Bill > A00293

This bill modifies New York's General Obligations Law by adding a new section that prevents employers from including employment restrictions in settlement agreements with employees or independent contractors. Specifically, the bill makes any settlement release unenforceable if it prohibits the employee or independent contractor from applying for, accepting, or working for the same employer or related entities in the future. The law defines "employer" and "employee" broadly to include both public and private sector workers. Importantly, the bill does not prevent employers and employees from mutually agreeing to terminate an existing employment relationship as part of a settlement. If a release is found unenforceable due to these employment restrictions, the employer must still honor all other parts of the settlement agreement, including providing the full agreed-upon compensation. The law will take effect 60 days after becoming law and will apply to all agreements entered into on or after that date, effectively protecting workers from being barred from future employment as a condition of resolving a legal claim against their employer.

Justice

https://www.nysenate.gov/legislation/bills/2025/A293