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A00869 Summary:

BILL NOA00869
 
SAME ASNo Same As
 
SPONSORSimotas (MS)
 
COSPNSRNolan, Glick, Galef, Paulin, Lupardo, Jaffee, Rosenthal L, Fahy, Solages, Davila, Joyner, Seawright, Simon, Woerner, Hunter, Hyndman, Richardson, De La Rosa, Niou, Pheffer Amato, Wallace, Buttenschon, Cruz, Fernandez, Frontus, Griffin, McMahon, Darling, Reyes, Ortiz, Dinowitz, Epstein, Stirpe, Mosley, Gottfried, Abinanti, D'Urso, Quart, Lentol, Miller MG, Ra, Thiele, Zebrowski, Cymbrowitz, Stern, Magnarelli, Blake, Crespo, Cahill, Wright, Romeo, Bichotte, Walker, Rozic, Gunther, Lifton, Barrett, Arroyo, Cook, Titus, Jean-Pierre, Williams, Jacobson, Walsh
 
MLTSPNSRDenDekker
 
Amd 5-701, Gen Ob L
 
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.
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A00869 Memo:

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.
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A00869 Text:



 
                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
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