"New 'Speak Out' Act Might Invalidate Your Company’s Contracts

The Speak Out Act is a brand new federal law in the United States that seeks to prohibit employers from enforcing non-disclosure agreements (NDAs) and non-disparagement agreements (NDAs) in cases of workplace harassment, discrimination, or retaliation.

The bill passed the Senate with unanimous consent on September 29, 2022. The bill passed the house on November 16, 2022.

The Speak Out Act now makes it illegal for employers to require employees to sign non-disparagement clauses in employment agreements related to these types of workplace violations. This means that employees who experience harassment, discrimination, or retaliation are free to speak out about their experiences without fear of legal repercussions.

Non-disparagement clauses typically prohibit employees from making negative comments about their employer or its products or services. They are often included in employment contracts or severance agreements as a condition of receiving certain benefits, such as a severance package.

The new law has significant implications for both employers and employees. Employers need to review their employment agreements and policies to ensure compliance with the new law.

For questions on compliance, email Sara at sharp@skandslegal.com