settlement and separation agreements

During the height of the #MeToo movement, New York lawmakers passed a host of workplace-related legislation. This included adoption of Section 5-336 of the New York General Obligations Law, which governs the use of nondisclosure provisions in agreements resolving claims of discrimination, harassment, or retaliation. On November 17, 2023, Empire State legislators passed several key amendments (the “Amendment”) to the existing law, which took effect immediately.

By way of background, Section 5-336 was originally passed to protect nondisclosure provisions in agreements resolving claims of sexual harassment. Under Section 5-336 and prior to the Amendment, the law prohibited employers from including nondisclosure provisions in such agreements unless it was the employee’s preference and the employer complied with certain procedural requirements, including: (i) the inclusion of the provision is the employee-complainant’s preference; (ii) employee’s receipt of 21 days to consider the nondisclosure provision, a period that could not be shortened or waived (even if the employee wanted to); (iii) a 7-day revocation period; and (iv) employee’s preference for confidentiality memorialized in a separate written agreement.Continue Reading Reminder to New York employers: Amendments to nondisclosure rules will require updates to separation and settlement agreements

The New York state legislature recently passed two bills providing additional protections to employees asserting unpaid wage claims. These changes are the latest in the state’s overhaul of its employment law landscape this summer. As we discussed in previous posts, New York recently enacted limitations on the use of nondisclosure provisions in settlement and separation agreements, new standards for litigating and defending harassment claims, expanded equal pay protections, a statewide ban on salary history inquiries, and additional changes to the state’s anti-discrimination laws. We will address the two new laws and their implications in this two-part series.

The first bill expands the definition of retaliation under the New York Labor Law. By way of background, New York has long prohibited retaliation against employees who complain of alleged wage violations or otherwise cooperate with state regulators regarding an alleged violation of wage and hour laws. Specifically, an employer cannot “discharge, threaten, penalize, or in any other manner discriminate or retaliate against any employee” for complaining about wage practices such as minimum wage violations, unpaid overtime, improper deductions, and the like.Continue Reading New York Continues Expansion of Worker Wage Protections (Part 1)

Late last week, New York legislators passed a series of sweeping changes to the state’s employment laws. These drastic changes come on the heels of landmark legislation enacted just last year – in April 2018 – aimed at curbing workplace sexual harassment. This year’s laws, which are in part a further response to the #MeToo movement, will impact settlement and separation agreements, litigation of harassment and discrimination claims, hiring practices, and pay policies for employers operating everywhere from Montauk to Buffalo. We will address the myriad of new laws – and how they will affect your business – in this five-part series.

To start, much of the discussion surrounding the new laws has focused – and understandably so – on the lowered legal standard for proving workplace harassment claims. While we will cover this topic in tomorrow’s post, there is another new change that will likely have a greater impact for Empire State businesses on a day-to-day basis: namely, the severe curtailment on the use of nondisclosure provisions in agreements resolving claims of unlawful discrimination, harassment, and retaliation.Continue Reading New York Lawmakers Upend the Employment Law Landscape…Again (Part 1)