The bill amends Section 50-4-36 of the New Mexico Statutes to prohibit private employers from requiring prospective, current, or former employees and independent contractors to sign nondisclosure or non-disparagement agreements related to claims of sexual assault, sexual harassment, sexual discrimination, or sexual retaliation. It specifies that while confidentiality provisions may still be included in settlement agreements, they are only permissible under certain conditions, such as relating to the monetary amount of the settlement or at the request of the employee to protect factual information. Additionally, any confidentiality provision that does not meet these criteria is deemed void and unenforceable.

Furthermore, the bill allows plaintiffs in civil actions involving these claims to present evidence of any prior nondisclosure or non-disparagement agreements made by the employer, which may support claims for punitive damages. It also states that any predispute arbitration agreements or joint-action waivers related to these claims will not be enforceable if they were agreed to before the dispute arose. The provisions of this act are set to apply to agreements made on or after June 20, 2025, and are intended to be interpreted broadly to achieve their remedial goals.

Statutes affected:
introduced version: 50-4-36