Prompted by revelations that President Trump, film mogul Harvey Weinstein, former USA Gymnastics team doctor Larry Nassar, and comedian Bill Cosby all entered into settlements that required the plaintiffs to sign nondisclosure agreements, the Legislature is considering S-121/A-1242, which has already passed the Senate by a 34-1 vote and is currently on second reading in the Assembly.
The bill would render unenforceable as against an employee any nondisclosure provision in an employment contract or settlement agreement “which has the purpose or effect of concealing the details relating to a claim of discrimination, retaliation, or harassment.” A committee amendment also provides that “If the employee publicly reveals sufficient details of the claim so that the employer is reasonably identifiable, then the non-disclosure provision shall also be unenforceable against the employer.” An employer who even attempts to enforce these prohibited contractual provisions shall be liable for the employee’s reasonable attorney fees and costs, and the employee is granted a private right of action in Superior Court.
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