Protecting Employers Since 1985
Federal Law – “Speak Out Act!” – Limits the Use of Non-Disclosure and Non-Disparagement Provisions in Pre-Dispute Employee/Employer Agreements
Effective Date: President Biden signed it into law on December 7, 2022.
What It Does: Renders unenforceable non-disclosure and non-disparagement provisions in employee/employer agreements.
Type of Agreements: Related to allegation of sexual assault and/or sexual harassment and that are entered into “before the dispute arises.”
“Before the Dispute Arises” Defined: Before a lawsuit is filed.
Size of Employers Affected: All employers.
The law is a trend under federal and state laws to limit the use and/or enforcement of confidentiality and non-disparagement provisions in settlement agreements.
Employers should review their employment agreements, employee handbooks, confidentiality agreements, and separation agreements to ensure compliance with the law.
Questions? Contact attorney Anthony J. Caruso, Jr., in our St. Charles office at (630) 377-1554 of by email at ancaruso@wesselssherman.com
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