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We can represent workers in Washington state and do so regularly. Recently, however, a number of states have enacted laws that limit the use of such provisions. As of June 9, 2022, noncompliant provisions in an employment agreement, contractor agreement, agreement to pay compensation in exchange for the release of a legal claim, or any other agreement between an employer and an employee or contractor are void and unenforceable. Violators of the act are liable for actual or statutory damages of $10, 000, whichever is more. The reasoning is straightforward enough: Companies want to protect their reputations, and confidentiality/nondisparagement provisions in settlement agreements have been a way to ensure that unhappy employees do not continue to make disparaging statements about their current or former employers after the parties' disputes have resolved. New State Laws Restrict Employers' Use Of Non-Disclosure Agreements. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. The law also prohibits any agreement between an employer and employee to keep the settlement of claims based on such illegal conduct confidential, though they can agree to keep the amount of a settlement confidential. What is the Washington Silenced No More Act? The new law does not mention investigations. The Washington law called the Silenced No More Act went into effect on June 9, 2022.

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The law repealed former RCW 49. Nondisclosure agreements ("NDAs") are often intended to protect confidential and proprietary business information, or trade secrets. The act overturned RCW 49. "The way to protect employees from harassment and discrimination is to enable them to speak up. With an effective date of June 9, 2022, House Bill 1795, or the "Silenced No More Act, " prevents an employer and employee from agreeing to refrain from discussing conduct that the employee reasonably believed to be illegal discrimination, harassment, retaliation, wage and hour violation, or sexual assault. Threats include influence or threats by both the employer or third parties on their behalf.

Silenced No More Act Washington Post Article

Other Blogs by Pullman & Comley. It is not intended to constitute legal advice nor does it create a client-lawyer relationship between Jackson Lewis and any recipient. One notable exception is that the Act does not apply retroactively to invalidate nondisclosure or nondisparagement provisions contained in settlement agreements signed prior to June 9, 2022. Employers should update template employment, severance, and settlement agreements to ensure compliance with the new law. On March 3, 2022, President Biden signed H. R. 4445, the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (herein "H. 4445"), into law. Effective June 9, 2022, Washington State's Silenced No More Act (the "Act") will prohibit nondisclosure and nondisparagement provisions regarding illegal acts of discrimination, harassment, retaliation, wage and hour violations, and sexual assault in employment agreements. Employees can disclose information about workplace activity they reasonable believe to be unlawful, if it includes acts of harassment, discrimination, sexual assault or wage and hour violations.

Washington Silenced No More Act

Washington's law may also have implications on employers' ability to require confidentiality during workplace investigations. Washington state passed its Silenced No More Act in 2018. The trend that began with Washington state's Silenced No More law has now spread to 14 states, with two more states considering bills. Between an employee and employer, whether on or off the employment premises. Employers should review and revise any employment-related agreements and independent contractor agreements with confidentiality and/or non-disparagement provisions that could be construed to prevent employees from discussing illegal discrimination, harassment, retaliation, wage and hour violations, or sexual assault. It is about giving workers a voice, " State Rep. Liz Berry, who introduced the House version of the bill, said in a statement. Laws already exist to ban retaliation, now employers who settle retaliation lawsuits will not be able to put the settlement under an NDA. Who does the Act apply to? Review existing employer-employee agreements to make sure nothing violates the new law. There are some narrow exceptions. The bill is now headed to the governor's desk to sign. Employers are further prohibited from discriminating or retaliating against an employee who discloses such conduct. First, the Silence No More Act prohibits employers from entering into non-disclosure or non-disparagement agreements with employees regarding illegal acts of discrimination, harassment, retaliation, wage and hour violation, and sexual assault. Cooley is available to help any employer seeking guidance on necessary changes to their employment, contractor, and settlement and separation agreements for compliance with the act going forward.

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The 2018 version of Washington's law prohibited workplace non-disclosure agreements (NDA) that would stop employees from sharing factual details of sexual harassment or sexual assault that occurred at or about work. Before proceeding, please note: If you are not a current client of Lane Powell PC, please do not include any information in this email that you or someone else considers to be confidential or secret in nature. Washington joins California in becoming the second state to pass the Silenced No More Act, which bars employers from using Non-Disclosure Agreements ("NDA") to prevent workers from discussing certain allegations of illegal workplace activities. Washington now becomes the second state (after California) to render nondisclosure and nondisparagement provisions illegal in employment agreements. A similar bill signed by President Biden on March 3, 2022 – the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 – invalidated mandatory arbitration agreements signed before a dispute that preclude a party from filing a lawsuit in court involving sexual assault or sexual harassment. That is no longer the case. 375, when entering into a settlement or separation agreement with an employee who has alleged a claim of discrimination under ORS 659A.

Silenced No More Act Washington Times

KTC's Employment Law Updates provide summaries on recent developments affecting employers in Washington State. High-tech companies like Amazon and Microsoft have long relied on NDAs to restrict outgoing employees from shining light on workplace conflicts. Mack Mayo at Piskel Yahne Kovarik PLLC has extensive experience in preparing employee handbooks, internal policies and procedures, employment agreements, independent contractor agreements, separation agreements, and severance agreements. For questions or more information regarding these developments or your employment rights or obligations, please contact the KTC attorney with whom you normally work. E. 1795 does not prohibit all forms of nondisclosure agreements. What are the consequences and repercussions? This blog/web site presents general information only. The Silenced No More Act also has significant impact on settlement agreements. Violations of this law may result in: - Actual damages; - Statutory damages of $5, 000 to the plaintiff; - Attorney fees and costs. Employers in violation of the new law will be subject to damages of the greater of $10, 000 or actual damages. "A nondisclosure or nondisparagement provision in any agreement signed by an employee who is a Washington resident is governed by Washington law. Employers should review their agreements to identify any nondisclosure and nondisparagement provisions that do not comply with the new law.

Washington Silenced No More Act Text

Effective June 9, the Washington Legislature rescinded the 2018 law in favor of a far stricter restriction on confidentiality and nondisparagement agreements. The 2018 law (RCW 49. This bill will allow all survivors of inappropriate or illegal workplace misconduct to share their experiences if they choose to do so. The law bans these clauses not just in employment agreements or contracts, but also for independent contractor agreements, settlement releases, severance agreements, any form of agreement between the employee and employer. 3) attempt to enforce a provision that is prohibited by this law, whether through a lawsuit, a threat to enforce, or any other attempt to influence a party to comply with a prohibited provision. Some employers have wondered how, if at all, the new law impacts confidentiality during workplace investigations. For more information, visit. All Washington employers should immediately review and revise any employment agreement with confidentiality and/or nondisparagement provisions.

Additionally, the Act prohibits employers from attempting to enforce a provision of any agreement prohibited by the law, whether through a lawsuit, a threat to enforce, or any other attempt to influence a party to comply with a provision in any agreement that is prohibited by the law. The Washington law also includes wage and hour violations and retaliation as activity that is protected from non-disclosure. Additionally, employers that opt to settle weak (or even frivolous) claims by employees to avoid the costs and disruption of litigation have a legitimate interest in keeping the terms of such settlements confidential. Existing agreements that violate the act do not need to be revised, and a violation occurs only if employers attempt to enforce those agreements. It is based on Washington law and is intended for use with employees or businesses located in Washington. NDA restrictions under these statutes can be divided into two basic categories: those that prohibit the use of NDAs in all circumstances involving workplace discrimination; and those that more narrowly target sexual harassment. Posted on July 19, 2022 by James Blankenship. In the wake of the #MeToo movement, many West Coast states passed laws that encouraged employees to freely discuss workplace sexual harassment and forbid employers from stopping this speech. Thus, employees who reside in Washington, but work in another state, will be covered. The Act also does not clearly define what counts as a "dispute, " which could refer only to a lawsuit, but also could be interpreted to include a claim to the CCHRO or EEOC, or even a report to the employer's HR department. Oregon's law imposes a $5, 000 penalty, but permits courts to award additional damages, including punitive damages. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties. It is effective immediately and applies retroactively to agreements signed before its effective date. Not only are most employment-related agreements covered—including settlement and severance agreements—many types of employment-related claims encompassing a wider range of workplace conduct must remain open for disclosure and discussion, acutely limiting the use of common nondisclosure and nondisparagement provisions.

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