S 413: Makes the release of any claim by an employee, or independent contractor who is a natural person, against an employer, unenforceable if, as a condition of such resolution, the employee or independent contractor is prohibited from applying for, accepting, or engaging in future employment with such employer, or any entity or entities related to such employer.
The bill aims to amend the general obligations law to regulate the release of certain employee claims against employers. The bill defines an "employer" and an "employee" to include all public and private entities within the state. A release of a claim by an employee or independent contractor against an employer is not enforceable if it includes a provision that prohibits the employee or contractor from applying for or accepting future employment with the employer or related entities. This provision does not preclude an employer and employee from agreeing to terminate an existing employment relationship as part of a settlement. If a release of a claim is rendered unenforceable, the employer remains bound by other provisions of the settlement agreement, including the obligation to provide full consideration to the employee. The bill takes effect on the sixtieth day after it becomes a law…
| Mar. 25, 2026 | referred to judiciary |
| Mar. 25, 2026 | DELIVERED TO ASSEMBLY |
| Mar. 25, 2026 | PASSED SENATE |
| Mar. 23, 2026 | ADVANCED TO THIRD READING |
| Mar. 19, 2026 | 2ND REPORT CAL. |
STATE OF NEW YORK ________________________________________________________________________ 413 2025-2026 Regular Sessions IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sens. GOUNARDES, ADDABBO, BRISPORT, BROUK, HOYLMAN-SIGAL, KRUEGER, LIU, MAYER, MYRIE, RAMOS, RIVERA, SALAZAR, SANDERS, SEPULVE- DA, SKOUFIS, WEBB -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the general obligations law, in relation to the release of certain claims by certain employees The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general obligations law is amended by adding a new 2 section 5-338 to read as follows: 3 § 5-338. Release of certain employee claims. 1. For purposes of this 4 section, the following terms shall have the following meanings: 5 (a) "Employer" shall mean all public and private employers within the 6 state. 7 (b) "Employee" shall mean all public and private employees within the 8 state. 9 2. No release of any claim by an employee, or independent contractor 10 who is a natural person, against an employer, is enforceable if, as part 11 of the agreement resolving such claim, the employee or independent 12 contractor is prohibited from applying for, accepting, or engaging in 13 future employment with such employer, or any entity or entities related 14 to such employer. The provisions of this section shall not preclude an 15 employee and employer from agreeing to terminate an existing employment 16 relationship as part of a settlement of a claim. If a release of a 17 claim is rendered unenforceable pursuant to this section, the employer 18 shall remain bound by all other provisions of the settlement agreement, 19 including the obligation to provide the full consideration to the 20 employee as set forth in the agreement. 21 § 2. This act shall take effect on the sixtieth day after it shall 22 have become a law and shall apply to all agreements entered into on and 23 after such date. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00167-01-5