Federal Ban on Enforcement of Pre-Dispute Non-Disclosure Agreements for Sexual Harassment and Assault Claims

Federal Ban on Enforcement of Pre-Dispute Non-Disclosure Agreements for Sexual Harassment and Assault Claims

On December 7, 2022, President Joe Biden signed the Speak Out Act (the “Act”) into law. The Act prohibits and renders judicially unenforceable any non-disclosure or non-disparagement clauses covering sexual harassment and/or sexual assault disputes “before the dispute arises.”  The phrase “before the dispute arises” has been interpreted to reference the period before the allegation was made by the alleged victim. This new federal law applies to all covered claims filed on or after December 7, 2022. The full text of the Act can be found here.