Signed by Governor Janet Mills

Vote Smart's Synopsis:

Vote on a motion to adopt an "ought to pass as amended" report for a bill that prohibits certain non-disclosure agreements in the workforce.

Highlights:

• Prohibits employers from requiring employees, interns, or job applicants to enter into any contract or agreement that limits or waives their right to report or discuss unlawful discrimination occurring in the workplace or at work events (Sec. 1).

• Prohibits an employer from requiring an employee, intern, or job applicant to enter into a settlement, separation, or severance agreement that includes any of the following provisions (Sec. 1):

• One that limits the individual’s right to report, testify, or provide evidence to a federal or state agency which enforces employment and/or discrimination laws;

• One that prevents the individual from testifying or providing evidence in a federal or state court proceeding in response to legal processes; and/or

• One that restricts an individual from reporting conduct to a law enforcement agency.

• Authorizes a settlement, separation, or severance agreement to include a provision that prevents the disclosure of factual information about a claim of unlawful employment discrimination, as long as the following are the case (Sec. 1):

• The provision expressly provides for separate monetary considerations and anything of value that the employee, intern, or job applicant is entitled;

• The provision applies to all parties of the agreement;

• The provision makes it clear that individuals retain the right to report to federal and state agencies and testify in court; and

• The employer keeps a copy of the agreement for 6 years after formation.

• Specifies that non-disclosure agreements may still be used to protect against disclosure of proprietary information and trade secrets (Sec. 1).

• Specifies that an employer violating the above provisions is guilty of a civil violation and subject to up to $1,000 in fines (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote on a motion to adopt an "ought to pass as amended" report for a bill that prohibits certain non-disclosure agreements in the workforce.

Highlights:

• Prohibits employers from requiring employees, interns, or job applicants to enter into any contract or agreement that limits or waives their right to report or discuss unlawful discrimination occurring in the workplace or at work events (Sec. 1).

• Prohibits an employer from requiring an employee, intern, or job applicant to enter into a settlement, separation, or severance agreement that includes any of the following provisions (Sec. 1):

• One that limits the individual’s right to report, testify, or provide evidence to a federal or state agency which enforces employment and/or discrimination laws;

• One that prevents the individual from testifying or providing evidence in a federal or state court proceeding in response to legal processes; and/or

• One that restricts an individual from reporting conduct to a law enforcement agency.

• Authorizes a settlement, separation, or severance agreement to include a provision that prevents the disclosure of factual information about a claim of unlawful employment discrimination, as long as the following are the case (Sec. 1):

• The provision expressly provides for separate monetary considerations and anything of value that the employee, intern, or job applicant is entitled;

• The provision applies to all parties of the agreement;

• The provision makes it clear that individuals retain the right to report to federal and state agencies and testify in court; and

• The employer keeps a copy of the agreement for 6 years after formation.

• Specifies that non-disclosure agreements may still be used to protect against disclosure of proprietary information and trade secrets (Sec. 1).

• Specifies that an employer violating the above provisions is guilty of a civil violation and subject to up to $1,000 in fines (Sec. 1).

Full Bill Text