From JDSupra, Mark Sommaruga discusses bills being considered by Connecticut General Assembly’s Labor and Public Employees Committee including a bill restricting the use of nondisclosure agreements that applies to nondisclosure agreements with both employees and independent contractors. Mark writes:
The following is a brief summary of the bills that the Committee has voted favorably on and advanced out of committee for further consideration. (Please note: These bills have not been passed by the full General Assembly or signed by the Governor; they have only been approved by the Committee.)
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S.B. No. 1035 (“An Act Concerning Limitations On The Use Of Nondisclosure Agreements”) would limit the misuse of nondisclosure agreements. It would provide that any provision in an agreement between an employer and a prospective, current or former employee or independent contractor shall be void as against public policy if such provision prohibits disparagement or disclosure relating to conduct the employee or independent contractor reasonably believes to be a discriminatory employment practice. It would also prohibit an employer from 1) refusing to hire or employ, discriminating in compensation or in terms, conditions or privileges of employment, or barring or discharging any employee or independent contractor because such person disclosed conduct the person reasonably believed to be a discriminatory employment practice, or because such person disparaged the employer for engaging in conduct the person reasonably believed to be a discriminatory employment practice, or 2) requiring or requesting a prospective, current or former employee or independent contractor to enter into an agreement containing a provision that is void pursuant to this bill, or for an employer to attempt to enforce such provision.
The bill provides that any provision in an agreement between an employer and an employee or volunteer that the individual will not disclose or discuss conduct, or the existence of a settlement involving conduct, that the employee or volunteer reasonably believed under state, federal or common law to be (a) legally impermissible discrimination, (b) legally impermissible harassment, (c) legally impermissible retaliation directed at an employee or volunteer, (d) a wage and hour violation or (e) a sexual assault, or (f) other conduct that is recognized as against a clear mandate of public policy, shall be void and unenforceable.
Prohibited nondisclosure and non-disparagement provisions in an agreement between an employee or volunteer and an employer are those provisions concerning legally impermissible conduct that occurs at the workplace, at work-related events coordinated by or through the employer, between employees or volunteers, or between an employer and an employee or volunteer, whether on or off the employment premises.
Prohibited nondisclosure and nondisparagement provisions include those contained in employment agreements, independent contractor agreements, agreements to pay compensation in exchange for the release of a legal claim, or any other form of agreement between the employer and an employee or a volunteer.
The bill would prohibit an employer from 1) Discharging or otherwise discriminating or retaliating against an employee or volunteer for disclosing or discussing conduct that the employee or volunteer reasonably believed to be legally impermissible discrimination, legally impermissible harassment, legally impermissible retaliation directed at an employee or volunteer, a wage and hour violation, or a sexual assault, or that is recognized as against a clear mandate of public policy, occurring in the workplace, at work-related events coordinated by or through the employer, between employees or volunteers, or between the employer and an employee or volunteer, whether on or off the employment premises; 2) requesting or requiring that an employee or volunteer enter into any agreement provision that is prohibited by this section; or 3) enforcing a provision of an agreement prohibited by this bill, 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 this bill.
This bill would not prohibit: 1) An employer and an employee or volunteer from protecting trade secrets, proprietary information or confidential information that does not involve illegal acts; 2) an employee or volunteer from requesting that the employee and employer enter into a binding written agreement, which may include terms and conditions that preclude the employer from disclosing certain confidential information relating to an employee or a volunteer that does not involve illegal acts; and 3) the enforcement of a provision in any agreement that prohibits the disclosure of the amount paid in settlement of a claim.