Congress Passes the Speak Out Act, Outlawing the Use of NDAs to Silence Victims of Sexual Harassment and Assault

On Nov. 16, 2022, by a vote of 315-109, the U.S. House of Representatives passed the Speak Out Act, a bipartisan bill that renders pre-dispute nondisclosure agreements null and void as applied to allegations of sexual harassment or assault. The bill passed the Senate via unanimous vote on Sept. 29, 2022, and now heads to President Biden, who is expected to sign the Speak Out Act into law. If you use a pre-dispute nondisclosure agreement in your workplace, we recommend reviewing it carefully to ensure compliance with the Speak Out Act. For example, a pre-dispute nondisclosure employment agreement should clearly disclaim that its restrictions do not apply to allegations of sexual harassment and assault.

Although the bill does not ban the use of nondisclosure agreements in post-dispute settlement agreements in sexual harassment and assault cases, there are tax incentives not to seek confidentiality. Specifically, the IRS does not allow a deduction for settlement payments made in sexual harassment and assault cases if the payment is subject to a nondisclosure agreement.

EEOC Deadlocked Following Commissioner Resignation

On Nov. 18, 2022, Equal Employment Opportunity Commission (EEOC) Commissioner and Republican appointee Janet Dhillon resigned. The EEOC is governed by a five-member commission, whose members are appointed by the President. Commissioner Dhillon's term...

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