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Wednesday, October 7, 2026

Maine is the Latest State to Limit Private Employer Use of Nondisclosure Agreements - JD Supra

Effective August 8, 2022, a new Maine law becomes the latest example of states limiting the use of employment related nondisclosure agreements (NDAs). The law prevents employers from requiring employees and prospective employees to enter into contracts or agreements that “[have] the purpose or effect of preventing the employee from disclosing or discussing discrimination, including harassment.” In addition to prohibitions on such provisions in agreements with prospective and current employees, the law also restricts provisions in settlement, separation, and severance agreements, that “prevent[] the disclosure of factual information relating to a claim of discrimination, including harassment.” There is an exception to this restriction, specifically when agreements are entered into at the employee’s request. Also, under this law, agreements may not prevent individuals from “provid[ing] testimony or evidence, fil[ing] claims, or mak[ing] reports to any federal or state agency” or “in state or federal litigation or proceedings” and requires agreements to explicitly state that employees retain those rights. Importantly, the law requires employers to provide employees with 21 days to consider a nondisclosure provision and then seven days to revoke the agreement once executed.

Maine’s new law is part of a developing trend, as numerous states have put similar laws into effect in recent years. For example, California, Hawaii, Illinois, Maryland, Nevada, New Jersey, New Mexico, New...



Read Full Story: https://www.jdsupra.com/legalnews/maine-is-the-latest-state-to-limit-4708631/