In a recent legislative move, New York’s Governor Kathy Hochul has sanctioned a law creating significant changes to settlement agreements pertaining to claims of harassment, discrimination, and retaliation in the workplace. This legislation could greatly affect both employers and employees and the way such cases are handled in future disputes.
The particularly notable aspect of this law is its impact on liquidated damages. Prior to this legislation, employers often included terms within settlement agreements that required the claimant to pay the defendant predetermined damages if they breached any non-disclosure agreements (NDAs) related to the settlement. This structure was commonly used as a means of ensuring silence about the discriminating behavior and the agreement reached.
However, the new law forbids the inclusion of any term or condition within the resolution of a claim involving sexual harassment or any other type of unlawful discrimination that would require the complainant to pay the defendant liquidated damages in the event of a breach. This change is a significant protection for the victims of such workplace behaviors, allowing them future recourse should they feel the need or desire to disclose the nature of their complaints eventually.
The legal professionals involved in such cases should take careful note of these changes, as they represent a marked shift within the legal landscape of workplace discrimination law. Previously existing protections for defendants within settlement agreements have been significantly curtailed, which may necessitate different strategies in future case resolutions and settlement structures.
To learn more about these developments in New York’s legal system and their implications for settlement agreements, visit the detailed report published on JD Supra written by professionals at Proskauer – Law and the Workplace.