New York Law Confidentiality Agreements

The updated FAQs remind employers of this recent change in the law that invalidates such an agreement «to the extent that it prohibits or otherwise prohibits or otherwise prohibits a complainant from presiding, testifying, attending, responding to a subpoena or participating in some way in an investigation by the relevant local, governmental or federal authority; or (ii) the presentation or disclosure of facts necessary to obtain unemployment insurance, Medicaid or other public benefits to which the complainant is entitled.» These clarifications should therefore be included in the confidentiality clauses. The restrictions on confidentiality agreements, which now deal with claims of non-discrimination and retaliation (not just sexual harassment claims), came into effect on October 11, 2019. Employers remain free to include provisions in transaction agreements requiring non-disclosure of the fact or amount of a transaction; the law only covers NOAs that prohibit disclosure of the facts and circumstances that under the basis of a claim of discrimination. While FAQs had previously put in place a three-step procedure to remind that confidentiality was the complainant`s preference for sexual harassment allegations, the manual was extended to claims of discrimination. In particular, the FAQs require that the time or condition of confidentiality «be made available to all parties in plain English and, if applicable, the primary language of the person who complained and the person who complained has 21 days from the date on which such a clause or condition is mentioned to reflect that clause or condition.» If, after 21 days, such a clause or condition is the preference of the person who complained, the preference must be included in an agreement signed by all parties to commemorate that preference. For 7 days after the execution of the contract containing the clause or condition, the person who complained can revoke the contract and it does not become effective or enforceable until after the withdrawal period has expired. It is not possible to waive the 21-day or 7-day period, and these periods cannot overlap. Last June, the New York State Legislature passed a law amending New York`s anti-discrimination and sexual harassment legislation, and on August 12, 2019, Governor Cuomo signed to Seran. (See our previous notifications here and here). Recently, the New York State Division of Human Rights (the «Division») issued additional guidelines in the form of FAQs on two aspects of the law: (1) the necessary disclosure; and (2) confidentiality agreements governing rights to discrimination. In particular, the law does not prohibit the confidentiality of the amount of the transaction or the NDA itself.

Are there confidentiality agreements in New York? With respect to restrictive alliances, New York State courts generally tend to protect an individual`s employment prospects and livelihoods and to force a worker`s silence.