Nondisclosure and Nondisparagement Clauses
- The recently passed Speak Out Act (42 U.S.C. s. 19401), signed into law on December 7, 2022, provides that with respect to disputes involving sexual harassment or sexual assault, nondisclosure and nondisparagement clauses that were agreed to before the dispute arose are not legally enforceable. (42 U.S.C. s. 19403)
- These restrictions apply to agreements between employers and current, former and prospective employees, and independent contractors, and between providers of goods and services and consumers. (42 U.S.C. s. 19401(6))
- On February 21, 2023, the National Labor Relations Board ruled that an employer violated the National Labor Relations Act (29 U.S.C. s. 151) by offering furloughed employees severance conditioned on confidentiality and non-disparagement provisions. McLaren Macomb, Case No. 07-CA-263041 (2/21/2023)