Employment / 1 min read
President Biden signed the Speak Out Act into law last month. The Act outlaws pre-dispute non-disclosure agreements concerning sexual harassment. The result is that any non-disclosure clause within a pre-dispute agreement which prohibits a party from disclosing or discussing a sexual harassment incident or settlement agreement is not enforceable. The Act also bars pre-dispute non-disparagement clauses as they relate to sexual harassment.
The Act does not invalidate non-disclosure or non-disparagement clauses contained in a settlement agreement created after claims of sexual harassment are made. Therefore, employers may still insist on non-disparagement and non-disclosure clauses in settlement agreements relating to sexual harassment charges or lawsuits.
The Speak Out Act follows a law passed earlier this year which prohibits employers from compelling arbitration in sexual harassment and sexual assault cases. The two laws are part of the White House’s aggressive initiative to protect victims of sexual misconduct and to promote fair adjudication and accountability. Employers may see further policy changes in support of this initiative.