New York 2025-2026 Regular Session

New York Senate Bill S05404

Introduced
2/21/25  
Refer
2/21/25  

Caption

Prohibits provisions in any waiver, settlement, agreement or other resolution of any claim where the foundation for which is an alleged violation of the labor law or article fifteen of the executive law, that prevent the disclosure of the employee's workplace experience with the employer.

Summary

This bill amends New York’s General Obligations Law section 5-336 to expand limits on nondisclosure and non-disparagement provisions in employment-related settlements and agreements. It would bar employers from including or enforcing terms in waivers, settlements, or other resolutions of claims involving alleged violations of the Labor Law or Article 15 of the Executive Law that prevent an employee from disclosing their workplace experience with the employer. The bill also defines “employer” broadly to include public and private employers, and “employee” broadly to include applicants, former employees, interns, volunteers, and certain independent contractors. The bill preserves some confidentiality protections. It allows agreements to keep settlement dollar amounts confidential and to protect trade secrets, proprietary information, and other confidential information that does not involve the covered workplace claims. It also requires that settlement agreements state in bold language that the employee is entitled to receive a copy of the agreement in their primary language. For future employment-related contracts or applications entered into on or after January 1, 2026, any clause that blocks disclosure of factual information about future alleged labor-law or human-rights violations, or about the employee’s workplace experience, would be void and unenforceable, while still allowing confidentiality provisions that do not cover those claims. The bill’s impact would be to further limit the use of secrecy provisions in workplace dispute resolution and employment paperwork under New York law. It would affect employers, employees, applicants, former employees, interns, volunteers, and certain independent contractors, and would make covered nondisclosure terms unenforceable as against public policy. It would also reinforce employees’ ability to speak with government agencies, regulators, law enforcement, and attorneys, and to disclose information needed to obtain unemployment insurance, Medicaid, or other public benefits. The overall sentiment appears supportive of stronger worker protections and transparency in workplace disputes, as reflected by the bill’s introduction by multiple Senate sponsors and its focus on employee disclosure rights. No committee transcript or vote data was provided, so there is no recorded floor debate or voting history to indicate broader legislative opposition or support beyond the sponsors. The main point of contention suggested by the text is the balance between protecting employees’ ability to speak about workplace experiences and preserving employers’ interests in confidentiality, trade secrets, and settlement finality. The bill narrows confidentiality restrictions significantly, but it still permits secrecy over settlement amounts and non-covered confidential business information, indicating an effort to draw a line between worker speech rights and legitimate employer confidentiality concerns.

Impact

The bill would amend General Obligations Law section 5-336 to make certain nondisclosure and non-disparagement clauses in employment-related settlements and future employment agreements void and unenforceable when they restrict disclosure of an employee’s workplace experience or facts related to alleged Labor Law or Executive Law Article 15 violations. It would also expand the statute’s coverage to a broad class of workers and require primary-language notice in settlement agreements. Employers would retain the ability to protect settlement amounts, trade secrets, and other non-covered confidential information, but they would lose the ability to use confidentiality terms to suppress disclosure of covered workplace claims and experiences.

Sentiment

The bill appears to have a generally pro-worker, transparency-oriented sentiment. Its sponsors are a group of Senate Democrats, and the measure is framed as a worker-protection and anti-secrecy reform. Because no committee transcript or vote record is available, there is no direct evidence of opposition or support from debate, but the text suggests the bill is intended to strengthen employees’ rights to speak about workplace conditions and alleged violations.

Contention

The central contention is whether employers should be allowed to use confidentiality provisions to limit disclosure of workplace experiences in resolving employment disputes. Supporters would likely view the bill as preventing coercive secrecy and protecting workers’ ability to report misconduct, while opponents may argue it reduces settlement flexibility and undermines confidentiality interests. The bill attempts to address employer concerns by preserving confidentiality for settlement amounts and for trade secrets or proprietary information, but it still sharply limits nondisclosure terms tied to labor-law and human-rights claims.

Companion Bills

No companion bills found.

Previously Filed As

NY A02555

Prohibits provisions in any waiver, settlement, agreement or other resolution of any claim where the foundation for which is an alleged violation of the labor law or article fifteen of the executive law, that prevent the disclosure of the employee's workplace experience with the employer.

NY S07437

Prohibits agreements between employers that directly restrict the current or future employment of any employee; allows for a cause of action against employers who engage in such agreements.

NY A07599

Relates to the disclosure of third-party consumer litigation financing agreements in which there is a right to receive compensation or proceeds from the consumer that is contingent on and sourced from any proceeds of the civil action, by settlement, judgment, or otherwise.

NY A01253

Requires employers to annually report to the division of human rights the number of settlements with employees and other individuals performing services in the workplace regarding claims of discrimination on the basis of sex, including verbal and physical sexual harassment; requires the division of human rights to provide an annual report to the governor and the legislature; makes conforming technical changes.

NY S10215

Requires employers to annually report to the division of human rights the number of settlements with employees and other individuals performing services in the workplace regarding claims of discrimination on the basis of sex, including verbal and physical sexual harassment; requires the division of human rights to provide an annual report to the governor and the legislature; makes conforming technical changes.

NY A06480

Establishes the "no severance ultimatums act", which prevents employers from giving coercive ultimatums to employees or former employees relating to severance agreements.

NY S00372

Establishes the "no severance ultimatums act", which prevents employers from giving coercive ultimatums to employees or former employees relating to severance agreements.

NJ A3997

Prohibits class action waivers in residential rental agreements for claims arising from violations of rent control laws.

NJ A2643

Bars public entities and public employees from entering into confidential settlements of claims against them; provides that such settlements constitute public records.

OK SB783

Labor; prohibiting an employer from requiring a nondisclosure agreement from an employee relating to sexual harassment in the workplace. Effective date.

Similar Bills

SC H4800

Prenuptial and Postnuptial Agreements

AZ HB4073

gestational surrogacy; agreements

MI SB0160

Family law: marriage and divorce; uniform premarital and marital agreements act; create. Creates new act.

NC H973

Uniform Restrictive Employment Agreement Act

NC HB973

House Bill 973

CA SB1172

Bradley-Burns Uniform Local Sales and Use Tax Law: tax sharing agreements.

NC H203

Home Warranty Act

NC HB203

House Bill 203