On November 17, 2023, New York State Governor Kathy Hochul signed into law Senate Bill 4516, amending General Obligation Law Section 5-336 (GOL 5-336). As set forth in our earlier alert from when the law was first enacted, Section 5-336 limited employers’ use of nondisclosure provisions in agreements releasing claims involving sexual harassment. The most recent amendments broaden the law’s scope to include all harassment and retaliation claims in addition to discrimination claims and to protect independent contractors; add new limitations on an employer’s ability to use several common enforcement mechanisms for nondisclosure clauses; and permit individuals to waive the 21-day waiting period to sign a preference agreement in connection with a pre-litigation settlement.
Passed in response to the issues and concerns of employees raised in the #MeToo movement, the new law furthers New York State’s effort to create a safe and equitable workplace. The amendments became effective on November 17, 2023 and apply to agreements entered into on or after that date.
Changes to New York Law
Section 5-336’s Protections Now Include all “Harassment and Retaliation” Claims and Apply to Independent Contractors
As originally drafted, Section 5-336(1) barred the use of non-disclosure clauses in settlement agreements releasing claims of sexual harassment, unless the employee expressed a preference for such a clause in a separate written agreement. A 2019 amendment expanded these protections to...
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