An Act Concerning Nondisclosure Agreements in Employment
Maine Legislature, Session 129, LD 1529
Committee Amendment CA_A_H448 (House)
Amends: 26 MRSA §594-A

COMMITTEE AMENDMENT .. ,4" to H.P. 1112, L.D. 1529, Bill, "An Act 
Concerning Nondisclosure Agreements in Employment" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 26 MRSA §594-A is enacted to read: 
§594-A. Nondisclosure agreements 
1. 
Certain preemployment and employment agreements prohibited. 
An 
employer may not require an employee, intern, applicant for employment or applicant for 
internship to enter into a contract with the employer that contains a nondisclosure 
agreement. nondisparagement agreement, waiver or other provision that prevents the 
employee. intern or applicant from disclosing or discussing discrimination. including 
harassment, occurring in the workplace or at work-related events coordinated by or 
through the employer. 
2. Certain settlement, separation and severance agreements prohibited. An 
employer may not require an employee, intern, applicant for employment or applicant for 
internship to 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, unless the employee, intern or applicant requests 
such a provision. 
A. A nondisclosure provision in a settlement. separation or severance agreement may 
not explicitly or implicitly: 
(1) Limit an individual's ability to provide testimony or evidence 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 individual from providing testimony or evidence in a federal or 
state court proceeding. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. ,4" to H.P. 1112, L,D, 1529 
B. An employer shall include in a settlement. separation or severance agreement 
containing a nondisclosure provision additional language that clearly states the 
individual retains the right: 
(1) To provide testimony or evidence. 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; 
and 
(2) To provide testimony or evidence in a federal or state court proceeding. 
C. An employer shall give the individual 21 days to consider a settlement. separation 
or severance agreement containing a nondisclosure provision and at least 7 days 
following the execution of the agreement to revoke the agreement. The agreement is 
not effective or enforceable until the revocation period has expired. 
D. 
An employer shall retain a copy of any settlement, separation or severance 
agreement that prevents the disclosure of factual information relating to a claim of 
discrimination. including harassment. in the individual's personnel file for 6 years 
following the execution of the agreement or the end of employment, whichever is 
later. Records required to be kept by this paragraph must be accessible to any 
representative of the Department of Labor at any reasonable hour. 
3. Retaliation and interference prohibited. An employer may not: 
A. 
Refuse to hire, discharge. threaten or otherwise discriminate against any 
individual based solely on that individual's objection to any act or practice by that 
employer in violation of this section: or 
B. Coerce. intimidate. threaten or interfere with any individual in the exercise or 
enjoyment of the rights granted or protected by this section. 
4. Enforcement. The Department of Labor shall enforce this section. 
5. Penalties. An employer that violates this section: 
A. May be assessed a fine of up to $1,000 for each violation of this section, which 
must be paid to the Treasurer of State; and 
B. Shall pay liquidated damages to the individual in an amount equal to 3 times the 
amount of the total assessed fines, except that for an employer's discharge of or 
refusal to hire an individual in violation of subsection 3. the individual may elect: 
(1) To receive liquidated damages pursuant to this paragraph; or 
(2) Employment or reinstatement with back wages.' 
SUMMARY 
This amendment replaces the bill. It prohibits an employer from reqmrmg an 
employee, intern, applicant for employment or applicant for internship to enter into a 
7 
contract with the employer that contains a nondisclosure agreement, nondisparagement 
agreement, waiver or other provision that prevents the employee, intern or applicant from 
COMMITTEE AMENDMENT 
,(L 
l 
COMMITTEEAMENDMENT"A"toH.P. 1112,L.D. 1529 
disclosing or discussing discrimination, including harassment, occurring in the workplace 
or at work-related events coordinated by or through the employer. 
It also prevents an employer from requiring an employee, intern, applicant for 
employment or applicant for internship to 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, unless the employee, intern or 
applicant requests such a provision. Agreements may not explicitly or implicitly limit an 
individual's ability to provide testimony or evidence 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, and any 
agreement must make it clear that an individual retains the right to provide testimony or 
evidence 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. 
It specifies that an individual must be given 21 days to consider any agreement 
containing nondisclosure provisions and be provided at least 7 days following the 
execution of the agreement to revoke the agreement. The bill states that an agreement is 
not effective or enforceable until the revocation period has expired. 
It requires that an employer retain a copy of any settlement, separation or severance 
agreement that prevents the disclosure of factual info1mation relating to a claim of 
discrimination, including harassment, in the individual's personnel file for 6 years. 
It prohibits an employer from retaliating against an individual who opposes any act or 
practice that is unlawful under these provisions or interfering with an individual in the 
exercise or enjoyment of the rights granted or protected by these provisions. It provides 
the Department of Labor with the duty to enforce these provisions. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/30/19 .wac:.. 
LD 1529 
LR 676(02) 
An Act Concerning Nondisclosure Agreements in Employment 
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Fiscal Note for Bill as Amended by Committee Amendment /l ( /J, '/l/ 3' 
Committee: Labor and Housing 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Minor revenue increase - General Fund 
Minor revenue increase - Other Special Revenue Funds 
Correctional and Judicial Impact Statements 
This bill may increase the number of civil suits filed in the court system. 
The additional workload associated with the minimal number of new cases filed in the court system does not require 
additional funding at this time. 
The collection of additional filing fees and fine revenue may increase General Fund and other dedicated revenue by 
minor amounts. 
Fiscal Detail and Notes 
Additional costs to the Department of Labor to implement the requirements of this legislation can be absorbed within 
existing budgeted resources. 
LR0676(02) - Fiscal Note - Page 1 of 1