Recently, New York Governor Kathy Hochul signed S. 4516, an amendment to New York General Obligations Law Section 5-336. This new law bars settlements of harassment, discrimination, and retaliation claims from including any terms or conditions requiring a complainant (plaintiff) to pay liquidated damages for violating a non-disclosure or non-disparagement clause. Additionally, such settlement or separation agreements may NOT require the complainant to forfeit part or all of the consideration for violating any non-disclosure or non-disparagement provisions, nor may the complainant be required to sign an affirmative statement, assertion, or disclaimer stating that he or she was not subject to discrimination, harassment, or retaliation. Moreover, if a settlement or separation agreement includes any of these terms, the amended law provides that the release shall not be enforceable.
