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‘They cannot put it under the rug’: NDA bill aims to give voice to victims 

Jul 21, 2022

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Hollywood mogul Harvey Weinstein, comedian and actor Bill Cosby and Fox News CEO Roger Ailes used non-disclosure agreements to silence women accusing them of sexual misconduct. To curb this type of misconduct in the workplace, a bipartisan group of lawmakers in Congress drafted the Speak Out Act.

The bill builds upon a law President Biden signed in March ending forced arbitration in workplace sexual assault and harassment cases. 

“The ones that I think are in the spotlight here are where somebody has either settled a harassment complaint,” employment law attorney Emily Smith-Lee said. “And as a consequence of being given a settlement has agreed not to talk about it, or a more restrictive NDAs that just say you won’t talk about what happens in the company.”

If the bill were to become law, it would allow victims to speak up even if they signed a confidentiality agreement

“Arbitration is a private dispute resolution proceeding, not a public records thing like a court proceeding, and then there’s the NDA. The two [arbitration and NDAs] work together to keep these things out of the public eye,” Smith-Lee said. 

This law would be a win for critics of NDAs but could push companies to think twice about dishing out severance packages. 

“I suppose a critic could say that if you took that incentive away, we might have fewer people getting, you know, manageable and decent severance agreements as they leave companies,” Smith-Lee said.

Rep. Lois Frankel (D-FL), who co-sponsored the bill, told the Washington Post, “When companies that are going to have offenders are aware that they cannot hide illegal sexual harassment, that they cannot put it under the rug, they’re going to take more steps from the get-go to keep it from happening.”

JIMMIE JOHNSON: A HOLLYWOOD MOGUL

GAYLE KING: “Harvey Weinstein’s former assistant at Miramax is breaking her non-disclosure agreement and alleging his sexual harassment.”

JOHNSON: A STAND-UP COMEDIAN AND ACTOR

KACEY, COSBY ACCUSER: “I remember waking up in a bed with Mr. Cosby naked beneath his open robe.”

JOHNSON: AND A CONSERVATIVE NEWS CEO. 

GRETCHEN CARLSON: “I’m Gretchen Carlson, the woman at the center of the Fox News sexual harassment scandal [which] took down Roger Ailes.”>

THESE THREE POWERFUL MEN IN THE MEDIA INDUSTRY USED NON-DISCLOSURE AGREEMENTS OR N-D-A’S TO SILENCE SOME WOMEN ACCUSING THEM OF SEXUAL MISCONDUCT. 

A BIPARTISAN GROUP OF LAWMAKERS IN CONGRESS ARE NOW PUSHING LEGISLATION TO ENSURE IT NEVER HAPPENS AGAIN. LET ME EXPLAIN. 

IT’S NOT UNCOMMON FOR EMPLOYEES IN WHITE-COLLAR ROLES TO SIGN A N-D-A FOR EMPLOYMENT. 

EMILY SMITH-LEE: “Your classic NDA is intended to protect trade secrets, proprietary information, sales strategies, business strategies, all the things companies are legitimately interested in keeping confidential.” 

JOHNSON: MEET EMPLOYMENT LAW ATTORNEY EMILY SMITH-LEE. 

SHE KNOWS A LOT ABOUT THIS STUFF. 

SMITH-LEE: “The ones that I think are in the spotlight here are where somebody has either settled a harassment complaint, and as a consequence of being given a settlement has agreed not to talk about it, or more restrictive NDAs that just say you won’t talk about what happens in the company, outside the company.”

JOHNSON: THE SPEAK OUT ACT BUILDS UPON A LAW PRESIDENT BIDEN SIGNED IN MARCH ENDING FORCE ARBITRATION IN WORKPLACE SEXUAL ASSAULT AND HARASSMENT CASES.

IT WILL ALLOW VICTIMS TO SPEAK UP EVEN IF THEY SIGNED A CONFIDENTIALITY AGREEMENT. 

SMITH-LEE: “Arbitration is a private dispute resolution proceeding, not a public record like a court proceeding. And then the NDA is to work together to keep these things out of the public eye.”

WHILE THIS IS A WIN FOR CRITICS OF N-D-A’S, SMITH-LEE ADDS THIS BILL COULD MAKE COMPANIES THINK DIFFERENTLY ABOUT THE USE OF SEVERANCE PACKAGES. 

SMITH-LEE:  “I suppose a critic could say that if you took that incentive away, we might have fewer people getting, you know, manageable and decent severance agreements as they leave companies.”

JOHNSON: FLORIDA CONGRESSWOMAN LOIS FRANKEL CO-SPONSORED THE BILL. 

SHE TOLD THE WASHINGTON POST, “WHEN COMPANIES THAT ARE GOING TO HAVE OFFENDERS ARE AWARE THAT THEY CANNOT HIDE ILLEGAL SEXUAL HARASSMENT, THAT THEY CANNOT PUT IT UNDER THE RUG, THEY’RE GOING TO TAKE MORE STEPS FROM THE GET-GO TO KEEP IT FROM HAPPENING.”

ACCORDING TO AN E-E-O-C REPORT, 70-PERCENT OF PEOPLE WHO EXPERIENCE WORKPLACE HARASSMENT NEVER TALK WITH A SUPERVISOR ABOUT THE INCIDENT AND AS FEW AS 6-PERCENT OF THEM FILE A FORMAL COMPLAINT.