Extension of Statute of Limitations
On November 17, 2023, Governor Hochul signed State Assembly Bill A00501 into law, extending the statute of limitations for discrimination and retaliation claims brought under the New York State Human Rights Law (“NYSHRL”) from one year to three years. New York law previously set a three-year statute of limitations period for claims involving sexual harassment in employment, and a one-year limitations period for other claims brought under the NYSHRL. The new law will go into effect on February 15, 2024, 90 days after signing, and will apply prospectively “to all unlawful discriminatory practice claims arising on or after such effective date.”
Amendments to Laws Governing Resolution of Claims
Governor Hochul also signed Senate Bill S4516 into law, which amends Section 5-336 of the New York General Obligations Law. The amendment applies to settlement agreements entered into by employers that concern claims of discrimination, harassment, or retaliation. The law went into effect immediately upon signing.
Senate Bill S4516:
- Prohibits settlement agreements that resolve claims—the factual foundation for which involve “unlawful discrimination, including discriminatory harassment, or retaliation”—from requiring complainants to “forfeit all or part of the consideration for the agreement” or “pay liquidated damages for violation of a nondisclosure clause or nondisparagement clause.” Thus, in the event of a breach by the complainant, employers likely will be limited to recovery of the extent of damages caused by the breach. The bill’s sponsors stated that the amendment will “protect survivors from facing financial sanction for sharing their experiences of harassment and discrimination.” The bill similarly prohibits agreements from including “any affirmative statement, assertion, or disclaimer by the complainant that the complainant was not in fact subject to unlawful discrimination…” There is some ambiguity in the statute as to whether these changes apply only in situations where a complainant has threatened to bring or has actually filed a claim, or whether it also governs separation agreements that include a general release of claims.
- Amends Section 5-336 of the General Obligations Law to permit complainants entering into pre-litigation settlement agreements that include confidentiality provisions to confirm their preference for confidentiality within 21 days after receiving the confidentiality provision. Since 2018, complainants have not been permitted to confirm their preference for confidentiality for at least 21 days after receiving the confidentiality provision. The new law maintains the requirement that complainants receive at least 21 days to consider such term or condition and at least seven days following the execution to “revoke the agreement.” However, the amendment does not apply to Section 5003-b of the Civil Practice Law and Rules, which continues to require that complainants wait at least 21 days to confirm their preference for confidentiality in any settlement agreement resolving a claim that has been filed in court.
- Applies to “independent contractors” a provision that previously barred contracts with employees and prospective employees that prevent “the disclosure of factual information related to any future claim of discrimination” unless the provision notifies the complainant that it does not prevent communication with “law enforcement, the equal employment opportunity commission, the state division of human rights, the attorney general, a local commission on human rights, or an attorney…”