What's happening
This bill requires parties to receive and sign a waiver explaining their rights before entering confidentiality agreements, and voids agreements that restrict complaints or participation in investigations.
Why it matters
Empowers individuals by ensuring they are fully informed. before signing confidentiality agreements, making it less likely that people unknowingly give up important rights related to reporting misconduct or illegal activity.
Increases transparency and accountability for employers and other parties. who use confidentiality agreements, since agreements that restrict complaints or participation in investigations are rendered unenforceable.
Protects whistleblowers and those seeking public assistance. by guaranteeing that confidentiality agreements cannot prevent someone from accessing unemployment insurance, Medicaid, or other public benefits, or from cooperating with government investigations.
May shift organizational practices. around the use of confidentiality agreements, especially in cases involving harassment, discrimination, or other workplace violations, by making it harder to "buy silence."
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Who cares
Headline styles
Require Waiver Before NDAs
Plain English, a few words. Used as the page title.
Sponsors
History
- Recommit, enacting clause stricken
- Referred to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Require Waiver Before NDAs
In Assembly Committee · Codes · Sponsor Aravella Simotas
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2037
2019-2020 Regular Sessions
IN SENATE
January 18, 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 requiring the provisions of a waiver before the execution of a confidentiality agreement
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision a of section 5-701 of the general obligations law is amended by adding a new paragraph 4 to read as follows:
4. Is a confidentiality agreement which has been signed by a party to the contract without he or she first being provided with a waiver explaining the rights he or she would be giving up by signing such agreement. For such waiver to be binding, it shall be signed and attached as an addendum to the confidentiality agreement. Such confidentiality agreement shall be void if it prohibits, prevents or otherwise restricts a party from (i) lodging a complaint with the appropriate local, state, or federal agency; (ii) testifying, assisting, or participating in any manner with an investigation conducted by the appropriate local, state, or federal agency; or (iii) filing or disclosing any facts necessary to receive unemployment insurance, medicaid, or other public benefits such party is entitled to.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01542-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general obligations law, in relation to requiring the provisions of a waiver before the execution of a confidentiality agreement
Purpose
To require that an individual signing a confidentiality agreement is fully informed of the rights they will be giving up by signing the agreement.
Summary of specific provisions
Section 1 adds a new subdivision 4 to section 5-701 of the general obli- gations law to require that before a confidentiality agreement is executed the party is provided a waiver explaining the consequences of the agreement and provide that a confidentiality agreement shall be void if it restricts a party from lodging a complaint with the appropriate local, state or federal agency, participating in an investigation, or disclosing facts necessary to receive unemployment insurance, Medicaid or other benefits they may be entitled to.
Section 2 provides the effective date.
Justification
Entering a confidential settlement agreement often involves giving up significant legal rights and it is critical that plaintiffs are not coerced into signing these agreements without fully understanding their ramifications. Requiring a signed, written waiver will ensure that any individual considering a confidentiality agreement is informed of the rights they will be surrendering and is able to assess the potential costs and benefits before making a decision. This legislation will help prevent the abuse of confidentiality agreements and allow victims to make more informed choices in settlement proceedings. Additionally, the bill would prohibit confidentiality agreements that prevent a party from filing a complaint or participating with an investigation with a state, local or federal agency, or sharing any facts necessary to receive unem- ployment, Medicaid or other benefits they may be entitled to.
Prior legislative history
2017-2018: A11308A- Referred to Judiciary
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.