New York recently enacted several new employment laws impacting employers in the Empire State. In this alert, we’ve highlighted what employers need to know about these laws.

Inventions assignment limitations

Under A05295, which took effect on September 15, 2023, employers cannot require an employee to assign certain inventions that are made on the employee’s own time and do not use an employer’s equipment, supplies, facilities or trade secret information, unless such inventions either:

1. At the time of conception or reduction to practice, relate to the employer’s business, actual research or development, or anticipated research or development.
2. Result from any work performed by the employee for the employer.

To the extent any agreement purports to require such an assignment, it will be deemed unenforceable. Notably, this law does not create a private right of action. In addition, while A05295 is similar to protections in other states (such as California’s Labor Code Section 2870), it does not affirmatively require employers to provide employees with a specific notice regarding such unassignable inventions.

Limitations on nondisclosure provisions in settlement agreements

Signed into law on November 17, 2023, S4516 makes significant changes to employers’ ability to include nondisclosure provisions in settlement agreements that resolve claims of discrimination or harassment. The law prohibits such settlement agreements from:

• Requiring a complainant to pay an employer...

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