The U.S. Congress has taken a step towards improving transparency in the workplace with the recent enactment of the Speak Out Act. On December 7, 2022, President Joe Biden signed this new law into effect.
The Speak Out Act aims to prevent courts from enforcing any contracts restricting individuals from discussing workplace sexual harassment or assault during a dispute that arose after the contract was made. This decision means that employers cannot use prior agreements to stop employees or independent contractors from disclosing information about current or future claims of sexual harassment or assault.
The Speak Out Act applies to:
Pre-dispute Agreements: Employers facing sexual harassment or assault claims may not rely on prior nondisclosure or nondisparagement agreements to silence employees about that conduct.
Post-dispute Agreements: The Speak Out Act does not affect nondisparagement or nondisclosure provisions in agreements entered into after the dispute arose.
Employers must understand that the new law only applies to agreements made "before the dispute arises." Therefore, employers can still enforce nondisclosure or nondisparagement provisions in agreements made to settle a dispute. However, employers should be aware of any state or local laws that may also affect the enforceability of such agreements.
Brought to you by the insurance professionals at Custom Benefit Consultants, Inc.
Speak Out Act, Transparency in the workplace, Nondisclosure agreements, Sexual harassment claims, Contract enforcement prohibition
Kenneth Bahl is the President of Custom Benefit Consultants, Inc., where he has played a pivotal role in leading the company’s mission to create sustainable healthcare solutions that not only address modern challenges but also deliver meaningful savings. With over two decades of experience in the field, Kenneth’s expertise in benefits administration and employee benefits analysis has been instrumental in the company's success. Under his leadership, Custom Benefit Consultants, Inc. has become a trusted partner for employers seeking innovative solutions to meet the needs of their teams. In addition to his leadership role at Custom Benefit Consultants, Inc., Kenneth is also a key player at Control Source, Inc., where he has helped redefine administrative solutions for clients. Through the company’s advanced technology platform, which includes absence management, billing administration, and other dynamic services, Kenneth has enabled businesses to reduce legal risks, lower costs, and enhance operational efficiency. His work ensures that these scalable solutions seamlessly integrate with company culture and branding, positively impacting both employee experience and the company’s bottom line.
Kenneth holds a degree in Healthcare Administration, which laid the foundation for his extensive career in the healthcare benefits sector. His academic background, combined with years of hands-on experience, has given him the expertise to navigate the complexities of employee benefits and help organizations optimize their benefits programs.
Outside of his professional endeavors, Kenneth enjoys a fulfilling family life. He values the balance between his dynamic career and his growing family, which now includes six grandchildren. This personal connection enriches his perspective on the importance of supporting individuals and organizations in ways that foster long-term success, well-being, and positive relationships