Relates to the resolution of certain claims by certain employees

• Democratic30

◆ The sponsor's argument

Why Andrew Gounardes says this is needed

This legislation bans "no rehire" clauses in settlement agreements for employees or independent contractors that have filed a claim against their employer. These clauses, which bar an aggrieved employee or contractor from ever applying or working for the defendant employer again, were initially created to protect employers from retaliation claims in the event that an unscrupulous plaintiff would win a settle- ment, reapply for their old job, and then sue the company again when they are not hired. From the perspective of an aggrieved employee who has been a victim of harassment, however, these clauses are overly broad in two ways: firstly, they apply to any employer regardless of size, including multinational corporations with millions of open positions across the country (and one may in fact argue that larger employers are more likely to include these provisions in their employment contracts to begin with). Secondly, no rehire clauses prohibit employment at any other entity that may purchase or be purchased by the defendant employ- er. With more than 12,000 mergers and acquisitions in 2019 alone, these clauses have become de facto non-competes for employees that are locked out of entire industries. This legislation would allow New York to follow the lead of other progressive states such as California and Vermont in rendering settle- ment contracts unenforceable if they contain no rehire clauses. The bill would not, however, prohibit any termination of employment mutually agreed upon as part of a settlement, nor would it automatically force a defendant employer to rehire an employee who had previously settled a case against the employer. The language of the bill simply safeguards victims' abilities to explore future employment options by barring employers from including no rehire provisions in their settlement contracts at the outset. While New York has made sweeping progress in the fight against workplace discrimination and harassment in recent years, the fact that no rehire clauses are so widely used demonstrates that there is still more to be done. This legislation if enacted would make a strong statement that, until every workplace within our state's borders is 100% free of discrimination, we will not shield harassing workplaces at the expense of the victims of such harassment.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.