Non-Disclosure Agreements

Update

SSB-5996 has been signed by Governor Inslee - effective date is 6/7/2018 and it is listed under Chapter 117, 2018 Laws.



Non-disclosure agreements, legislation takes aim

The issue of non-disclosure agreements came into focus again in the media and across the nation last week due to the coverage surrounding the dissolution of an untold number of NDAs following reports that The Weinstein Co. has filed for bankruptcy.

NPR reports that The Weinstein Co. released all confidentiality provisions “to the extent it has prevented individuals who suffered or witnessed any form of sexual misconduct by Harvey Weinstein from telling their stories.” It is not uncommon for employees of a company to sign a NDA as it protects assets and company secrets. Black’s Law Dictionary (2014) states that those signing are contractually bound to not disclose any information shared by or discovered regarding procedures, trade secrets, or other internal or proprietary matters (1215).

Across the country, legislators are producing bills aimed at protecting future victims bound by NDAs that keep them from telling their stories; and in Washington State, local politicians are taking actions into their own hands. In December 2017, Senator Karen Keiser from the 33rd legislative district introduced a bill that makes it illegal for employers to restrict what a victim of workplace sexual misconduct can say publicly. This legislation states that an employer cannot “as a condition of employment, require an employee to sign a nondisclosure agreement, waiver, or other document that prevents the employee from disclosing sexual harassment or sexual assault.” SSB 5996 passed the House and Senate and as of March 5th is now awaiting a signature from Governor Inslee.

For additional information on NDAs, please visit these sites:

NDAs Are Out of Control. Here’s What Needs to Change,

Understanding Confidentiality Agreements by David V. Radack,

How Non-Disclosure Agreements Can Hurt, And Help, Victims of Sexual Harassment and Assault, and

The ABA’s Strategies for Drafting and Negotiating Non-Disclosure Agreements.

Credits:

Black’s Law Dictionary (10th ed.). (2014). St. Paul, MN: Thomson Reuters, 1215

Regarding Washington State’s battle against NDAs, information can be found at http://nwnewsnetwork.org/post/washington-bill-would-ban-non-disclosure-sexual-harassment-assault and the bill can be located at http://apps2.leg.wa.gov/billsummary?BillNumber=5996&Year=2017

The Weinstein Co. Files for Bankruptcy, Cancels Non-Disclosure Agreements. (2018, March 19). Retrieved from

https://www.npr.org/sections/thetwo-way/2018/03/19/595089301/the-weinstein-co-files-for-bankruptcy-cancels-non-disclosure-agreements