Bill S496: Employers Inform Employees About Employment Contract Provisions
Summary
New York State Senate Bill S496 requires employers to inform employees that non-disclosure or non-disparagement provisions in employment contracts do not prohibit communication with law enforcement, the EEOC, the state division of human rights, or an attorney. The bill aims to clarify employee rights regarding reporting and legal counsel.
What changed
New York State Senate Bill S496, introduced for the 2025-2026 legislative session, mandates that employers must explicitly inform their employees that certain clauses within employment contracts, specifically non-disclosure and non-disparagement provisions, do not restrict their ability to communicate with law enforcement agencies, the Equal Employment Opportunity Commission (EEOC), the New York State Division of Human Rights, local human rights commissions, or an attorney of their choosing.
This legislation, if passed, will impose a new informational obligation on employers in New York. Compliance officers should review existing employment contracts and develop a communication strategy to ensure employees are adequately informed of these rights. Failure to comply could lead to potential disputes or challenges to contract provisions, though specific penalties are not detailed in the provided summary. The bill is currently in the 'Active' status and has passed the Senate, indicating it is moving through the legislative process.
What to do next
- Review employment contracts for non-disclosure/non-disparagement clauses.
- Develop a communication plan to inform employees of their rights to speak with law enforcement, EEOC, human rights divisions, or legal counsel, notwithstanding contract provisions.
- Consult legal counsel regarding specific notification language and methods.
Source document (simplified)
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Senate
Bill
S496
2025-2026 Legislative Session Relates to the commissioner's duty to ensure employers inform employees about certain provisions in employment contracts
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Sponsored By
Nathalia Fernandez
(D) 34th Senate District
Current
Bill Status
Via
A618
- Passed Senate
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co-Sponsors
Robert Jackson
(D, WF) 31st Senate District
Lea Webb
(D, WF) 52nd Senate District
2025-S496
(ACTIVE)
- Details
See Assembly Version of this Bill: A618 Law Section: Labor Law Laws Affected: Amd §21, Lab L Versions Introduced in Other Legislative Sessions: 2017-2018: A11301
2019-2020: S2035, A1115
2021-2022: S457
2023-2024: S4361, A6756
2025-S496
(ACTIVE)
- Summary
Requires employers to inform their employees that non-disclosure or non-disparagement provisions in their employment contracts do not prohibit them from speaking with law enforcement, the equal employment opportunity commission, the state division of human rights, a local commission on human rights, or an attorney retained by the employee.
2025-S496
(ACTIVE)
- Sponsor Memo
BILL NUMBER: S496
SPONSOR: FERNANDEZ
TITLE OF BILL:
An act to amend the labor law, in relation to the commissioner's duty to
ensure employers inform employees about certain provisions in employment
contracts
PURPOSE OR GENERAL IDEA OF BILL:
To require that employers inform workers that non-disclosure or non-dis-
paragement provisions in their employment contracts cannot prevent them
from speaking with law enforcement, the equal employment opportunity
commission, the division of human rights, a local human rights commis-
sion, or an attorney retained by the employee.
SUMMARY OF PROVISIONS:
Section 1 amends section 21 of the labor law by adding a new subdivision
16 to require employers to inform employees signing non-disclosure
agreements that they retain the right to report to law enforcement, the
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2025-S496
(ACTIVE)
- Bill Text [download pdf](https://legislation.nysenate.gov/pdf/bills/2025/s496)
S T A T E O F N E W Y O R K
496
2025-2026 Regular Sessions
I N S E N A T E
(PREFILED)
January 8, 2025
___________
Introduced by Sens. FERNANDEZ, JACKSON -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to the commissioner's duty to
ensure employers inform employees about certain provisions in employ-
ment contracts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 21 of the labor law is amended by adding a new
subdivision 17 to read as follows:
17. SHALL REQUIRE EMPLOYERS TO INFORM THEIR EMPLOYEES THAT NON-DISCLO-
SURE OR NON-DISPARAGEMENT PROVISIONS IN THEIR EMPLOYMENT CONTRACTS DO
NOT PROHIBIT THEM FROM SPEAKING WITH LAW ENFORCEMENT, THE EQUAL EMPLOY-
MENT OPPORTUNITY COMMISSION, THE STATE DIVISION OF HUMAN RIGHTS, A LOCAL
COMMISSION ON HUMAN RIGHTS, OR AN ATTORNEY RETAINED BY THE EMPLOYEE.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00246-01-5
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