the  Committee  on  Judiciary  --  committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the general obligations law, in relation to  independent
   consideration required for certain provisions in settlement agreements
   and  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.  The  general  obligations  law is amended by adding a new
 section 5-1117 to read as follows:
   § 5-1117. INDEPENDENT CONSIDERATION  REQUIRED  FOR  SETTLEMENT  AGREE-
 MENTS.  INDEPENDENT  CONSIDERATION  SHALL BE REQUIRED FOR EACH CONFIDEN-
 TIALITY PROVISION INCLUDED IN A SETTLEMENT AGREEMENT. FOR  THE  PURPOSES
 OF  THIS  SECTION,  "INDEPENDENT  CONSIDERATION" SHALL MEAN SOMETHING OF
 VALUE, EITHER A PROMISE, AN ACT OR AN OBJECT THAT IS OFFERED IN EXCHANGE
 FOR EACH CONFIDENTIALITY PROVISION.
   § 2. Section 5-336 of the general obligations law, as added by section
 1 of subpart D of part KK of chapter 57 of the laws of 2018, is  amended
 to read as follows:
   §  5-336.  Nondisclosure agreements. (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
 sexual  harassment, any term or condition that would prevent the disclo-
 sure of the underlying facts and circumstances to the  claim  or  action
 unless the condition of confidentiality is the complainant's preference.
 Any  such  term  or  condition  must be provided to all parties, and the
 complainant shall have twenty-one days to consider such term  or  condi-
 tion.   If   after  twenty-one  days  such  term  or  condition  is  the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

co-Sponsors

2019-S5469B (ACTIVE) - Details

See Assembly Version of this Bill:
A849
Current Committee:
Senate 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
2021-2022: S738, A5580
2023-2024: S4516, A581

2019-S5469B (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.

2019-S5469B (ACTIVE) - Sponsor Memo

2019-S5469B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5469--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                May 1, 2019
                                ___________
 
 Introduced  by  Sens.  BIAGGI,  CARLUCCI,  GAUGHRAN, GOUNARDES, HOYLMAN,
   KRUEGER, LIU, MAYER,  RIVERA,  SALAZAR,  SKOUFIS  --  read  twice  and
   ordered  printed, and when printed to be committed to the Committee on
   Judiciary -- committee discharged, bill amended, ordered reprinted  as
   amended  and  recommitted  to  said  committee  --  recommitted to the
   Committee on Judiciary in accordance with Senate Rule  6,  sec.  8  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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