Speak Out Act, to waive NDAs in sexual harassment cases, advances

REUTERS/Issei Kato
  • U.S. Senate panel OKs bill to lift enforcement of some NDAs
  • Comes after ban on forced arbitration of harassment claims

(Reuters) - The U.S. Senate Judiciary Committee on Thursday unanimously approved a bill that would limit the enforcement of nondisclosure agreements (NDAs) in cases involving workplace sexual harassment and assault.

The bipartisan vote by the 22-member committee tees up a vote by the full Senate on the bill, known as the Speak Out Act. An estimated one-third of private sector workers have signed agreements not to disclose details of their employment or disparage their employers.

The Speak Out Act was introduced in July, a few months after Congress passed a bill supported by business groups that bans the enforcement of mandatory arbitration agreements in cases involving sexual harassment and assault.

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Tens of millions of workers have signed agreements requiring the arbitration of legal disputes, and the new law is one of the most impactful policy changes to come out of the #MeToo movement.

Supporters of the Speak Out Act say businesses can use NDAs to prevent victims of harassment and sexual assault from speaking publicly, which allows harassers to continue their illegal conduct.

The bill is sponsored by Democrats Kirsten Gillibrand of New York and Mazie Hirono of Hawaii and Republicans Lindsey Graham of South Carolina and Marsha Blackburn of Tennessee. A version of the bill was introduced in the House of Representatives in June.

The broad support for the bill is an acknowledgment that silencing victims only perpetuates sexual violence and harassment, according to Tad Thomas, president of the nonprofit American Association for Justice.

"We are hopeful that this bill marks an important first step towards a world in which no survivor is ever silenced with an NDA," Thomas said in a statement.

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U.S. Congress passes ban on forced arbitration of worker sex abuse claims

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Dan Wiessner (@danwiessner) reports on labor and employment and immigration law, including litigation and policy making. He can be reached at daniel.wiessner@thomsonreuters.com.