BILL NUMBER: S496
SPONSOR: FERNANDEZ
 
TITLE OF BILL:
An act to amend the labor law, in relation to the commissioner's duty to
ensure employers inform employees about certain provisions in employment
contracts
 
PURPOSE OR GENERAL IDEA OF BILL:
To require that employers inform workers that non-disclosure or non-dis-
paragement provisions in their employment contracts cannot prevent them
from speaking with law enforcement, the equal employment opportunity
commission, the division of human rights, a local human rights commis-
sion, or an attorney retained by the employee.
 
SUMMARY OF PROVISIONS:
Section 1 amends section 21 of the labor law by adding a new subdivision
16 to require employers to inform employees signing non-disclosure
agreements that they retain the right to report to law enforcement, the
equal employment opportunity commission, the division of human rights, a
local human rights commission or an attorney retained by the employee.
Section 2 provides the effective date.
 
JUSTIFICATION:
As the use of non-disclosure agreements in employment contracts has
become more widespread, there have been frequent misunderstandings about
the rights of employees to report workplace misconduct. Many workers are
victims or witnesses to sexual harassment believe that if they report to
the police or cooperate with an investigation they could be sued for
violating their nondisclosure agreements. Requiring employers to clarify
the limits on nondisclosure agreements will ensure all workers are aware
of their legal rights and can freely report unlawful acts without fear
of retaliation. This legislation will establish an important safe-guard
against the misuse of nondisclosure agreements as a tool to silence
whistleblowers.
 
PRIOR LEGISLATIVE HISTORY:
2023-2024: S4361 / A6756
2021-2022: S457
2019-2020: S2035 / A1115
2017-2018: A11301
 
FISCAL IMPLICATIONS:
None to the State
 
EFFECTIVE DATE:
This act shall take effect immediately

Statutes affected:
S496: 21 labor law