New York Assembly Bill A00293

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Refer: 1/7/26

Caption

Makes the release of any claim by an employee, or independent contractor who is a natural person, against an employer, unenforceable if, as a condition of such resolution, the employee or independent contractor is prohibited from applying for, accepting, or engaging in future employment with such employer, or any entity or entities related to such employer.

Summary

Bill A00293 proposes to amend the general obligations law in New York to make any release of claims by employees or independent contractors against their employers unenforceable if it includes a condition that prohibits them from seeking future employment with the employer or related entities. This means that employees cannot be forced to give up their right to apply for jobs with their employer as part of a settlement agreement. The bill aims to protect employees from being barred from future employment opportunities as a result of settling claims against their employers.

Impact

If enacted, this bill will significantly alter the landscape of employment agreements and settlements in New York. It will prevent employers from including clauses in settlement agreements that restrict employees from future employment, thereby enhancing employee rights and job mobility. This change could lead to more favorable conditions for employees when negotiating settlements, as they would not have to forfeit their ability to seek future employment with the same employer.

Sentiment

The sentiment surrounding Bill A00293 appears to be generally supportive among employee advocacy groups, who view it as a necessary measure to protect workers' rights. However, there may be concerns from employers regarding the implications of this bill on their ability to negotiate settlements and manage their workforce, which could lead to pushback from business organizations.

Contention

Notable points of contention include the potential impact on employers' rights to negotiate settlements and the implications for workplace dynamics. Employers may argue that such restrictions could complicate the settlement process and lead to increased litigation, while employee advocates contend that the bill is essential for protecting workers from unfair practices that limit their future employment opportunities.