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The Speak Out Act puts limits on nondisclosure clauses related to sexual harassment cases - Phoenix Business Journal

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A Valley employment law attorney offers tips to businesses in the wake of the passage of the federal Speak Out Act, that prevents the enforcement of nondisclosure agreements (NDAs) in cases of sexual assault or harassment. phoenix

By Helen Holden – Contributing writerOn Dec. 7, 2022, President Joe Biden signed the Speak Out Act into law. This act garnered unusual bipartisan support in Congress, as it was passed by unanimous consent in the Senate.

Passage of the Speak Out Act follows passage earlier this year of another law on a similar subject, the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act. That law limited the enforceability of arbitration agreements entered into prior to a dispute arising where allegations of sexual assault or sexual harassment were made.

Employers may still, to the extent permitted by other law, include nondisclosure and nondisparagement clauses in their employment agreements covering other topics, provided they carve out sexual assault or sexual misconduct. And, because the Speak Out Act applies only to pre-dispute clauses, it means that employers may still settle claims of sexual harassment with agreements that include nondisclosure clauses in Arizona.

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