New Law Changes Rules on Separation Agreements in New York

Legislature Amends Requirements for Confidentiality in Settlement or Separation Agreements New York lawmakers have passed an amendment to the General Obligations Law and Governor Kathy Hochul inked the legislation, which went into effect on November 17, 2023. The amendment addresses the issue of confidentiality in settlements or separation agreements involving allegations of discrimination, harassment or wrongful retaliation in the workplace. The Changes Imposed by the Amendment to the General Obligations Act Under the law as it previously existed, a person who sought to maintain confidentiality in the settlement of a workplace discrimination, harassment or retaliation claim had to meet three specific criteria: They must have attested that they preferred the terms of the agreement to remain confidential The terms of the confidentiality agreement must be in a totally separate document from the settlement agreement There was a 21-day-waiting period before the confidentiality agreement could be signed, and the signature could be withdrawn or rescinded within 7 days The amendment makes a number of significant changes: The 21-day waiting period may be waived (though there’s still a 7-day revocation period) The law has been expanded to include independent contractors who were subject to discrimination, harassment or retaliation at work The provisions of the confidentiality agreement will not prohibit the injured party from disclosing information to the New York Attorney General Any release of claims will be void if: The release contains any language stating that there was no discrimination, harassment or retaliation The agreement mandates payment of a specific amount of damages for breach of the nondisclosure agreement The agreement calls for the forfeiture of all or any portion of...

Stephen D. Hans & Associates–Experienced Employment Defense Counsel

Proven Counsel to Small-to-Medium Businesses in Throughout the NYC Metro Setting up, building and operating a successful business doesn’t just happen. It takes hard work, attention to detail, careful planning and teamwork. That’s always been our approach at Stephen Hans & Associates. Protecting the Rights of Employers in the NYC Metro Area for More than 40 Years Since 1979, the employment lawyers at Stephen Hans & Associates have protected the legal rights of small-to-medium-sized businesses throughout the five boroughs of New York City. We focus our practice on the needs of business owners, handling all matters related to: Labor disputes Employment law controversies Employment law investigations by state and federal governmental agencies We are skilled and experienced trial attorneys with extensive knowledge about matters related to: Allegations of discrimination or harassment in the workplace—We handle all types of Equal Employment Opportunity Commission (EEOC) proceedings, as well as complaints before the New York State Division of Human Rights and the New York State Commission on Human Rights. We also represent employers in discrimination and harassment litigation in state and federal courts. Wage and hour matters—We have represented employers in litigation involving minimum wage and overtime issues, including the defense of individual employee and class action lawsuits Retaliation and whistleblower actions—We have protected the rights of business owners in lawsuits alleging wrongful retaliation Union grievances—We represent management in disputes involving employee grievances, as well as allegations of unfair labor practices In addition to our trial practice, we advise and consult business owners and employers regarding a wide range employment law and human resources issues, such as the development and implementation of...