An Act Concerning Nondisclosure Agreements in Employment
Maine Legislature, Session 130, LD 0965
Committee: Labor and Housing
Sponsors: HARNETT, MIRAMANT, EVANGELOS, MORALES, PEBWORTH, CARNEY
Amends: 26 MRSA §599-C

Legislative Document
No. 965
H.P. 711
House of Representatives, March 9, 2021
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 MIRAMANT of Knox and
Representatives: EVANGELOS of Friendship, MORALES of South Portland, PEBWORTH of 
Blue Hill, Senator: CARNEY of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  26 MRSA §599-C is enacted to read:
§599-C.  Nondisclosure agreements
1.  Employer defined.  As used in this section, unless the context otherwise indicates, 
"employer" means a person in this State that employs individuals and includes the State 
and political subdivisions of the State. "Employer" includes a person acting in the interest 
of an employer directly or indirectly.
2.  Certain preemployment and employment agreements prohibited.  An employer 
may not require an employee, intern or applicant for employment to enter into a contract 
or agreement that waives or limits any right to report or discuss discrimination, retaliation 
or harassment occurring in the workplace or at work-related events.
3.  Certain settlement, separation and severance agreements prohibited. An 
employer may not require an employee, intern or applicant for employment to enter into a 
settlement, separation or severance agreement that includes a provision that:
A.  Limits an individual's right to report, testify or provide evidence to a federal or state 
agency that enforces employment or discrimination laws;
B.  Prevents an individual from testifying or providing evidence in federal and state 
court proceedings in response to legal process; or
C.  Prohibits an individual from reporting conduct to a law enforcement agency.
4.  Mutuality of nondisclosure agreements.  A settlement, separation or severance 
agreement may include a provision that prevents the subsequent disclosure of factual 
information relating to a claim of discrimination, retaliation or harassment, but only if:
A.  The employee, intern or applicant for employment initiates a request for such a 
provision;
B.  The provision applies to all parties to the agreement to the extent otherwise 
permitted by law;
C.  The agreement clearly states that the individual retains the right to report, testify or 
provide evidence to federal and state agencies that enforce employment or 
discrimination laws and to testify and provide evidence in federal and state court 
proceedings; and
D.  The employer retains a copy of the agreement 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.
5.  Enforcement.  The Department of Labor shall enforce this section.
6.  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 who declines to enter into a contract or agreement that waives or 
limits any right to report or discuss discrimination, retaliation or harassment occurring 
in the workplace or at work-related events, the individual may elect:
(1)  To receive liquidated damages pursuant to this paragraph; or
(2)  Employment or reinstatement with back wages.
SUMMARY
This bill prohibits an employer from requiring an employee, intern or applicant for 
employment to enter into a contract or agreement that waives or limits any right to report 
or discuss discrimination, retaliation or harassment occurring in the workplace or at work-
related events.
It also prohibits an employer from requiring an employee, intern or applicant for 
employment to enter into a settlement, separation or severance agreement that limits an 
individual's right to report, testify or provide evidence to a federal or state agency that 
enforces employment or discrimination laws, prevents an individual from testifying or 
providing evidence in federal and state court proceedings in response to legal process or 
prohibits an individual from reporting conduct to a law enforcement agency. This bill 
allows a settlement, separation or severance agreement, under certain circumstances, to 
include a provision that prevents the subsequent disclosure of factual information relating 
to a claim of discrimination, retaliation or harassment.
It provides the Department of Labor with the duty to enforce these provisions and 
allows an individual to receive liquidated damages or to be employed or reinstated with 
back wages when an employer discharges or refuses to hire an individual who declines to 
enter into a contract or agreement that waives or limits any right to report or discuss 
discrimination, retaliation or harassment occurring in the workplace or at work-related 
events.