What's happening
This bill prohibits employers from enforcing contract clauses that waive rights or conceal claims related to workplace discrimination, retaliation, or wage issues.
Why it matters
Limits employers' ability to use contracts to silence or restrict employees' legal rights. , making any waiver of rights related to discrimination, wage theft, retaliation, harassment, or violations of public policy automatically void and unenforceable. This helps ensure employees cannot be forced to give up protections as a condition of employment.
Targets confidentiality provisions that conceal details of workplace claims. , declaring them void unless they pertain to the terms of arbitration awards or the settlement amounts. This could lead to more transparency about workplace violations and potentially deter repeat offenders.
Establishes penalties for employers who enforce prohibited contract clauses. , including mandatory payment of the employee’s legal fees and costs. This creates a financial disincentive for employers to include or attempt to enforce such waivers.
Protects employees from retaliation for refusing to sign unlawful waivers. , and gives them the right to sue for damages, injunctions, and attorneys’ fees if such retaliation occurs. This strengthens workers’ ability to assert their rights without fear of workplace repercussions.
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Who cares
Headline styles
Ban Waivers of Worker Rights
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to labor
- Referred to labor
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.
Ban Waivers of Worker Rights
In Assembly Committee · Labor · Sponsor Nily Rozic
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3294
2019-2020 Regular Sessions
IN SENATE
February 5, 2019
Introduced by Sens. HOYLMAN, KRUEGER, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to contract provisions waiving certain substantive and procedural rights
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The labor law is amended by adding a new section 211-b to read as follows:
§ 211-b. Contracts; certain provisions prohibited. 1. A provision in any contract waiving any substantive or procedural right or remedy relating to a claim of discrimination, non-payment of wages or benefits, retaliation, harassment or violation of public policy in employment shall be deemed unconscionable, void and unenforceable, with respect to any such claim arising after the waiver is made. No right or remedy arising under this section, this chapter, common law, any other provision of law or rule of procedure or the constitution shall be prospectively waived. This section shall not render void or unenforceable the remainder of the contract or agreement. The provisions of this subdivision shall not apply to the terms of any collective bargaining agreement between an employer and the bona fide collective bargaining representative of that employer's employees.
2. A provision in any contract or agreement which has the purpose or effect of concealing the details relating to a claim of discrimination, non-payment of wages or benefits, retaliation, harassment or violation of public policy in employment, including claims that are submitted to arbitration, shall be deemed unconscionable, void and unenforceable. The provisions of this subdivision shall not apply to the terms and conditions of an award issued by an arbitrator pursuant to article seventyfive of the civil practice law and rules or the amount of any monetary consideration provided in a settlement.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01174-01-9
S. 3294 2
3. Whoever enforces or attempts to enforce a waiver deemed unconscionable, void or unenforceable under this section shall be liable for reasonable attorney's fees and costs.
4. No person or employer shall take any retaliatory action, including, but not limited to, failure to hire, discharge, suspension, demotion, discrimination in the terms, conditions or privileges of employment, or other adverse action, against a person, because the person does not enter into an agreement or contract that contains a waiver deemed unconscionable, void or unenforceable under this section.
5. A person aggrieved of a violation of this section may, within three years after the violation, institute and prosecute in such person's own name and on such person's own behalf a civil action for torts remedies, injunctive relief, and the costs of litigation and reasonable attorney's fees. The rights and remedies contained in this section shall not be exclusive and shall not preempt other procedures and remedies available under other applicable laws.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivision, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein.
§ 3. This act shall take effect immediately and shall apply to all contracts entered into, renewed, modified or amended on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the labor law, in relation to contract provisions waiving certain substantive and procedural rights
Purpose
This bill would prevent the enforcement of certain employee contract provisions that conceal certain details or waive procedural rights or remedies.
Summary of provisions
Section 1 of the bill adds a new section 211-b to the labor law.
Read the full memo (779 words)
Subdivision 1 of section 211-b provides that contract provisions which waive a procedural right or remedy related to a claim of discrimination, nonpayment of wages or benefits, retaliation, harassment or violation of public policy in employment shall be deemed unconscionable, void and unenforceable.
Subdivision 2 of section 211-b provides that contract provisions which have the purpose or effect of concealing details relating to a claim of discrimination, non-payment of wages or benefits, retaliation, harass- ment or violation of public policy in employment, including claims that are submitted to arbitration, shall be deemed unconscionable, void and unenforceable. An exception to this subdivision is made for the terms and conditions of an award issued by an arbitrator pursuant to section 75 of the civil practice law and rules, or the amount of any monetary consideration provided in a settlement.
Subdivision 3 of section 211-b states that anyone enforcing or attempt- ing to enforce a waiver prohibited under this new section shall be liable for attorney's fees.
Subdivision 4 of section 211-b prohibits any person or employer from taking any retaliatory action - including failure to hire - against a person because the person does not enter into an agreement or contract that contains a waiver prohibited by this section.
Subdivision 5 of section 211-b creates a private right of action allow- ing a person aggrieved by a violation of this new section of law to file a civil action within three years of the violation, in addition to any other rights and remedies available under other applicable laws.
Section 2 of the bill is a severability clause. Section 3 of the bill sets the effective date.
Justification
New York State has a tradition of enacting strong labor and antidiscrim- ination laws to protect employee rights. Attempts by employers to compel employees to waive those protections as a condition of employment, particularly pertaining to sexual harassment and discrimination protections, are unconscionable and should be explicitly prohibited in New York as a matter of public policy.
Recent high-profile reports of sexual misconduct by powerful executives have highlighted the role nondisclosure agreements play in protecting abusive workplace cultures. These agreements are typically reached as part of confidential settlements and include a provision that neither party discuss the details of the case. The secrecy of these agreements perpetuates cultures of sexual harassment and abuse by ensuring that victims stay silent and the public stays uninformed.
The National Labor Relations Board has ruled that "a confidentiality rule prohibiting employees from discussing their sexual harassment complaints among themselves" constitutes an unfair labor practice in violation of the Wagner Act. However, nothing prevents an employer from using a nondisclosure agreement to bar an employee from seeking legal action if he or she is a victim of workplace harassment, discrimination, retaliation, or nonpayment of wages. This bargaining arrangement gives undue power and control to an employer who can continue to engage in misconduct while an employee is left without legal recourse. Further, the agreement conceals a public hazard and allows potentially illegal conduct to continue with future employees in a vicious cycle of power imbalances, victimization, and suppression of legal remedies.
This bill addresses contracts that contain confidentiality clauses, rendering those clauses unconscionable, void, and unenforceable in cases of discrimination, retaliation, or harassment. The bill would also make an employer liable if he or she attempts to enforce the confidentiality clause or if he or she retaliates against an employee for not agreeing to the clause. This liability would include payment of legal fees and costs. Additionally, the bill would give a victim up to three years after a violation to file a claim for a torts remedy, injunction, and fees and costs. Under the bill's provisions, abusive employers would no longer be able to use nondisclosure agreements to conceal illegal behav- ior or purchase the silence of their victims. It is an essential measure to ensure fair labor standards, prevent workplace hazards and miscon- duct, and protect employee rights.
Legislative history
S.6382-A of 2017-2018 (Hoylman): Died in Labor A.8765 of 2017-2018 (Rozic): Died in Labor S.4388-A of 2015-2016 (similar bill): Died on 3rd Reading Calendar
Fiscal implications
None.
Effective date
This act shall take effect immediately and shall apply to all contracts entered into, renewed, modified or amended on or after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.