Confidentiality Agreements in Sexual Harassment Settlements: What You Need to Know in NYC

If you settle a sexual harassment claim, you may be asked to sign a confidentiality agreement. These agreements can affect what you are allowed to say about your experience after the case ends. New York law limits when and how confidentiality can be used in sexual harassment settlements. Understanding these rules helps employees make informed choices before signing. This guide explains how confidentiality works, what the law allows, and the steps you should take to protect your rights when negotiating a settlement.

What Is a Confidentiality Agreement?

A confidentiality agreement, often called a nondisclosure agreement (NDA), restricts what one or both parties can say about a settlement or the underlying events. Employers commonly include them in sexual harassment cases to keep details out of the public eye.

A typical clause might prevent the employee from discussing:

• The terms of the settlement, including the amount
• The facts of the harassment or the identities of those involved
• The employer’s internal investigation or disciplinary decisions

While NDAs can protect privacy, they can also silence victims. New York lawmakers responded to this concern by passing laws that limit confidentiality in harassment settlements.

How New York Law Restricts Confidentiality in Harassment Cases

Under New York General Obligations Law §5-336, confidentiality in sexual harassment settlements is only enforceable under strict conditions.

Key rules include:

1. Employee choice–Confidentiality cannot be required unless the employee agrees. The employer must first offer the employee 21 days to consider whether they want a confidentiality clause.
2. Written consent–The employee must confirm, in writing, that they want confidentiality.
3. Revocation period–After signing, the employee has 7 days to revoke the agreement if they change their mind.

If these steps are not followed, the confidentiality provision is invalid.

The law also extends to other forms of discrimination and retaliation. Employers cannot use NDAs to hide misconduct or prevent employees from cooperating with government investigations.

Why These Protections Matter

Before these rules took effect, many settlements forced employees into silence. Victims could not warn others about harassers or discuss their experiences, even with coworkers or future employers.

New York’s confidentiality law balances privacy and transparency. It ensures that:

• Victims choose whether to stay silent or speak out
• Employers cannot automatically impose secrecy
• Public awareness of workplace harassment can improve accountability

Employees now have meaningful control over what they can disclose after a case resolves.

When Confidentiality May Still Be Reasonable

Some employees choose confidentiality for personal or professional reasons. Privacy can protect emotional well-being, reputation, and career prospects. It can also lead to faster settlements since employers often pay more for discretion.

Before agreeing to confidentiality, consider:

• Scope–Does the clause limit only settlement terms or also the underlying facts?
• Duration–Is it permanent or time-limited?
• Exceptions–Are you still allowed to talk with family, a therapist, or government agencies?

A carefully drafted agreement should protect your privacy without violating your rights to report illegal behavior.

What You Can Still Discuss Even After Signing

Even with confidentiality in place, you cannot be prohibited from:

• Reporting potential crimes to law enforcement
• Filing or cooperating with charges before the EEOC, NYC Commission on Human Rights, or NYS Division of Human Rights
• Speaking with your attorney, therapist, or immediate family
• Discussing the situation, if required by subpoena or court order

These carve-outs are protected by state and federal law. Employers who try to silence employees beyond these limits risk legal penalties.

Steps to Protect Yourself Before Signing a Settlement

1. Ask for time to review. New York law gives you 21 days to consider confidentiality terms. Do not feel rushed.
2. Consult an attorney. An employment lawyer can review the language, identify red flags, and negotiate fairer terms.
3. Clarify what you can say. Make sure you understand who you may talk to and what subjects are covered.
4. Keep a copy. Retain all documents in a secure place for future reference.
5. Use your revocation right. If you regret agreeing to confidentiality within 7 days, you can withdraw without penalty.

Having legal guidance ensures you do not unknowingly give up important rights.

How Lipsky Lowe Can Help

At Lipsky Lowe, we represent employees across New York City in sexual harassment and discrimination matters. When you work with us, our attorneys will:

• Review confidentiality clauses line by line
• Advise on whether silence or disclosure serves your best interest
• Ensure compliance with New York’s strict 21- and 7-day rules
• Handle retaliation or breach issues if an employer violates the agreement

Confidentiality can be a useful tool or a serious limitation, depending on how it is written. Before agreeing to stay silent, reach out for a consultation. We will explain your rights, review your agreement, and help you protect both your privacy and your ability to move forward.