President Biden Signs the Speak Out Act
On December 7, 2022, President Biden signed the Speak Out Act, which limits the enforceability of nondisclosure and nondisparagement clauses in pre-dispute agreements for disputes involving sexual harassment and assault. The law is effective immediately, and may retroactively impact the validity of already existing nondisclosure and nondisparagement agreements.
As we reported in a previous alert, in cases of sexual harassment or sexual assault, the law makes nondisclosure or nondisparagement clauses unenforceable when the agreement was entered into before the dispute arises and the harassment or assault is alleged to violate Federal, Tribal or State law. The law does not impact the enforceability of an agreement to not disclose the facts of a sexual harassment or sexual assault dispute if the agreement is signed after the dispute arises.
If you have any questions about the new law, or need assistance amending your employment agreements, non-disclosure agreements, or separation agreements, please contact Kate Townley at ktownley@fglawllc.com or any other attorney at the Firm.
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