Raised Bill No. 361, introduced to the General Assembly, aims to regulate the use of nondisclosure agreements (NDAs) in the workplace. The bill defines "employee," "employer," and "volunteer," and sets forth that any agreement provisions between an employer and an employee or volunteer that prevent the disclosure or discussion of conduct believed to be illegal discrimination, harassment, retaliation, wage and hour violations, sexual assault, or against public policy, are void and unenforceable. This includes conduct occurring in the workplace, at work-related events, or between employees and employers, whether on or off employment premises. The bill also specifies that prohibited provisions can be found in various types of agreements, including employment and independent contractor agreements, as well as agreements for compensation in exchange for the release of a legal claim.
The bill further outlines that it is a violation for an employer to discriminate against, retaliate against, or discharge an employee or volunteer for discussing such conduct, or to request or require an employee or volunteer to enter into an agreement with a prohibited provision. Employers are also prohibited from enforcing such provisions. However, the bill does not prohibit agreements protecting trade secrets or confidential information unrelated to illegal acts, nor does it prevent the enforcement of provisions that prohibit the disclosure of settlement amounts. Employers who violate the provisions of this act after its effective date of October 1, 2024, may be liable for actual or statutory damages of at least ten thousand dollars, plus reasonable attorneys' fees and costs. The bill also states that provisions entered into before October 1, 2024, are void only if they were part of the initial or ongoing terms of employment, and does not apply to provisions in settlement agreements. The bill emphasizes that its provisions should be liberally construed to fulfill its remedial purpose.