{"id":11022,"date":"2026-06-23T08:43:13","date_gmt":"2026-06-23T08:43:13","guid":{"rendered":"https:\/\/usatrustedlawyers.com\/blog\/new-york-state-passes-significant-sexual-harassment-legislation\/"},"modified":"2026-06-23T08:43:13","modified_gmt":"2026-06-23T08:43:13","slug":"new-york-state-passes-significant-sexual-harassment-legislation","status":"publish","type":"post","link":"https:\/\/usatrustedlawyers.com\/blog\/new-york-state-passes-significant-sexual-harassment-legislation\/","title":{"rendered":"New York State Passes Significant Sexual Harassment Legislation"},"content":{"rendered":"\n
\n SUMMARY<\/strong>
The 2018-2019 State Budget that was recently signed into law by New York Governor Andrew Cuomo contains several significant provisions addressing workplace sexual harassment.\u00a0 Those changes include:\u00a0 1)\u00a0a ban on pre-dispute agreements requiring arbitration to resolve sexual harassment claims \u201cexcept where inconsistent with federal law\u201d (and as noted below, the Federal Arbitration Act may preempt this prohibition); 2)\u00a0a requirement that any confidentiality provision in a sexual harassment settlement agreement be at the \u201ccomplainant\u2019s preference,\u201d that such preference be memorialized in the settlement agreement, and that the complainant be afforded a 21-day consideration period and seven-day revocation period for any such agreement; 3)\u00a0a provision extending employer liability for sexual harassment experienced by independent contractors and other non-employees in an employer\u2019s workplace; 4)\u00a0a requirement that all New York State employers (regardless of size) adopt anti-sexual harassment policies and training programs to be promulgated by the Department of Labor or that otherwise meet or exceed certain specified legislative requirements; and 5)\u00a0a requirement that all State contractors certify when submitting a bid for a State contract that they have adopted anti-sexual harassment policies and training programs.\u00a0 The Bill also requires State officials to reimburse the State or any State agency for amounts paid to a plaintiff based on a finding of intentional wrongdoing in claims of sexual harassment.<\/p>\n

PROVISIONS<\/strong>
Prohibition on Use of Pre-Dispute Arbitration Agreements to Resolve Sexual Harassment Claims.<\/strong>\u00a0 The Bill adds Section 7515 to the New York Civil Practice Law and Rules to provide that no written contract shall contain \u201cany clause or provision\u00a0.\u00a0.\u00a0.\u00a0[requiring] that the parties submit to mandatory arbitration to resolve any allegation or claim of an unlawful discriminatory practice of sexual harassment,\u201d and that any \u201cmandatory arbitration clause\u201d with respect to such claims is null and void.\u00a0 The ban is effective as to contracts entered into on or after July 11, 2018, 90 days after the Bill\u2019s enactment into law.\u00a0 A \u201cmandatory arbitration clause\u201d is defined to include contractual language to the \u201ceffect that the facts found or determination made by the arbitrator or panel of arbitrators in its application to a party alleging an unlawful discriminatory practice based on sexual harassment shall be final and not subject to independent court review.\u201d\u00a0 The Bill explicitly provides that the ban on mandatory arbitration does not apply as to non-sexual harassment claims and that it does not affect the enforceability of agreements to arbitrate other claims.\u00a0 The Bill applies only to pre-dispute arbitration agreements; parties remain free to agree to arbitration claims after a dispute arises.\u00a0 Collective bargaining agreements may continue to require arbitration of sexual harassment claims.1<\/sup> And, as described below, the prohibition may be preempted by the Federal Arbitration Act.<\/p>\n

New Requirements for Confidential Treatment of Sexual Harassment Settlements.<\/strong>\u00a0 The Bill adds Section 5-336 to the New York General Obligations Law and Section 5003-b to the New York Civil Practice Law and Rules to provide that, in actions \u201cthe factual foundation for which involves sexual harassment,\u201d no private settlement agreement or settlement resolving a legal claim may include a confidentiality provision unless \u201cthe condition of confidentiality is the complainant\u2019s preference\u201d and the complainant\u2019s preference is memorialized in the written agreement.\u00a0 In addition, the Bill adopts the time periods for review and revocation required by the Age Discrimination in Employment Act for agreements with persons over age\u00a040: i.e.<\/em>, the complainant must be given at least 21 days to consider an agreement with a confidentiality provision, and a seven-day revocation period following execution of the agreement.\u00a0 These provisions likewise become effective on July 11, 2018.2<\/sup><\/p>\n

Extension of Employer Liability for Sexual Harassment to Independent Contractors in the Workplace. <\/em><\/strong>\u00a0The Bill adds a new section 296-d to the New York Executive Law to provide that \u201c[i]t shall be an unlawful discriminatory practice for an employer to permit sexual harassment of non-employees in its workplace\u201d in the event the employer, its agents or supervisors \u201cknew or should have known\u201d that its \u201ccontractor, subcontractor, vendor, consultant or other person providing services pursuant to a contract in the workplace\u201d was subjected to sexual harassment in the workplace and \u201cthe employer failed to take immediate and appropriate corrective action.\u201d\u00a0 The Bill provides that respondeat superior<\/em> principles\u2014e.g.<\/em>, the extent of the employer\u2019s control over the alleged perpetrator\u2014are relevant to considerations of liability for acts of non-employees.3<\/sup><\/p>\n

Mandatory Sexual Harassment Prevention Policy and Training.<\/strong><\/em>\u00a0 The Bill mandates that the New York Department of Labor (the \u201cDOL\u201d), in consultation with the Division of Human Rights (the \u201cDHR\u201d), create and publish a model sexual harassment prevention guidance document and sexual harassment prevention policy.\u00a0 That policy at a minimum must: <\/p>\n