Virginia: Use of Non-Disclosure Agreements and Employee Social Security Numbers Restricted
All Employers with Employees in VA
July 1, 2023
Contact HR On-Call
Virginia passed a law which further limits an employer’s ability to use non-disclosure and non-disparagement agreements with employees. HB 1895 amends Virginia’s previous Non-Disclosure Law that restricts employers from requiring employees or prospective employees to sign a non-disclosure or confidentiality agreement that has the purpose or effect of concealing the details relating to a claim of sexual assault. Under the prior Non-Disclosure Law, any agreements that include such provisions are void and unenforceable.
Set to take effect on July 1, 2023, HB 1895 will amend the Non-Disclosure Law to not only cover agreements that have the purpose and effect of concealing the details relating to a claim of sexual assault, but will also cover agreements that have the purpose and effect of concealing claims of sexual harassment. HB 1895 also expands the Non-Disclosure Law to agreements with a “provision relating to non-disparagement.” For purposes of the statute, “sexual harassment” is defined as “unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when such conduct explicitly or implicitly affects an individual’s employment, unreasonably interferes with an individual’s work performance, or creates an intimidating, hostile, or offensive work environment.”
Also set to take effect on July 1, 2023, Virginia passed SB 1040 which prohibits an employer’s use of employees’ social security numbers (SSN), or any derivative thereof, on any employer issued identification card, access card, badge, or other similar card provided to the employee. While the law does not specifically outline what constitutes a “derivative thereof,” employers can likely assume it includes any portion of an employee’s SSN, such as the last four digits. SB 1040 adds a civil penalty of up to $100 per violation for any employer who knowingly violates this statute.
- Review applicable non-disclosure and non-disparagement agreements with legal counsel.
- Eliminate use of employees’ social security numbers when issuing identification or access cards and/or badges.
- Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.
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. © 2023 ManagEase