In a bygone era, parties could settle employment disputes by executing straightforward agreements and disbursing timely payment to the claimant. Now, however, legal developments, spurred in part by the #MeToo movement, have shifted the dynamic and made documenting the settlement of a dispute, particularly one involving claims of discrimination or harassment, much more complicated.

In this article, we explore some of the issues raised by recent changes in the law, as well as some specific requirements regarding waiting periods, tax implications, case dismissal requirements and enforceability under New York and federal law.

Non-Disclosure and Non-Disparagement Provisions

Though it has been standard practice for employers to demand both confidentiality and non-disparagement provisions in settlement agreements, these provisions are now being challenged by both state and federal authorities.