Workplace settlements would limit secrecy and nondisparagement terms

Private employers would not be allowed to require workers or independent contractors to sign settlement terms that hide or restrict discussion of workplace sexual harassment, discrimination, or retaliation claims. The rule would cover prospective, current, and former employees and independent contractors, and claims involving the workplace, work-related events, or conduct between employers and workers on or off the job site. The settlement must relate to a claim of workplace sexual harassment, discrimination, or retaliation. The text also would bar preventing an employee from disclosing such a claim.

A settlement could keep confidential only the payment amount or facts that could identify the worker or contractor, when that person requests the protection. The limits would apply to settlement agreements between a private employer and a prospective, current, or former employee or independent contractor alleging workplace sexual harassment, discrimination, or retaliation. A valid subpoena, government order, or other law could still require disclosure. Other confidentiality terms would be legally void and unenforceable.