Relates to the provision of a waiver before the execution of a confidentiality agreement and requires the waiver to be signed and attached to the confidentiality agreement.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A869
SPONSOR: Simotas (MS) TITLE OF BILL:
An act to amend the general obligations law, in relation to requiring
the provisions of a waiver before the execution of a confidentiality
agreement
PURPOSE:
To require that an individual signing a confidentiality agreement is
fully informed of the rights they will be giving up by signing the
agreement.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 adds a new subdivision 4 to section 5-701 of the general obli-
gations law to require that before a confidentiality agreement is
executed the party is provided a waiver explaining the consequences of
the agreement and provide that a confidentiality agreement shall be void
if it restricts a party from lodging a complaint with the appropriate
local, state or federal agency, participating in an investigation, or
disclosing facts necessary to receive unemployment insurance, Medicaid
or other benefits they may be entitled to.
Section 2 provides the effective date.
JUSTIFICATION:
Entering a confidential settlement agreement often involves giving up
significant legal rights and it is critical that plaintiffs are not
coerced into signing these agreements without fully understanding their
ramifications. Requiring a signed, written waiver will ensure that any
individual considering a confidentiality agreement is informed of the
rights they will be surrendering and is able to assess the potential
costs and benefits before making a decision. This legislation will help
prevent the abuse of confidentiality agreements and allow victims to
make more informed choices in settlement proceedings. Additionally, the
bill would prohibit confidentiality agreements that prevent a party from
filing a complaint or participating with an investigation with a state,
local or federal agency, or sharing any facts necessary to receive unem-
ployment, Medicaid or other benefits they may be entitled to.
PRIOR LEGISLATIVE HISTORY:
2017-2018: A11308-A
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
869
2019-2020 Regular Sessions
IN ASSEMBLY
January 11, 2019
___________
Introduced by M. of A. SIMOTAS, ORTIZ, DINOWITZ, EPSTEIN, STIRPE,
MOSLEY, GOTTFRIED, ABINANTI, D'URSO, WALLACE, QUART, PAULIN,
SEAWRIGHT, LENTOL, M. G. MILLER, RA, CRUZ, THIELE, SIMON, ZEBROWSKI,
CYMBROWITZ, STERN, GLICK, FERNANDEZ, MAGNARELLI -- Multi-Sponsored by
-- M. of A. DenDEKKER -- read once and referred to the Committee on
Judiciary
AN ACT to amend the general obligations law, in relation to requiring
the provisions of a waiver before the execution of a confidentiality
agreement
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision a of section 5-701 of the general obligations
2 law is amended by adding a new paragraph 4 to read as follows:
3 4. Is a confidentiality agreement which has been signed by a party to
4 the contract without he or she first being provided with a waiver
5 explaining the rights he or she would be giving up by signing such
6 agreement. For such waiver to be binding, it shall be signed and
7 attached as an addendum to the confidentiality agreement. Such confi-
8 dentiality agreement shall be void if it prohibits, prevents or other-
9 wise restricts a party from (i) lodging a complaint with the appropriate
10 local, state, or federal agency; (ii) testifying, assisting, or partic-
11 ipating in any manner with an investigation conducted by the appropriate
12 local, state, or federal agency; or (iii) filing or disclosing any facts
13 necessary to receive unemployment insurance, medicaid, or other public
14 benefits such party is entitled to.
15 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01542-01-9
