On November 17, 2023, Governor Hochul signed Bill A00581, amending NYS' General Obligations Law to prohibit settlements, or other resolution, of sexual harassment claims or any other form of unlawful discrimination from including any term or condition that requires the survivor to pay the defendant liquidated damages if the complainant violates a non-disclosure agreement.
Survivors of sexual harassment and discrimination are often required to sign non-disclosure agreements (NDA) as a condition for receiving compensation for their horror. NDAs frequently include provisions requiring survivors to pay liquidated damages (predetermined damages) if they violate the agreement and these damages can be devastating.
As a result, survivors, who later change their minds or those who were coerced into signing an NDA, face financial hardships for speaking out about their experience. This new law will protect survivors by no longer allowing financial penalties against them for sharing their stories about experiencing harassment and discrimination.
This Bill takes effect immediately and will apply to agreements entered on or after its effectiveness Agreements can no longer require the survivor to forfeit part or all of the consideration for violating an NDA. Additionally, defendants can no longer require survivors to sign an affirmative statement, assertion, or disclaimer stating that they were not subject to discrimination or retaliation.
