On Wednesday, President Joe Biden signed legislation limiting the use of confidentiality agreements that prevent victims of sexual harassment from disclosing wrongdoing at work in public. S. 4524, the “Speak Out Act,” which prohibits judicial enforcement of a nondisclosure clause or non-disparagement clause agreed to before a dispute arises involving sexual assault or sexual harassment.
After some victims of Hollywood producer Harvey Weinstein broke their NDAs to publicly accuse him of harassment and assault, a storm of #MeToo allegations resulted. This brought NDAs to the attention of a large portion of the general public.
Only agreements that are inked prior to a dispute are covered by the bill.
New York Sen. Kirsten Gillibrand, a Democrat who introduced the measure said, “Instead of protecting trade secrets as it was initially intended, abusive use of NDAs silence employees and covers up serious and systemic misconduct,”
Biden acted on the bipartisan Speak Out Act, which forbids the use of nondisclosure agreements that workers or contractors are obliged to sign, frequently as a condition of employment, according to White House press secretary Karine Jean-Pierre. Fans are excited.
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