New York A00293 prohibits the enforcement of claims releases that restrict future employment with the employer or related entities.
New York A00293 amends the general obligations law to make unenforceable any release of claims by employees or independent contractors that include a non-compete clause as a condition of settlement. This means that if an employee or independent contractor agrees to a settlement that includes a restriction on future employment with the employer or related entities, the release of the claim will not be enforceable. The employer remains bound by other provisions of the settlement agreement, including the obligation to provide the full consideration to the employee as set forth in the agreement.
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