The bill prohibits the state, counties, cities and counties, municipalities, school districts, and any of their departments, institutions, or agencies from making it a condition of employment that an applicant for employment or current or past employee or a prospective employee (employee) executes a contract or other form of agreement that prohibits, prevents, or otherwise restricts the employee or prospective employee from disclosing factual circumstances concerning the individual's employee's employment with the government (nondisclosure agreement) unless the nondisclosure agreement is necessary to prevent disclosure of:
The employee's identity, facts that might lead to the discovery of the employee's identity, or factual circumstances relating to the employment that reasonably implicate legitimate privacy interests held by the employee who is a party to the agreement if the employee elects to restrict such disclosure ; orMatters required to be kept confidential by federal law or rules, the state constitution, or state statute, or matters bearing on the specialized details of security arrangements or investigations.Data, information, including personal identifying information, or matters that are required to be kept confidential by federal law or regulations, the state constitution, or state law or rules;Trade secrets or other confidential or sensitive information provided to or made accessible to the employee by a contractor or prospective contractor of the employee's employer during the procurement process or while the contractor is providing goods or services to the employee's employer if the protection of such information is needed to ensure successful procurement or provision of the goods or services; orInformation bearing on the specialized details of security arrangements or investigations.
For an employer that is the state or a department, institution, or agency of the state, a nondisclosure agreement is also allowed if it is necessary to prevent disclosure of:
Nonpublic and confidential labor relations positions and strategies;
Attorney work product;
Vendor lists and vendor preferences; or
State business-related information received from a third party that the third party has designated confidential.
For an employer that is a county, a city and county, a municipality, or a department, institution, or agency of a county, a city and county, or a municipality, a nondisclosure agreement is also allowed if it is necessary to prevent disclosure of:Trade secrets or other confidential or sensitive information provided to or made accessible to the employee by an employer's current or prospective customer, contractor, lessee, lessor, business partner, or affiliate; or
Trade secrets or other confidential or sensitive information provided to or made accessible to the employee by a purchaser or seller of property that is engaged in negotiations or under contract with the employer.
The bill prohibits nondisclosure agreements that prohibit employees of the state, counties, city and counties, municipalities, school districts, or any of their departments, institutions, or agencies from disclosing factual circumstances concerning their employment. To the extent that an employer includes any such provision in any employment contract or agreement, the provision is deemed to be against public policy and unenforceable against a current or former an employee who is a party to the contract or agreement unless the provision is intended to prevent disclosure of:
The employee's identity, facts that might lead to the discovery of the employee's identity , or factual circumstances implicating relating to the employment that reasonably implicate the employee's legitimate privacy interests if the employee elects to restrict such disclosure ; matters required to be kept confidential by federal law or rules, the state constitution, or state statute, or matters bearing on the specialized details of security arrangements or investigations.Data, information, including personal identifying information, or matters that are required to be kept confidential by federal law or regulations, the state constitution, or state law or rules;Trade secrets or other confidential or sensitive information provided to or made accessible to the employee by a contractor or prospective contractor of the employee's employer during the procurement process or while the contractor is providing goods or services to the employee's employer if the protection of such information is needed to ensure successful procurement or provision of the goods or services; or
Information bearing on the specialized details of security arrangements or investigations.
The bill prohibits the state, counties, city and counties, municipalities, and school districts, or any of their departments, institutions, or agencies from taking any retaliatory materially adverse employment-related action, including withdrawal of an offer of employment, against an individual employee on the grounds that the individual employee does not enter into a contract or agreement deemed to be against public policy and unenforceable under the bill. The bill also states that the taking of a materially adverse employment-related action after an employee has refused to enter into such a contract or agreement is prima facie evidence of retaliation and that any person who enforces or attempts to enforce a contract or agreement provision deemed to be against public policy and unenforceable under the bill is liable for the employee's reasonable attorney fees and costs in defending against the action.The bill requires an action to enforce a provision of the bill to be brought in the district court for the district in which the employee is primarily employed. A settlement agreement between an employer that is subject to the bill and an employee of the employer must be signed by both the employer and the employee.
(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)