With workplace-related sexual harassment stories continuing to dominate national headlines, we thought it might be appropriate to address an issue that has frequently arisen in the context of these stories, namely the use by some employers of a nondisclosure (or “confidentiality”) agreement (NDA) to protect certain information from public disclosure. The increased scrutiny of NDAs has put the spotlight on how they are being used, and whether or not it is a good idea to continue using them, especially in the context of settlements involving sexual harassment claims.
Indeed, NDAs have received a lot of negative attention because of new revelations that high-powered individuals, who are currently being accused of sexual harassment or misconduct, had previously settled sexual harassment cases with an NDA preventing disclosure of the allegations. According to critics, the use of the NDA in this context has allowed the harasser to continue his behavior because the alleged victim is barred from sharing her story, while allowing the harasser to remain in his position of power by keeping the allegations confidential.
In light of this increased scrutiny, NT Lakis attorneys have prepared a guide to the purpose of NDAs, how they are typically used, common issues that can arise when using NDAs, and current federal and state legislative activity aimed at curbing their use, including a provision contained in the recently enacted tax reform law.
Members of the Center for Workplace Compliance (CWC) can read more here.