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A new law, known as the Speak Out Act, passed Congress with bipartisan support and is expected to be quickly signed into law by President Biden. This new law will prohibit employers or individual managers from forcing female employees to sign any non-disclosure provision saying they will remain silent if they become a victim of sexual harassment and/or assault. This gives employers further incentive to curb unprofessional and illegal workplace behavior. The law will take immediate effect upon Biden’s signature, rendering void any noncompliant non-disclosure agreement (NDA) or non-disparagement agreement signed thereafter. The law will prevent courts from enforcing certain NDAs in “disputes” where a party is alleging sexual assault or sexual harassment.
The law also applies to “non-disparagement clauses” in sexual assault or harassment disputes – any contractual provision that requires any party not to make a negative statement about another party that relates to the contract, agreement, claim, or case. The Speak Out Act only prevents the enforcement of those non-disclosure and non-disparagement clauses entered into before a dispute arises. Under the new law, no such agreement shall be enforceable by any court in any case alleging a violation of state or federal law. The new law will not, however, prevent employers from entering into standard confidentiality agreements with claimants upon settlement of assault or harassment claims or demands. The law specifically permits employers to protect trade secrets and proprietary information through NDAs. Any such agreements should be carefully crafted as to not violate this new law and potentially get stricken down as overbroad.
This is the second #MeToo-inspired bill to be passed by Congress this year. In February, federal lawmakers passed the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act,” which prevents employers from enforcing pre-dispute arbitration agreements without the employee’s consent in cases involving sexual harassment and sexual assault.
Employers should review all of their pre-hire and standard employment agreements to ensure none serve as gags on the types of disclosure intended to be protected by this law. To the extent you deploy an independent contractor workforce, check those agreements for compliance as well.
The best way to avoid any issues related to confidentiality is to prevent workplace harassment or assault in the first place. If you need any assistance in reviewing the steps you should take to ensure a harassment-free workplace, please contact
A new law, known as the Speak Out Act, passed Congress with bipartisan support and is expected to be quickly signed into law by President Biden. This new law will prohibit employers or individual managers from forcing female employees to sign any non-disclosure provision saying they will remain silent if they become a victim of sexual harassment and/or assault. This gives employers further incentive to curb unprofessional and illegal workplace behavior. The law will take immediate effect upon Biden’s signature, rendering void any noncompliant non-disclosure agreement (NDA) or non-disparagement agreement signed thereafter. The law will prevent courts from enforcing certain NDAs in “disputes” where a party is alleging sexual assault or sexual harassment.
The law also applies to “non-disparagement clauses” in sexual assault or harassment disputes – any contractual provision that requires any party not to make a negative statement about another party that relates to the contract, agreement, claim, or case. The Speak Out Act only prevents the enforcement of those non-disclosure and non-disparagement clauses entered into before a dispute arises. Under the new law, no such agreement shall be enforceable by any court in any case alleging a violation of state or federal law. The new law will not, however, prevent employers from entering into standard confidentiality agreements with claimants upon settlement of assault or harassment claims or demands. The law specifically permits employers to protect trade secrets and proprietary information through NDAs. Any such agreements should be carefully crafted as to not violate this new law and potentially get stricken down as overbroad.
This is the second #MeToo-inspired bill to be passed by Congress this year. In February, federal lawmakers passed the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act,” which prevents employers from enforcing pre-dispute arbitration agreements without the employee’s consent in cases involving sexual harassment and sexual assault.
Employers should review all of their pre-hire and standard employment agreements to ensure none serve as gags on the types of disclosure intended to be protected by this law. To the extent you deploy an independent contractor workforce, check those agreements for compliance as well.
The best way to avoid any issues related to confidentiality is to prevent workplace harassment or assault in the first place. If you need any assistance in reviewing the steps you should take to ensure a harassment-free workplace, please contact one of our attorneys at Schwartz Rollins, or our legal assistant, Vicki Perry at 404.844.4130.