New Federal Bill Would Curb NDAs in Employment Contracts
The Speak Out Act would apply to future sexual assault and harassment cases
On Wednesday, Congress introduced a bipartisan bill aimed at stopping employers from forcing workers to remain silent about sexual assault and harassment in the workplace. But there is a pretty big catch. The Speak Out Act only applies to employment contracts, which many employers make new hires sign.
Historically, many companies would make new employees sign NDAs to protect trade secrets, but over the years, the practice has been distorted to ensure secrecy about wrongdoing. It’s essentially saying to a new employee: “We might abuse you here at any time during the course of your employment, and if we do, you cannot talk about it, even if it’s illegal.” Which is pretty crazy, so limiting how NDAs are used at the start of employment makes sense.
As I reported 2 weeks ago, Congress has introduced another bill, called “The Accountability for Workplace Accountability Act”, which would limit the use of NDAs by employers, but only as it relates to reporting to government entities. The bill would also set specific standards around how employers should conduct investigations.
Both bills, while well-meaning, miss the larger problem: When employers attempt to buy silence with settlement agreements. This would get at the heart of the matter: To not allow employers to force workers into silence when abuses arise.
That’s why I recommend that all employers follow the strongest law in the nation, which recently took effect in Washington State.
To give employees complete freedom to speak out about workplace abuses:
Current agreements: End the enforcement of all silencing mechanisms, which includes NDAs, non-disparagement clauses, and confidentiality clauses, across the board in all previously signed employee contracts, dispute settlements, and severance agreements, regardless of the nature of the dispute or settlement and regardless of whether there was a monetary settlement or not.
Future agreements: Take all silencing mechanisms off the table for any future employment contracts, dispute settlements, and severance agreements.
What is stopping your company, non-profit, or institution from doing this right now? If they are not willing, ask why not? What are they trying to hide?
Want help with your toxic workplace or how to avoid NDAs? See my services.