ARTICLE
3 August 2018

Limitations On Nondisclosure Agreements Related To Sexual Harassment Claims Begin On July 11

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Effective July 11, 2018, the law will no longer permit nondisclosure provisions in agreements settling or resolving claims involving sexual harassment ...
United States Employment and HR

Effective July 11, 2018, the law will no longer permit nondisclosure provisions in agreements settling or resolving claims involving sexual harassment that would prevent the disclosure of the underlying facts and circumstances, unless the condition of confidentiality is the complainant's preference. To the extent a confidentiality or nondisclosure provision is used, the provision must be provided to all parties with at least 21 days for them to consider it. If after the 21 days the complainant decides to include such terms, an agreement to that effect should be signed by all parties. The complainant then has seven days to revoke his or her agreement to use the provision, and the agreement shall not become effective until that revocation period has expired. The law does not address whether a complainant may waive any portion of the 21-day review period.

The Bottom Line: This law imposes several new requirements upon New York State employers, and they should review all existing policies and form agreements to ensure that these comport with the new requirements, some of which are effective immediately and others of which will begin to phase in over the coming months. Employers should also conduct training to ensure that all supervisors and employees understand the new provisions and requirements. As with most state law changes, there are nuances to this new law, most of which have not been borne out yet since there have been no regulations or decisions enacted related to these amendments.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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