Employers in Maryland and Virginia should be aware of new laws that affect noncompete, confidentiality, nondisclosure, and nondisparagement provisions in pre-dispute agreements that are provided to employees at the onset of or during their employment.
In Virginia, employers are now prohibited from requiring employees to enter into nondisclosure, confidentiality, and/or nondisparagement agreements that relate to claims of sexual harassment. Virginia's House Bill 1895 amends an existing Virginia law that already covers sexual assault.
Separately, in Maryland, employers may not impose noncompete agreements upon employees who earn less than $41,350 in 2023 or $46,800 in 2024.
Employers in both states should review and revise their agreements with employees to account for these new laws.
Virginia Employers
Effective July 1, 2023, Virginia employers are prohibited from requiring employees to enter into confidentiality, nondisclosure, or nondisparagement agreements that relate to claims of sexual harassment or sexual assault. Virginia is following the lead of other states that have similar laws, including New Jersey, New York, Washington, and California, as well as provisions under the recent federal Speak Out Act.
The Speak Out Act prohibits the use of nondisclosure and nondisparagement agreements related to allegations of sexual assault or sexual harassment that are entered into before the dispute arises. Employers should note that this law only applies to prospective and...
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