Since 2019, when settling a claim involving discrimination, New York employers have been required to follow a so-called “preference agreement process” to obtain a non-disclosure agreement preventing disclosure of the underlying facts and circumstances of the claim or action. On Friday, Governor Hochul signed legislation revising this process and, importantly, creating serious penalties for employers who include certain provisions in their agreements which penalize employees who speak about harassment, discrimination, or retaliation. This law takes effect immediately.
Read MoreEmployers may recall that the National Labor Relations Board (“NLRB” or the “Board”) recently issued a decision restricting the ability of employers to include broad non-disparagement and confidentiality clauses in severance agreements if such clauses have a reasonable tendency to interfere with, restrain, or coerce employees in the exercise of their rights under Section 7 of the National Labor Relations Act (“NLRA” or the “Act”). Late last month, NLRB General Counsel (“GC”) Jennifer Abruzzo issued Memorandum GC 23-05 (the “Memorandum”), detailing how her office is approaching common questions related to the decision.
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