Bill > S00413

This bill amends the New York General Obligations Law to protect employees and independent contractors by rendering unenforceable any settlement agreement that prohibits the individual from applying for, accepting, or working for future employment with the same employer or related entities. The bill defines "employer" and "employee" broadly to include both public and private sector workers. Importantly, the legislation does not prevent an employee and employer from mutually terminating an existing employment relationship as part of a settlement. If a release is found unenforceable due to employment restriction clauses, the employer must still honor all other aspects of the settlement, including providing the full agreed-upon compensation. The law will take effect 60 days after becoming official and will apply to all agreements entered into from that date forward, effectively giving employees more flexibility in their future employment opportunities after resolving a workplace claim.

Justice

https://www.nysenate.gov/legislation/bills/2025/S413