Louisiana: Nondisclosure Clauses for Sexual Harassment and Hostile Work Environment Claims Prohibited
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APPLIES TO All Employers with Employees in LA |
EFFECTIVE August 1, 2024 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
Effective August 1, 2024, HB 161 invalidates any employer-required nondisclosure clause agreed to prior to a workplace misconduct dispute involving a hostile work environment or sexual harassment claim. The bill defines “hostile work environment” as conditions where harassment rises to the level that the harassment alters the ability of an employee to perform the employee’s duties. “Sexual harassment” is defined as unwelcome sexual advances, requests for sexual favors, and other verbal, physical, or inappropriate conduct of a sexual nature when the conduct explicitly or implicitly affects an individual’s employment, unreasonably interferes with an individual’s work performance, or creates an intimidating or offensive work environment.
The definition of a nondisclosure clause is equally broad. It covers any agreement between an employee and employer that prevents, or has the effect of preventing, an employee from disclosing or discussing a hostile work environment, allegations of a hostile work environment, sexual harassment, or allegations of sexual harassment. Individuals can still enter into a confidential settlement agreement relating to a hostile work environment or sexual harassment provided that the agreement is entered into after a report of hostility or harassment is filed or a hostile work environment dispute or sexual harassment dispute has occurred.
The bill is also notable for what it does not include. It does not address the validity of such clauses in the event a claim is asserted after termination of employment. It also does not address whether it applies to agreements entered into after termination like severance agreements. Employers should review their existing agreements with legal counsel to determine whether they are enforceable and make changes to future agreements as necessary.
Action Items
- Review the bill here.
- Review and update confidentiality clauses in all employment agreements with legal counsel.
- Review and update harassment and discrimination policies.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2024 ManagEase