An Act Concerning Nondisclosure Agreements in Employment
Maine Legislature, Session 129, LD 1529
Committee: Labor and Housing
Sponsors: HARNETT, BELLOWS, CARDONE, MADIGAN, PEBWORTH, RECKITT, WARREN, CARPENTER

Legislative Document
No. 1529
H.P. 1112
House of Representatives, April 9, 2019
An Act Concerning Nondisclosure Agreements in Employment
Reference to the Committee on Labor and Housing suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative HARNETT of Gardiner.
Cosponsored by Senator BELLOWS of Kennebec and
Representatives: CARDONE of Bangor, MADIGAN of Waterville, PEBWORTH of Blue Hill, 
RECKITT of South Portland, WARREN of Hallowell, Senator: CARPENTER of Aroostook.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  26 MRSA c. 7, sub-c. 3-B is enacted to read:
SUBCHAPTER 3-B
NONDISCLOSURE AGREEMENTS IN EMPLOYMENT
§691.  Nondisclosure agreements
1.  Certain preemployment and employment agreements prohibited.  It is an 
unlawful employment practice for an employer to enter into a contract or agreement with 
an employee or prospective employee:
A.  As a condition of employment, continued employment, promotion, compensation 
or benefits; and
B.  That contains a nondisclosure agreement, nondisparagement agreement, waiver or 
other provision that has the purpose or effect of preventing the employee from 
disclosing or discussing discrimination, including harassment, occurring between 
employees or between an employer and an employee:
(1)  In the workplace;
(2)  At work-related events coordinated by or through the employer; or 
(3)  Off the employment premises.
2.  Certain settlement, separation and severance agreements prohibited.  Unless 
entered into at the employee's, prospective employee's or former employee's request, an 
employer may not enter into a settlement, separation or severance agreement that includes 
a provision that prevents the disclosure of factual information relating to a claim of 
discrimination, including harassment.
A.  A nondisclosure provision in a settlement agreement may not explicitly or 
implicitly:
(1)  Limit an individual's ability to provide testimony or evidence, file claims or 
make reports to any federal or state agency that enforces employment or 
discrimination laws, including, but not limited to, the Maine Human Rights 
Commission and the Department of Labor; or
(2)  Prevent an employee from providing testimony or evidence in state or federal 
litigation or proceedings, including class or collective actions, against the 
employer.
B.  An employer shall include in a settlement agreement that includes any 
nondisclosure provision additional language that clearly states that an employee 
retains the right to provide testimony or evidence, file claims or make reports to any 
federal or state agency that enforces employment or discrimination laws, including, 
but not limited to, the Maine Human Rights Commission and the Department of 
Labor.
C.  The employee, prospective employee or former employee that is a potential party 
to a settlement agreement must be given 21 days to consider the nondisclosure terms 
and conditions and given at least 7 days following the execution of the settlement 
agreement to revoke the agreement.  The agreement is not effective or enforceable 
until the revocation period has expired.
3.  No damages.  An employee, prospective employee or former employee is not 
subject to monetary damages for breaching a contract or agreement prohibited in 
subsection 1 or described in subsection 2.
SUMMARY
This bill prohibits employers from requiring agreements that prevent an employee or 
prospective employee from disclosing or discussing discrimination, including harassment, 
occurring between employees or between an employer and an employee.
The bill prohibits settlement agreements, unless requested by the employee, 
prospective employee or former employee, from including a provision that prevents the 
disclosure of factual information relating to a claim of discrimination, including 
harassment.  Agreements may not explicitly or implicitly limit an individual's ability to 
provide testimony or evidence, file claims or make reports to any federal or state agency 
that enforces employment or discrimination laws, including, but not limited to, the Maine 
Human Rights Commission and the Department of Labor.
An employee, prospective employee or former employee is not liable for damages for 
breaching a prohibited nondisclosure agreement or a settlement agreement.